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 811-01879
Janus
Investment Fund
(Exact name of registrant as specified in charter)
151 Detroit Street, Denver,
Colorado 80206
(Address of principal executive offices) (Zip code)
Michelle Rosenberg, 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:
12/31/16
Item 1 - Reports to Shareholders
SEMIANNUAL REPORT December 31, 2016 | |||
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)
FUND SNAPSHOT INTECHs active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC | ||||
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2016, INTECH Emerging Markets Managed Volatility Fund returned -3.98% for its Class I Shares. This compares to the 4.49% 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
Led by riskier segments of the market, the MSCI Emerging Markets Index posted a return of 4.49% for the six-month period ending December 31, 2016. INTECH Emerging Markets Managed Volatility Fund underperformed the MSCI Emerging Markets Index over the period and generated a return of -3.98%.
The Funds defensive positioning acted as a significant headwind to relative performance as investors risk appetites increased in the emerging equity markets. On average, the Fund was overweight lower volatility stocks, or stocks with a lower total risk (standard deviation of returns), as well as lower beta stocks, or stocks with lower sensitivity to market movements. During the period higher volatility and higher beta stocks outperformed lower volatility and lower beta stocks as well as the overall market, on average. Consequently, the Funds overweight to lower volatility and lower beta stocks detracted from 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. The 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 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 overweight to the defensive consumer staples sector, as well as an average overweight allocation to the telecommunication services sector, detracted from relative performance. An overall negative selection effect also detracted from the Funds relative performance during the period, especially within the materials and financials sectors.
Janus Investment Fund | 1 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
OUTLOOK
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Managing downside exposure potentially allows for returns to compound and improve risk-adjusted returns over time. Over the long term, we believe that by reducing risk when market volatility increases and behaving like a core equity fund when market volatility is low, the Fund will achieve its investment objective of producing an excess return over the benchmark with lower absolute risk. 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, 2016 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Fund At A Glance
December 31, 2016
5 Largest Equity Holdings - (% of Net Assets) | |
Chunghwa Telecom Co Ltd | |
Diversified Telecommunication Services | 4.4% |
Emirates Telecommunications Group Co PJSC | |
Diversified Telecommunication Services | 2.5% |
Taiwan Mobile Co Ltd | |
Wireless Telecommunication Services | 2.2% |
KT&G Corp | |
Tobacco | 2.0% |
AAC Technologies Holdings Inc | |
Electronic Equipment, Instruments & Components | 1.9% |
13.0% |
Asset Allocation - (% of Net Assets) | |||||
Common Stocks | 97.6% | ||||
Investment Companies | 1.7% | ||||
Preferred Stocks | 0.9% | ||||
Rights | 0.0% | ||||
Other | (0.2)% | ||||
100.0% |
Emerging markets comprised 98.5% of total net assets.
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2016 | As of June 30, 2016 |
Janus Investment Fund | 3 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Performance
See important disclosures on the next page. |
| Expense Ratios - | ||||||||
Average Annual Total Return - for the periods ended December 31, 2016 |
|
| per the October 28, 2016 prospectuses | ||||||
|
| Fiscal
| One
| Since |
|
| Total Annual Fund
| Net Annual Fund
| |
Class A Shares at NAV |
| -4.03% | 1.20% | -3.73% |
|
| 10.45% | 1.40% | |
Class A Shares at MOP |
| -9.57% | -4.64% | -6.48% |
|
|
|
| |
Class C Shares at NAV | -4.44% | 0.34% | -4.51% |
|
| 11.27% | 2.20% | ||
Class C Shares at CDSC |
| -5.39% | -0.66% | -4.51% |
|
|
|
| |
Class D Shares(1) |
| -4.09% | 1.24% | -3.66% |
|
| 10.37% | 1.28% | |
Class I Shares |
| -3.98% | 1.36% | -3.53% |
|
| 9.40% | 1.13% | |
Class S Shares |
| -4.14% | 1.09% | -3.86% |
|
| 10.67% | 1.62% | |
Class T Shares |
| -4.01% | 1.33% | -3.62% |
|
| 10.37% | 1.37% | |
MSCI Emerging Markets Index |
| 4.49% | 11.19% | -0.63% |
|
|
|
| |
Morningstar Quartile - Class I Shares |
| - | 4th | 3rd |
|
|
|
| |
Morningstar Ranking - based on total returns for Diversified Emerging Markets Funds |
| - | 754/842 | 573/771 |
|
|
|
|
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, 2016 |
INTECH Emerging Markets 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.
See Financial Highlights for actual expense ratios during the reporting period.
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.
© 2016 Morningstar, Inc. All Rights Reserved.
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.
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 | $959.70 | $6.13 |
| $1,000.00 | $1,018.95 | $6.31 | 1.24% | ||
Class C Shares | $1,000.00 | $955.60 | $9.86 |
| $1,000.00 | $1,015.12 | $10.16 | 2.00% | ||
Class D Shares | $1,000.00 | $959.10 | $5.63 |
| $1,000.00 | $1,019.46 | $5.80 | 1.14% | ||
Class I Shares | $1,000.00 | $960.20 | $5.14 |
| $1,000.00 | $1,019.96 | $5.30 | 1.04% | ||
Class S Shares | $1,000.00 | $958.60 | $6.76 |
| $1,000.00 | $1,018.30 | $6.97 | 1.37% | ||
Class T Shares | $1,000.00 | $959.90 | $5.63 |
| $1,000.00 | $1,019.46 | $5.80 | 1.14% | ||
| Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Funds prospectuses for more information regarding waivers and/or reimbursements. |
6 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks 97.6% | |||||||
Aerospace & Defense 0.2% | |||||||
Hanwha Techwin Co Ltd* | 26 | $933 | |||||
Korea Aerospace Industries Ltd* | 104 | 5,755 | |||||
6,688 | |||||||
Auto Components 1.2% | |||||||
Bharat Forge Ltd | 224 | 2,985 | |||||
Bosch Ltd | 19 | 5,870 | |||||
Cheng Shin Rubber Industry Co Ltd | 12,000 | 22,563 | |||||
Fuyao Glass Industry Group Co Ltd (144A) | 1,200 | 3,693 | |||||
Hankook Tire Co Ltd* | 40 | 1,920 | |||||
Hyundai Mobis Co Ltd* | 4 | 873 | |||||
37,904 | |||||||
Automobiles 4.6% | |||||||
Astra International Tbk PT | 16,600 | 10,154 | |||||
Bajaj Auto Ltd | 75 | 2,901 | |||||
Geely Automobile Holdings Ltd | 55,000 | 52,305 | |||||
Great Wall Motor Co Ltd | 5,000 | 4,637 | |||||
Guangzhou Automobile Group Co Ltd | 22,000 | 26,330 | |||||
Hero MotoCorp Ltd | 197 | 8,803 | |||||
Kia Motors Corp* | 69 | 2,239 | |||||
Maruti Suzuki India Ltd | 428 | 33,343 | |||||
140,712 | |||||||
Banks 11.4% | |||||||
Agricultural Bank of China Ltd | 15,000 | 6,125 | |||||
Axis Bank Ltd | 1,219 | 8,056 | |||||
Banco de Chile | 163,286 | 19,152 | |||||
Banco de Credito e Inversiones | 73 | 3,697 | |||||
Banco do Brasil SA | 100 | 857 | |||||
Banco Santander Brasil SA | 1,100 | 9,789 | |||||
Banco Santander Chile | 84,058 | 4,680 | |||||
Bank Central Asia Tbk PT | 22,300 | 25,545 | |||||
Bank Mandiri Persero Tbk PT | 1,400 | 1,197 | |||||
Bank Negara Indonesia Persero Tbk PT | 21,100 | 8,626 | |||||
Bank of China Ltd | 8,000 | 3,530 | |||||
Bank of Communications Co Ltd | 9,000 | 6,443 | |||||
Bank of the Philippine Islands | 8,930 | 15,950 | |||||
Bank Rakyat Indonesia Persero Tbk PT | 4,800 | 4,163 | |||||
BDO Unibank Inc | 940 | 2,118 | |||||
China Construction Bank Corp | 9,000 | 6,895 | |||||
China Merchants Bank Co Ltd | 1,000 | 2,324 | |||||
China Minsheng Banking Corp Ltd | 10,500 | 11,148 | |||||
Chongqing Rural Commercial Bank Co Ltd | 13,000 | 7,632 | |||||
Commercial Bank QSC | 778 | 6,944 | |||||
Credicorp Ltd | 100 | 15,786 | |||||
CTBC Financial Holding Co Ltd | 3,240 | 1,770 | |||||
Doha Bank QSC | 236 | 2,262 | |||||
Dubai Islamic Bank PJSC | 1,032 | 1,565 | |||||
E.Sun Financial Holding Co Ltd | 7,000 | 3,988 | |||||
First Financial Holding Co Ltd | 18,919 | 10,083 | |||||
First Gulf Bank PJSC | 315 | 1,102 | |||||
Hana Financial Group Inc | 199 | 5,138 | |||||
Hua Nan Financial Holdings Co Ltd | 1,000 | 503 | |||||
IDFC Bank Ltd | 5,189 | 4,587 | |||||
Industrial & Commercial Bank of China Ltd | 13,000 | 7,754 | |||||
Industrial Bank of Korea* | 314 | 3,297 | |||||
Kasikornbank PCL | 2,200 | 10,870 | |||||
KB Financial Group Inc* | 58 | 2,050 | |||||
Krung Thai Bank PCL | 10,000 | 4,927 | |||||
Masraf Al Rayan QSC | 971 | 10,022 | |||||
Nedbank Group Ltd | 181 | 3,120 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Banks (continued) | |||||||
OTP Bank PLC | 240 | $6,857 | |||||
Public Bank Bhd | 8,800 | 38,677 | |||||
Qatar Islamic Bank SAQ | 72 | 2,055 | |||||
Qatar National Bank SAQ | 227 | 10,156 | |||||
Shinhan Financial Group Co Ltd* | 56 | 2,100 | |||||
Siam Commercial Bank PCL | 1,800 | 7,635 | |||||
State Bank of India | 1,468 | 5,378 | |||||
Taishin Financial Holding Co Ltd | 13,940 | 5,092 | |||||
Taiwan Cooperative Financial Holding Co Ltd | 20,057 | 8,730 | |||||
Woori Bank* | 249 | 2,624 | |||||
Yes Bank Ltd | 900 | 15,270 | |||||
348,269 | |||||||
Beverages 0.8% | |||||||
China Resources Beer Holdings Co Ltd* | 12,000 | 23,709 | |||||
Capital Markets 0.8% | |||||||
CETIP SA - Mercados Organizados | 1,900 | 25,997 | |||||
Chemicals 2.0% | |||||||
Asian Paints Ltd | 2,159 | 28,328 | |||||
Formosa Chemicals & Fibre Corp | 1,000 | 2,977 | |||||
Petronas Chemicals Group Bhd | 700 | 1,089 | |||||
Sinopec Shanghai Petrochemical Co Ltd | 38,000 | 20,571 | |||||
UPL Ltd | 1,027 | 9,754 | |||||
62,719 | |||||||
Commercial Services & Supplies 0.1% | |||||||
S-1 Corp* | 34 | 2,466 | |||||
Construction & Engineering 0.2% | |||||||
China Railway Group Ltd | 1,000 | 818 | |||||
Hyundai Development Co-Engineering & Construction* | 42 | 1,560 | |||||
Hyundai Engineering & Construction Co Ltd* | 152 | 5,348 | |||||
7,726 | |||||||
Construction Materials 1.0% | |||||||
Ambuja Cements Ltd | 2,794 | 8,466 | |||||
Shree Cement Ltd | 61 | 13,201 | |||||
Siam Cement PCL | 300 | 4,164 | |||||
UltraTech Cement Ltd | 116 | 5,536 | |||||
31,367 | |||||||
Consumer Finance 0.6% | |||||||
Bajaj Finance Ltd | 776 | 9,628 | |||||
Samsung Card Co Ltd* | 243 | 7,982 | |||||
17,610 | |||||||
Diversified Consumer Services 2.2% | |||||||
New Oriental Education & Technology Group Inc (ADR)* | 1,300 | 54,730 | |||||
TAL Education Group (ADR)* | 200 | 14,030 | |||||
68,760 | |||||||
Diversified Financial Services 1.6% | |||||||
Ayala Corp | 250 | 3,678 | |||||
Chailease Holding Co Ltd | 4,000 | 6,829 | |||||
Far East Horizon Ltd | 11,000 | 9,393 | |||||
Fubon Financial Holding Co Ltd | 9,000 | 14,260 | |||||
GT Capital Holdings Inc | 80 | 2,044 | |||||
Metro Pacific Investments Corp | 92,300 | 12,346 | |||||
48,550 | |||||||
Diversified Telecommunication Services 9.3% | |||||||
Bharti Infratel Ltd | 701 | 3,544 | |||||
China Communications Services Corp Ltd | 16,000 | 10,183 | |||||
Chunghwa Telecom Co Ltd | 43,000 | 135,675 | |||||
Emirates Telecommunications Group Co PJSC | 14,846 | 75,922 | |||||
Ooredoo QSC | 627 | 17,530 | |||||
Telekom Malaysia Bhd | 9,600 | 12,734 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Diversified Telecommunication Services (continued) | |||||||
Telekomunikasi Indonesia Persero Tbk PT | 96,100 | $28,276 | |||||
283,864 | |||||||
Electric Utilities 1.8% | |||||||
Centrais Eletricas Brasileiras SA* | 600 | 4,191 | |||||
Centrais Eletricas Brasileiras SA - Class B* | 1,200 | 9,519 | |||||
CPFL Energia SA | 600 | 4,632 | |||||
EDP - Energias do Brasil SA | 500 | 2,053 | |||||
Equatorial Energia SA | 1,600 | 26,677 | |||||
Tenaga Nasional Bhd | 2,300 | 7,117 | |||||
54,189 | |||||||
Electrical Equipment 0.4% | |||||||
Havells India Ltd | 2,340 | 11,749 | |||||
Electronic Equipment, Instruments & Components 2.6% | |||||||
AAC Technologies Holdings Inc | 6,500 | 58,481 | |||||
AU Optronics Corp | 6,000 | 2,177 | |||||
Hon Hai Precision Industry Co Ltd | 1,000 | 2,591 | |||||
LG Display Co Ltd* | 145 | 3,744 | |||||
Sunny Optical Technology Group Co Ltd | 1,000 | 4,357 | |||||
WPG Holdings Ltd | 6,000 | 7,044 | |||||
78,394 | |||||||
Food & Staples Retailing 3.0% | |||||||
Cencosud SA | 3,470 | 9,747 | |||||
CP ALL PCL | 32,000 | 55,774 | |||||
President Chain Store Corp | 2,000 | 14,308 | |||||
Raia Drogasil SA | 600 | 11,260 | |||||
91,089 | |||||||
Food Products 2.9% | |||||||
Charoen Pokphand Foods PCL | 18,800 | 15,419 | |||||
Charoen Pokphand Indonesia Tbk PT | 26,700 | 6,105 | |||||
China Huishan Dairy Holdings Co Ltd | 55,000 | 21,331 | |||||
Indofood CBP Sukses Makmur Tbk PT | 28,700 | 18,256 | |||||
Indofood Sukses Makmur Tbk PT | 31,800 | 18,691 | |||||
Kuala Lumpur Kepong Bhd | 300 | 1,603 | |||||
M Dias Branco SA | 100 | 3,536 | |||||
Tingyi Cayman Islands Holding Corp | 4,000 | 4,842 | |||||
89,783 | |||||||
Gas Utilities 0.3% | |||||||
China Gas Holdings Ltd | 2,000 | 2,710 | |||||
GAIL India Ltd | 946 | 6,113 | |||||
8,823 | |||||||
Health Care Providers & Services 1.5% | |||||||
Bangkok Dusit Medical Services PCL | 33,000 | 21,248 | |||||
Qualicorp SA | 2,700 | 15,915 | |||||
Shanghai Pharmaceuticals Holding Co Ltd | 900 | 2,057 | |||||
Sinopharm Group Co Ltd | 1,600 | 6,565 | |||||
45,785 | |||||||
Hotels, Restaurants & Leisure 1.4% | |||||||
Jollibee Foods Corp | 5,850 | 22,783 | |||||
Minor International PCL | 18,180 | 18,153 | |||||
OPAP SA | 212 | 1,874 | |||||
42,810 | |||||||
Household Durables 0.7% | |||||||
Nien Made Enterprise Co Ltd | 2,000 | 20,499 | |||||
Household Products 0.2% | |||||||
Hindustan Unilever Ltd | 146 | 1,777 | |||||
Unilever Indonesia Tbk PT | 1,300 | 3,743 | |||||
5,520 | |||||||
Independent Power and Renewable Electricity Producers 0.7% | |||||||
Aboitiz Power Corp | 14,100 | 11,833 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Independent Power and Renewable Electricity Producers (continued) | |||||||
Engie Brasil Energia SA | 100 | $1,073 | |||||
Huaneng Renewables Corp Ltd | 30,000 | 9,704 | |||||
22,610 | |||||||
Industrial Conglomerates 1.2% | |||||||
Aboitiz Equity Ventures Inc | 15,260 | 21,737 | |||||
Berli Jucker PCL | 3,200 | 4,468 | |||||
Industries Qatar QSC | 43 | 1,387 | |||||
Samsung C&T Corp* | 23 | 2,375 | |||||
Shanghai Industrial Holdings Ltd | 2,000 | 5,397 | |||||
35,364 | |||||||
Information Technology Services 0.6% | |||||||
HCL Technologies Ltd | 979 | 11,935 | |||||
Tata Consultancy Services Ltd | 30 | 1,043 | |||||
TravelSky Technology Ltd | 3,000 | 6,282 | |||||
19,260 | |||||||
Insurance 1.7% | |||||||
Bajaj Finserv Ltd | 150 | 6,372 | |||||
Cathay Financial Holding Co Ltd | 2,000 | 2,995 | |||||
China Life Insurance Co Ltd/Taiwan | 11,040 | 10,945 | |||||
Hyundai Marine & Fire Insurance Co Ltd* | 214 | 5,572 | |||||
New China Life Insurance Co Ltd | 2,300 | 10,465 | |||||
Ping An Insurance Group Co of China Ltd | 500 | 2,488 | |||||
Qatar Insurance Co SAQ | 556 | 12,940 | |||||
51,777 | |||||||
Internet & Direct Marketing Retail 0.2% | |||||||
JD.com Inc (ADR)* | 100 | 2,544 | |||||
Vipshop Holdings Ltd (ADR)* | 200 | 2,202 | |||||
4,746 | |||||||
Internet Software & Services 3.8% | |||||||
Alibaba Group Holding Ltd (ADR)* | 200 | 17,562 | |||||
NAVER Corp* | 49 | 31,388 | |||||
NetEase Inc (ADR) | 200 | 43,068 | |||||
Tencent Holdings Ltd | 800 | 19,417 | |||||
Weibo Corp (ADR)* | 100 | 4,060 | |||||
115,495 | |||||||
Life Sciences Tools & Services 0.3% | |||||||
Divi's Laboratories Ltd | 738 | 8,501 | |||||
Machinery 1.0% | |||||||
Eicher Motors Ltd | 60 | 19,228 | |||||
Hyundai Heavy Industries Co Ltd* | 6 | 720 | |||||
Samsung Heavy Industries Co Ltd* | 198 | 1,513 | |||||
WEG SA | 1,100 | 5,218 | |||||
Weichai Power Co Ltd | 3,000 | 4,601 | |||||
31,280 | |||||||
Media 0.4% | |||||||
Zee Entertainment Enterprises Ltd | 1,731 | 11,528 | |||||
Metals & Mining 3.2% | |||||||
Cia de Minas Buenaventura SAA (ADR) | 2,400 | 27,072 | |||||
Hindalco Industries Ltd | 6,734 | 15,288 | |||||
Impala Platinum Holdings Ltd* | 632 | 1,954 | |||||
Industrias Penoles SAB de CV | 815 | 15,114 | |||||
JSW Steel Ltd* | 858 | 20,502 | |||||
MMC Norilsk Nickel PJSC (ADR) | 121 | 2,026 | |||||
Severstal PJSC (GDR) | 281 | 4,261 | |||||
Vedanta Ltd | 4,086 | 12,946 | |||||
99,163 | |||||||
Multiline Retail 0.2% | |||||||
SACI Falabella | 717 | 5,677 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Multi-Utilities 0.1% | |||||||
Qatar Electricity & Water Co QSC | 31 | $1,933 | |||||
Oil, Gas & Consumable Fuels 4.6% | |||||||
Adaro Energy Tbk PT | 39,300 | 4,934 | |||||
Bharat Petroleum Corp Ltd | 2,098 | 19,612 | |||||
Cairn India Ltd | 1,586 | 5,645 | |||||
Coal India Ltd | 2,823 | 12,461 | |||||
Empresas COPEC SA | 101 | 969 | |||||
GS Holdings Corp* | 75 | 3,348 | |||||
Hindustan Petroleum Corp Ltd | 1,483 | 9,607 | |||||
IRPC PCL | 40,600 | 5,430 | |||||
LUKOIL PJSC (ADR) | 247 | 13,832 | |||||
MOL Hungarian Oil & Gas PLC | 94 | 6,602 | |||||
Novatek PJSC (GDR) | 18 | 2,332 | |||||
Polski Koncern Naftowy ORLEN SA | 266 | 5,422 | |||||
PTT PCL | 500 | 5,181 | |||||
Qatar Gas Transport Co Ltd | 3,490 | 22,104 | |||||
Reliance Industries Ltd | 484 | 7,709 | |||||
Thai Oil PCL | 2,200 | 4,428 | |||||
Ultrapar Participacoes SA | 200 | 4,154 | |||||
United Tractors Tbk PT | 4,500 | 7,093 | |||||
140,863 | |||||||
Paper & Forest Products 0.3% | |||||||
Fibria Celulose SA | 100 | 961 | |||||
Nine Dragons Paper Holdings Ltd | 8,000 | 7,226 | |||||
Sappi Ltd | 163 | 1,064 | |||||
9,251 | |||||||
Personal Products 0.4% | |||||||
Dabur India Ltd | 1,067 | 4,372 | |||||
Godrej Consumer Products Ltd | 62 | 1,378 | |||||
Marico Ltd | 1,676 | 6,426 | |||||
12,176 | |||||||
Pharmaceuticals 3.7% | |||||||
China Medical System Holdings Ltd | 11,000 | 17,355 | |||||
Cipla Ltd/India | 1,478 | 12,392 | |||||
CSPC Pharmaceutical Group Ltd | 18,000 | 19,147 | |||||
Dr Reddy's Laboratories Ltd | 46 | 2,073 | |||||
Glenmark Pharmaceuticals Ltd | 547 | 7,152 | |||||
Kalbe Farma Tbk PT | 217,900 | 24,354 | |||||
Lupin Ltd | 80 | 1,751 | |||||
Piramal Enterprises Ltd | 744 | 17,727 | |||||
Richter Gedeon Nyrt | 465 | 9,823 | |||||
Sun Pharmaceutical Industries Ltd | 251 | 2,318 | |||||
114,092 | |||||||
Real Estate Management & Development 3.5% | |||||||
Aldar Properties PJSC | 16,957 | 12,144 | |||||
Ayala Land Inc | 4,900 | 3,151 | |||||
Central Pattana PCL | 13,500 | 21,317 | |||||
China Vanke Co Ltd | 2,400 | 5,426 | |||||
Country Garden Holdings Co Ltd | 33,000 | 18,376 | |||||
Emaar Properties PJSC | 544 | 1,053 | |||||
Fullshare Holdings Ltd | 20,000 | 9,311 | |||||
Guangzhou R&F Properties Co Ltd | 3,600 | 4,351 | |||||
Highwealth Construction Corp | 8,000 | 11,240 | |||||
Pakuwon Jati Tbk PT | 13,100 | 547 | |||||
Shanghai Lujiazui Finance & Trade Zone Development Co Ltd | 6,000 | 8,784 | |||||
SM Prime Holdings Inc | 22,700 | 12,922 | |||||
108,622 | |||||||
Road & Rail 1.1% | |||||||
BTS Group Holdings PCL | 73,000 | 17,379 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Road & Rail (continued) | |||||||
Localiza Rent a Car SA | 400 | $4,191 | |||||
Rumo Logistica Operadora Multimodal SA* | 6,800 | 12,754 | |||||
34,324 | |||||||
Semiconductor & Semiconductor Equipment 3.9% | |||||||
Hanergy Thin Film Power Group Ltd*,ß | 52,000 | 1,348 | |||||
Powertech Technology Inc | 6,000 | 16,134 | |||||
Realtek Semiconductor Corp | 7,000 | 22,014 | |||||
Semiconductor Manufacturing International Corp* | 10,700 | 16,719 | |||||
Siliconware Precision Industries Co Ltd | 14,000 | 20,762 | |||||
SK Hynix Inc* | 1,018 | 37,217 | |||||
Vanguard International Semiconductor Corp | 3,000 | 5,202 | |||||
119,396 | |||||||
Software 0.4% | |||||||
Kingsoft Corp Ltd | 1,000 | 2,037 | |||||
NCSoft Corp* | 48 | 9,816 | |||||
11,853 | |||||||
Technology Hardware, Storage & Peripherals 2.2% | |||||||
Foxconn Technology Co Ltd | 7,030 | 18,442 | |||||
Inventec Corp | 12,000 | 8,173 | |||||
Lite-On Technology Corp | 15,074 | 22,529 | |||||
Micro-Star International Co Ltd | 2,000 | 4,526 | |||||
Pegatron Corp | 1,000 | 2,359 | |||||
Quanta Computer Inc | 3,000 | 5,583 | |||||
Samsung Electronics Co Ltd | 1 | 1,478 | |||||
Wistron Corp | 6,000 | 4,617 | |||||
67,707 | |||||||
Textiles, Apparel & Luxury Goods 1.2% | |||||||
ANTA Sports Products Ltd | 2,000 | 5,930 | |||||
HengTen Networks Group Ltd* | 72,000 | 3,595 | |||||
Shenzhou International Group Holdings Ltd | 4,000 | 25,193 | |||||
Titan Co Ltd | 628 | 3,013 | |||||
37,731 | |||||||
Thrifts & Mortgage Finance 0.3% | |||||||
Housing Development Finance Corp Ltd | 326 | 6,061 | |||||
LIC Housing Finance Ltd | 387 | 3,186 | |||||
9,247 | |||||||
Tobacco 2.3% | |||||||
ITC Ltd | 2,705 | 9,611 | |||||
KT&G Corp* | 727 | 60,776 | |||||
70,387 | |||||||
Transportation Infrastructure 3.1% | |||||||
Airports of Thailand PCL | 3,300 | 36,615 | |||||
Bangkok Expressway & Metro PCL | 57,800 | 11,964 | |||||
Beijing Capital International Airport Co Ltd | 16,000 | 16,142 | |||||
COSCO SHIPPING Ports Ltd | 14,000 | 14,029 | |||||
Grupo Aeroportuario del Pacifico SAB de CV | 400 | 3,289 | |||||
Grupo Aeroportuario del Sureste SAB de CV | 35 | 504 | |||||
Jiangsu Expressway Co Ltd | 10,000 | 12,609 | |||||
95,152 | |||||||
Water Utilities 1.8% | |||||||
Aguas Andinas SA | 32,821 | 17,101 | |||||
Beijing Enterprises Water Group Ltd* | 4,000 | 2,638 | |||||
Guangdong Investment Ltd | 28,000 | 36,751 | |||||
56,490 | |||||||
Wireless Telecommunication Services 4.6% | |||||||
China Mobile Ltd | 2,500 | 26,216 | |||||
Empresa Nacional de Telecomunicaciones SA* | 597 | 6,339 | |||||
Far EasTone Telecommunications Co Ltd | 18,000 | 40,469 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
12 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Wireless Telecommunication Services (continued) | |||||||
Taiwan Mobile Co Ltd | 21,000 | $67,701 | |||||
140,725 | |||||||
Total Common Stocks (cost $3,055,164) | 2,990,332 | ||||||
Preferred Stocks 0.9% | |||||||
Automobiles 0.1% | |||||||
Hyundai Motor Co | 9 | 712 | |||||
Hyundai Motor Co (2nd Preference) | 40 | 3,273 | |||||
3,985 | |||||||
Banks 0% | |||||||
Itau Unibanco Holding SA | 100 | 1,032 | |||||
Chemicals 0.3% | |||||||
Braskem SA | 400 | 4,244 | |||||
Sociedad Quimica y Minera de Chile SA | 157 | 4,478 | |||||
8,722 | |||||||
Electric Utilities 0.1% | |||||||
Cia Energetica de Minas Gerais | 800 | 1,828 | |||||
Metals & Mining 0.1% | |||||||
Gerdau SA | 1,000 | 3,150 | |||||
Vale SA | 200 | 1,380 | |||||
4,530 | |||||||
Multiline Retail 0.3% | |||||||
Lojas Americanas SA | 1,700 | 8,838 | |||||
Total Preferred Stocks (cost $30,891) | 28,935 | ||||||
Rights 0% | |||||||
Banks 0% | |||||||
Commercial Bank QSC*,ß (cost $0) | 140 | 269 | |||||
Investment Companies 1.7% | |||||||
Money Markets 1.7% | |||||||
Janus Cash Liquidity Fund LLC, 0.4708%ºº,£ (cost $52,000) | 52,000 | 52,000 | |||||
Total Investments (total cost $3,138,055) 100.2% | 3,071,536 | ||||||
Liabilities, net of Cash, Receivables and Other Assets (0.2)% | (6,617) | ||||||
Net Assets 100% | $3,064,919 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 13 |
INTECH Emerging Markets Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
% of Investment Securities | |||||
Country | Value | ||||
China | $753,566 | 24.5 | % | ||
Taiwan | 522,780 | 17.0 | |||
India | 425,126 | 13.8 | |||
Thailand | 244,972 | 8.0 | |||
South Korea | 206,217 | 6.7 | |||
Brazil | 163,249 | 5.3 | |||
Indonesia | 161,684 | 5.3 | |||
Philippines | 108,562 | 3.5 | |||
United Arab Emirates | 91,786 | 3.0 | |||
Qatar | 87,602 | 2.9 | |||
Chile | 71,840 | 2.3 | |||
Malaysia | 61,220 | 2.0 | |||
United States | 52,000 | 1.7 | |||
Peru | 42,858 | 1.4 | |||
Hungary | 23,282 | 0.8 | |||
Russia | 22,451 | 0.7 | |||
Mexico | 18,907 | 0.6 | |||
South Africa | 6,138 | 0.2 | |||
Poland | 5,422 | 0.2 | |||
Greece | 1,874 | 0.1 |
Total | $3,071,536 | 100.0 | % |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
14 | DECEMBER 31, 2016 |
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 |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended December 31, 2016 is $3,693, which represents 0.1% of net assets. |
* | Non-income producing security. |
ß | Security is illiquid. |
ºº | Rate shown is the 7-day yield as of December 31, 2016. |
£ | 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, 2016. Unless otherwise indicated, all information in the table is for the period ended December 31, 2016. |
Share | Share | |||||||||||||
Balance | Balance | Realized | Dividend | Value | ||||||||||
at 6/30/16 | Purchases | Sales | at 12/31/16 | Gain/(Loss) | Income | at 12/31/16 | ||||||||
Janus Cash Liquidity Fund LLC | 27,081 | 1,729,113 | (1,704,194) | 52,000 | $ | $123 | $52,000 |
Janus Investment Fund | 15 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Schedule of Investments and Other Information (unaudited)
The following is a summary of the inputs that were used to value the Funds investments in securities and other financial instruments as of December 31, 2016. See Notes to Financial Statements for more information. | ||||||||||||
Valuation Inputs Summary | ||||||||||||
Level 2 - | Level 3 - | |||||||||||
Level 1 - | Other Significant | Significant | ||||||||||
Quotes Prices | Observable Inputs | Unobservable Inputs | ||||||||||
Assets | ||||||||||||
Investments in Securities | ||||||||||||
Common Stocks | ||||||||||||
Banks | $ | 15,786 | $ | 332,483 | $ | - | ||||||
Diversified Consumer Services | 68,760 | - | - | |||||||||
Internet & Direct Marketing Retail | 4,746 | - | - | |||||||||
Internet Software & Services | 64,690 | 50,805 | - | |||||||||
Metals & Mining | 33,359 | 65,804 | - | |||||||||
Oil, Gas & Consumable Fuels | 16,164 | 124,699 | - | |||||||||
Real Estate Management & Development | 8,784 | 99,838 | - | |||||||||
Semiconductor & Semiconductor Equipment | - | 118,048 | 1,348 | |||||||||
All Other | - | 1,985,018 | - | |||||||||
Preferred Stocks | - | 28,935 | - | |||||||||
Rights | - | 269 | - | |||||||||
Investment Companies | - | 52,000 | - | |||||||||
Total Assets | $ | 212,289 | $ | 2,857,899 | $ | 1,348 | ||||||
16 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2016
See footnotes at the end of the Statement. |
|
|
|
|
|
|
|
Assets: | ||||||
Investments, at cost | $ | 3,138,055 | ||||
Unaffiliated investments, at value | 3,019,536 | |||||
Affiliated investments, at value | 52,000 | |||||
Cash | 969 | |||||
Cash denominated in foreign currency(1) | 127 | |||||
Non-interested Trustees' deferred compensation | 57 | |||||
Receivables: | ||||||
Due from adviser | 39,823 | |||||
Fund shares sold | 10,437 | |||||
Dividends | 5,444 | |||||
Other assets | 55 | |||||
Total Assets |
|
| 3,128,448 |
| ||
Liabilities: | ||||||
Payables: | | |||||
Investments purchased | 19,344 | |||||
Professional fees | 17,539 | |||||
Fund shares repurchased | 7,767 | |||||
Custodian fees | 6,391 | |||||
Accounting systems fees | 4,023 | |||||
Advisory fees | 2,670 | |||||
Printing fees | 2,649 | |||||
Transfer agent fees and expenses | 586 | |||||
12b-1 Distribution and shareholder servicing fees | 82 | |||||
Non-interested Trustees' deferred compensation fees | 57 | |||||
Fund administration fees | 27 | |||||
Non-interested Trustees' fees and expenses | 24 | |||||
Accrued expenses and other payables | 2,370 | |||||
Total Liabilities |
|
| 63,529 |
| ||
Net Assets |
| $ | 3,064,919 |
|
See Notes to Financial Statements. | |
Janus Investment Fund | 17 |
INTECH Emerging Markets Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2016
|
|
|
|
|
|
|
Net Assets Consist of: | ||||||
Capital (par value and paid-in surplus) | $ | 3,421,096 | ||||
Undistributed net investment income/(loss) | 3,640 | |||||
Undistributed net realized gain/(loss) from investments and foreign currency transactions | (293,305) | |||||
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees deferred compensation | (66,512) | |||||
Total Net Assets |
| $ | 3,064,919 |
| ||
Net Assets - Class A Shares | $ | 138,767 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 15,425 | |||||
Net Asset Value Per Share(2) |
| $ | 9.00 |
| ||
Maximum Offering Price Per Share(3) |
| $ | 9.55 |
| ||
Net Assets - Class C Shares | $ | 45,527 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,057 | |||||
Net Asset Value Per Share(2) |
| $ | 9.00 |
| ||
Net Assets - Class D Shares | $ | 1,912,718 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 212,680 | |||||
Net Asset Value Per Share |
| $ | 8.99 |
| ||
Net Assets - Class I Shares | $ | 774,620 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 86,121 | |||||
Net Asset Value Per Share |
| $ | 8.99 |
| ||
Net Assets - Class S Shares | $ | 46,148 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,127 | |||||
Net Asset Value Per Share |
| $ | 9.00 |
| ||
Net Assets - Class T Shares | $ | 147,139 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 16,350 | |||||
Net Asset Value Per Share |
| $ | 9.00 |
|
(1) Includes cost of $127. (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. | |
18 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Statement of Operations (unaudited)
For the period ended December 31, 2016
|
|
|
|
|
|
Investment Income: | |||||
| Dividends | $ | 32,117 | ||
Dividends from affiliates | 123 | ||||
Foreign tax withheld | (4,618) | ||||
Total Investment Income |
| 27,622 |
| ||
Expenses: | |||||
Advisory fees | 15,292 | ||||
12b-1Distribution and shareholder servicing fees: | |||||
Class A Shares | 187 | ||||
Class C Shares | 247 | ||||
Class S Shares | 62 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 1,188 | ||||
Class S Shares | 62 | ||||
Class T Shares | 225 | ||||
Transfer agent networking and omnibus fees: | |||||
Class I Shares | 164 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 14 | ||||
Class D Shares | 554 | ||||
Class I Shares | 121 | ||||
Class T Shares | 25 | ||||
Registration fees | 97,111 | ||||
Custodian fees | 19,798 | ||||
Professional fees | 19,393 | ||||
Accounting systems fee | 11,612 | ||||
Shareholder reports expense | 1,290 | ||||
Fund administration fees | 152 | ||||
Non-interested Trustees fees and expenses | 59 | ||||
Other expenses | 65 | ||||
Total Expenses |
| 167,621 |
| ||
Less: Excess Expense Reimbursement |
| (149,484) |
| ||
Net Expenses |
| 18,137 |
| ||
Net Investment Income/(Loss) |
| 9,485 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments and foreign currency transactions | (95,160) | ||||
Total Net Realized Gain/(Loss) on Investments |
| (95,160) |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments, foreign currency translations and non-interested Trustees deferred compensation | (102,680) | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| (102,680) |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (188,355) |
| ||
See Notes to Financial Statements. | |
Janus Investment Fund | 19 |
INTECH Emerging Markets Managed Volatility Fund
Statements of Changes in Net Assets
|
|
| Period
ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 9,485 | $ | 41,111 | ||||
Net realized gain/(loss) on investments | (95,160) | (204,117) | ||||||
Change in unrealized net appreciation/depreciation | (102,680) | 50,026 | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| (188,355) |
|
| (112,980) | |||
Dividends and Distributions to Shareholders: | ||||||||
Dividends from Net Investment Income | ||||||||
Class A Shares | (1,470) | (1,177) | ||||||
Class C Shares | (105) | (20) | ||||||
Class D Shares | (22,736) | (9,709) | ||||||
Class I Shares | (10,436) | (3,366) | ||||||
Class S Shares | (441) | (309) | ||||||
Class T Shares | (1,747) | (1,423) | ||||||
| Total Dividends from Net Investment Income |
| (36,935) |
|
| (16,004) | ||
Distributions from Net Realized Gain from Investment Transactions | ||||||||
Class A Shares | | (1,145) | ||||||
Class C Shares | | (382) | ||||||
Class D Shares | | (8,595) | ||||||
Class I Shares | | (2,530) | ||||||
Class S Shares | | (382) | ||||||
Class T Shares | | (1,258) | ||||||
| Total Distributions from Net Realized Gain from Investment Transactions | |
|
| (14,292) | |||
Net Decrease from Dividends and Distributions to Shareholders |
| (36,935) |
|
| (30,296) | |||
Capital Share Transactions: | ||||||||
Class A Shares | 1,470 | 2,323 | ||||||
Class C Shares | 105 | 402 | ||||||
Class D Shares | 579,024 | 252,056 | ||||||
Class I Shares | 161,549 | 361,614 | ||||||
Class S Shares | 441 | 690 | ||||||
Class T Shares | (18,728) | 21,169 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| 723,861 |
|
| 638,254 | |||
Net Increase/(Decrease) in Net Assets |
| 498,571 |
|
| 494,978 | |||
Net Assets: | ||||||||
Beginning of period | 2,566,348 | 2,071,370 | ||||||
| End of period | $ | 3,064,919 |
| $ | 2,566,348 | ||
Undistributed Net Investment Income/(Loss) | $ | 3,640 |
| $ | 31,090 |
See Notes to Financial Statements. | |
20 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Financial Highlights
Class A Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and the year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $9.48 |
|
| $10.49 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.03 | 0.18 | 0.06 | |||||||||
Net realized and unrealized gain/(loss) | (0.41) | (1.03) | 0.43 | |||||||||
Total from Investment Operations |
| (0.38) |
|
| (0.85) |
|
| 0.49 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.10) | (0.08) | | |||||||||
Distributions (from capital gains) | | (0.08) | | |||||||||
Total Dividends and Distributions |
| (0.10) |
|
| (0.16) |
|
| |
| |||
Net Asset Value, End of Period | $9.00 | $9.48 | $10.49 | |||||||||
Total Return* |
| (4.03)% |
|
| (8.06)% |
|
| 4.90% |
| |||
Net Assets, End of Period (in thousands) | $139 | $145 | $157 | |||||||||
Average Net Assets for the Period (in thousands) | $147 | $140 | $159 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 10.34% | 10.33% | 36.27% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.24% | 1.30% | 1.31% | |||||||||
Ratio of Net Investment Income/(Loss) | 0.61% | 1.89% | 1.05% | |||||||||
Portfolio Turnover Rate | 70% | 84% | 43% | |||||||||
Class C Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and the year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $9.44 |
|
| $10.44 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | (0.01) | 0.10 | 0.02 | |||||||||
Net realized and unrealized gain/(loss) | (0.41) | (1.02) | 0.42 | |||||||||
Total from Investment Operations |
| (0.42) |
|
| (0.92) |
|
| 0.44 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.02) | (3) | | |||||||||
Distributions (from capital gains) | | (0.08) | | |||||||||
Total Dividends and Distributions |
| (0.02) |
|
| (0.08) |
|
| |
| |||
Net Asset Value, End of Period | $9.00 | $9.44 | $10.44 | |||||||||
Total Return* |
| (4.44)% |
|
| (8.77)% |
|
| 4.40% |
| |||
Net Assets, End of Period (in thousands) | $46 | $48 | $52 | |||||||||
Average Net Assets for the Period (in thousands) | $48 | $46 | $53 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 11.10% | 11.11% | 37.08% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 2.00% | 2.08% | 2.09% | |||||||||
Ratio of Net Investment Income/(Loss) | (0.15)% | 1.11% | 0.27% | |||||||||
Portfolio Turnover Rate | 70% | 84% | 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. | |
Janus Investment Fund | 21 |
INTECH Emerging Markets Managed Volatility Fund
Financial Highlights
Class D Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and the year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $9.49 |
|
| $10.49 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.03 | 0.19 | 0.08 | |||||||||
Net realized and unrealized gain/(loss) | (0.42) | (1.02) | 0.41 | |||||||||
Total from Investment Operations |
| (0.39) |
|
| (0.83) |
|
| 0.49 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.11) | (0.09) | | |||||||||
Distributions (from capital gains) | | (0.08) | | |||||||||
Total Dividends and Distributions |
| (0.11) |
|
| (0.17) |
|
| |
| |||
Net Asset Value, End of Period | $8.99 | $9.49 | $10.49 | |||||||||
Total Return* |
| (4.09)% |
|
| (7.89)% |
|
| 4.90% |
| |||
Net Assets, End of Period (in thousands) | $1,913 | $1,488 | $1,335 | |||||||||
Average Net Assets for the Period (in thousands) | $1,943 | $1,194 | $1,037 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 10.64% | 10.26% | 27.16% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.14% | 1.19% | 1.23% | |||||||||
Ratio of Net Investment Income/(Loss) | 0.55% | 2.08% | 1.38% | |||||||||
Portfolio Turnover Rate | 70% | 84% | 43% | |||||||||
Class I Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and the year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $9.49 |
|
| $10.50 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.04 | 0.21 | 0.10 | |||||||||
Net realized and unrealized gain/(loss) | (0.42) | (1.04) | 0.40 | |||||||||
Total from Investment Operations |
| (0.38) |
|
| (0.83) |
|
| 0.50 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.12) | (0.10) | | |||||||||
Distributions (from capital gains) | | (0.08) | | |||||||||
Total Dividends and Distributions |
| (0.12) |
|
| (0.18) |
|
| |
| |||
Net Asset Value, End of Period | $8.99 | $9.49 | $10.50 | |||||||||
Total Return* |
| (3.98)% |
|
| (7.82)% |
|
| 5.00% |
| |||
Net Assets, End of Period (in thousands) | $775 | $664 | $305 | |||||||||
Average Net Assets for the Period (in thousands) | $795 | $391 | $181 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 10.30% | 9.29% | 27.37% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.04% | 1.04% | 1.05% | |||||||||
Ratio of Net Investment Income/(Loss) | 0.73% | 2.30% | 1.79% | |||||||||
Portfolio Turnover Rate | 70% | 84% | 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. | |
22 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Financial Highlights
Class S Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and the year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $9.48 |
|
| $10.47 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.02 | 0.17 | 0.04 | |||||||||
Net realized and unrealized gain/(loss) | (0.41) | (1.02) | 0.43 | |||||||||
Total from Investment Operations |
| (0.39) |
|
| (0.85) |
|
| 0.47 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.09) | (0.06) | | |||||||||
Distributions (from capital gains) | | (0.08) | | |||||||||
Total Dividends and Distributions |
| (0.09) |
|
| (0.14) |
|
| |
| |||
Net Asset Value, End of Period | $9.00 | $9.48 | $10.47 | |||||||||
Total Return* |
| (4.14)% |
|
| (8.06)% |
|
| 4.70% |
| |||
Net Assets, End of Period (in thousands) | $46 | $48 | $52 | |||||||||
Average Net Assets for the Period (in thousands) | $49 | $47 | $53 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 10.60% | 10.55% | 36.54% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.37% | 1.33% | 1.58% | |||||||||
Ratio of Net Investment Income/(Loss) | 0.47% | 1.87% | 0.78% | |||||||||
Portfolio Turnover Rate | 70% | 84% | 43% | |||||||||
Class T Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and the year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $9.49 |
|
| $10.49 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.03 | 0.19 | 0.06 | |||||||||
Net realized and unrealized gain/(loss) | (0.41) | (1.02) | 0.43 | |||||||||
Total from Investment Operations |
| (0.38) |
|
| (0.83) |
|
| 0.49 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.11) | (0.09) | | |||||||||
Distributions (from capital gains) | | (0.08) | | |||||||||
Total Dividends and Distributions |
| (0.11) |
|
| (0.17) |
|
| |
| |||
Net Asset Value, End of Period | $9.00 | $9.49 | $10.49 | |||||||||
Total Return* |
| (4.01)% |
|
| (7.89)% |
|
| 4.90% |
| |||
Net Assets, End of Period (in thousands) | $147 | $175 | $169 | |||||||||
Average Net Assets for the Period (in thousands) | $177 | $155 | $165 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 10.22% | 10.26% | 35.55% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.14% | 1.11% | 1.32% | |||||||||
Ratio of Net Investment Income/(Loss) | 0.69% | 2.10% | 1.07% | |||||||||
Portfolio Turnover Rate | 70% | 84% | 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 | 23 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 seeks long-term growth of capital. 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 D Shares are closed to certain new investors.
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
24 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Financial Statements (unaudited)
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, 2016 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, 2016.
The Fund recognizes transfers between the levels as of the beginning of the fiscal year. The following describes the amounts of transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period.
Financial assets of $88,795 were transferred out of Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the current period and no factor was applied at the end of the prior fiscal year.
Janus Investment Fund | 25 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Financial Statements (unaudited)
Financial assets of $9,410 were transferred out of Level 2 to Level 1 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the prior fiscal year and no factor was applied at the end of the current period.
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, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with 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 the 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 Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (REITs) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If
26 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 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. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU (known as Brexit). One or more other countries may also 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,
Janus Investment Fund | 27 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Financial Statements (unaudited)
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.
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.
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.
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).
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 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
28 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Financial Statements (unaudited)
commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 1.08% of the Funds average daily net assets. Janus Capital shall additionally reimburse or waive acquired fund fees and expenses related to exposure to India local market securities from investments in exchange-traded funds. Janus Capital has agreed to continue the waiver until at least November 1, 2017. 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, 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
Janus Investment Fund | 29 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Financial Statements (unaudited)
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). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund also pays for some or all of 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. Some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $329,069 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2016. 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, 2016 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, 2016 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 $181,750 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2016.
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, 2016 can be found in a table located in the Notes to Schedule of Investments and Other Information.
30 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Financial Statements (unaudited)
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. There were no upfront sales charges retained by Janus Distributors during the period ended December 31, 2016.
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, 2016.
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, 2016.
As of December 31, 2016, 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 | % | 5 | % | |
Class C Shares | 100 | 1 | |||
Class D Shares | 24 | 15 | |||
Class I Shares | 12 | 3 | |||
Class S Shares | 100 | 2 | |||
Class T Shares | 95 | 5 | |||
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.
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2016, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
Capital Loss Carryover Schedule | |||||
For the year ended June 30, 2016 | |||||
No Expiration | |||||
Short-Term | Long-Term | Accumulated | |||
$ (174,392) | $ (22,035) | $ (196,427)(1) | |||
(1) Capital loss carryovers subject to annual limitations, $(57,743) should be available in the next fiscal year. |
Janus Investment Fund | 31 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Financial Statements (unaudited)
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2016 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 passive foreign investment companies.
Federal Tax Cost | Unrealized | Unrealized | Net
Tax Appreciation/ |
$ 3,140,730 | $ 101,683 | $ (170,877) | $ (69,194) |
5. Capital Share Transactions
Period ended December 31, 2016 | Year ended June 30, 2016 | |||||
Shares | Amount | Shares | Amount | |||
Class A Shares: | ||||||
Shares sold | - | $ - | - | $ - | ||
Reinvested dividends and distributions | 165 | 1,470 | 260 | 2,323 | ||
Shares repurchased | - | - | - | - | ||
Net Increase/(Decrease) | 165 | $ 1,470 |
| 260 | $ 2,323 | |
Class C Shares: | ||||||
Shares sold | - | $ - | - | $ - | ||
Reinvested dividends and distributions | 12 | 105 | 45 | 402 | ||
Shares repurchased | - | - | - | - | ||
Net Increase/(Decrease) | 12 | $ 105 |
| 45 | $ 402 | |
Class D Shares: | ||||||
Shares sold | 113,645 | $1,115,279 | 71,593 | $654,959 | ||
Reinvested dividends and distributions | 2,557 | 22,730 | 2,040 | 18,218 | ||
Shares repurchased | (60,366) | (558,985) | (44,043) | (421,121) | ||
Net Increase/(Decrease) | 55,836 | $ 579,024 |
| 29,590 | $252,056 | |
Class I Shares: | ||||||
Shares sold | 21,065 | $ 208,003 | 43,496 | $386,213 | ||
Reinvested dividends and distributions | 1,174 | 10,436 | 660 | 5,896 | ||
Shares repurchased | (6,028) | (56,890) | (3,278) | (30,495) | ||
Net Increase/(Decrease) | 16,211 | $ 161,549 |
| 40,878 | $361,614 | |
Class S Shares: | ||||||
Shares sold | - | $ - | - | $ - | ||
Reinvested dividends and distributions | 50 | 441 | 77 | 690 | ||
Shares repurchased | - | - | - | - | ||
Net Increase/(Decrease) | 50 | $ 441 |
| 77 | $ 690 | |
Class T Shares: | ||||||
Shares sold | 457 | $ 4,512 | 3,095 | $ 28,726 | ||
Reinvested dividends and distributions | 197 | 1,747 | 300 | 2,681 | ||
Shares repurchased | (2,705) | (24,987) | (1,139) | (10,238) | ||
Net Increase/(Decrease) | (2,051) | $ (18,728) |
| 2,256 | $ 21,169 |
6. Purchases and Sales of Investment Securities
For the period ended December 31, 2016, 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 |
$ 2,799,798 | $ 2,142,859 | $ - | $ - |
32 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Financial Statements (unaudited)
7. Merger Related Matters
On October 3, 2016, Janus Capital Group Inc. (JCGI), the direct parent of Janus Capital Management LLC, the investment adviser to the Fund (Janus Capital), and Henderson Group plc (Henderson) announced that they had entered into an Agreement and Plan of Merger (Merger Agreement) relating to the strategic combination of Henderson and JCGI (the Transaction). Pursuant to the Merger Agreement, a newly formed, direct wholly-owned subsidiary of Henderson will merge with and into JCGI, with JCGI as the surviving corporation and a direct wholly-owned subsidiary of Henderson. The Transaction is currently expected to close in the second quarter of 2017, subject to requisite shareholder and regulatory approvals.
The consummation of the Transaction may be deemed to be an assignment (as defined in the Investment Company Act of 1940, as amended) of the current advisory agreement between Janus Capital and the Fund. In addition, the consummation of the Transaction may be deemed to be an assignment of the current sub-advisory agreements between Janus Capital and each of INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins), the subadvisers to certain funds. As a result, the consummation of the Transaction may cause such investment advisory agreements and investment sub-advisory agreements to terminate automatically in accordance with their respective terms.
On December 8, 2016, the Board of Trustees of the Fund (the Board of Trustees) approved, subject to approval of shareholders, a new investment advisory agreement between the Fund and Janus Capital in order to permit Janus Capital to continue to provide advisory services to the Fund following the closing of the Transaction. The new investment advisory agreement will have substantially similar terms as the corresponding current investment advisory agreement.
On December 8, 2016, the Board of Trustees approved, subject to approval of shareholders, a new investment sub-advisory agreement between Janus Capital and INTECH in order to permit INTECH to continue to provide sub-advisory services with respect to the Fund following the closing of the Transaction. The new investment sub-advisory agreement will have substantially similar terms as the corresponding current investment sub-advisory agreement.
On December 8, 2016, the Board of Trustees also approved interim investment advisory agreements between the Fund and Janus Capital and interim sub-advisory agreements between Janus Capital and the Funds subadviser, as applicable. In the event shareholders of the Fund do not approve the new investment advisory agreement (and, if applicable, the new investment sub-advisory agreement) prior to the closing of the Transaction, an interim investment advisory agreement (and, if applicable, an interim investment sub-advisory agreement) will take effect with respect to the Fund upon the closing of the Transaction. Such interim agreements will continue in effect for a term ending on the earlier of 150 days from the closing of the Transaction, or when shareholders of the Fund approve the new investment advisory agreement and new investment sub-advisory agreement, if applicable. Compensation earned by Janus Capital and the Funds subadviser, if applicable, under their respective interim investment advisory agreement or interim investment sub-advisory agreement will be held in an interest-bearing escrow account and will be paid to Janus Capital or the subadviser, as applicable, if shareholders approve the corresponding new investment advisory agreement or new investment sub-advisory agreement prior to the end of the interim period. Except for the term and escrow provisions described above, the terms of each interim investment advisory agreement and interim investment subadvisory agreement are substantially similar to those of the corresponding current investment advisory agreement or current investment sub-advisory agreement.
In addition, the Funds name will change to reflect Janus Henderson as part of the Funds name.
Shareholders of record of the Fund as of December 29, 2016, will receive a proxy statement, notice of special meeting of shareholders, and proxy card, containing detailed information regarding shareholder proposals with respect to these and certain other matters. The shareholder meeting is expected to be held on or about April 6, 2017.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2016 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 | 33 |
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 and Sub-Advisory Agreements with Janus and Janus Affiliates during the Period
On September 15, 2016, Janus Capital Group Inc. (Janus) advised the Trustees of Janus Investment Fund (the Trust), each of whom serves as an independent Trustee (the Board or the Trustees), of its intent to seek a strategic combination of its advisory business with Henderson Group plc (Henderson). The Board met with the Chief Executive Officer of Janus, who outlined the proposed combination and the potential benefits to Janus Capital Management LLC (Janus Capital) and each Fund of the Trust (each, a Fund and collectively, the Funds). Subsequent to the September 15, 2016 meeting, the Trustees identified a list of basic principles, which they believed should serve as the foundation for their review of the organizational, operational and strategic issues involved with any potential change in control of Janus Capital, the investment adviser to the Funds. These basic principles were communicated to Janus Capital on September 27, 2016, and were intended to be shared with Henderson. On October 3, 2016, Janus announced that it had entered into a definitive Agreement and Plan of Merger with Henderson pursuant to which Janus and Henderson agreed to effect an all-stock merger of equals strategic combination of their respective businesses, with Janus Capital surviving the merger as a direct wholly-owned subsidiary of Henderson (the Transaction). The Board was advised that, subject to certain conditions, the Transaction is currently expected to close during the second quarter of 2017.
As part of its due diligence, the Board developed an initial list of questions related to the proposed transaction, which was provided to Janus Capital on October 6, 2016. At a special Board meeting held on October 19, 2016, the Board considered Janus Capitals response to the initial information request and met with the management of Janus to discuss the impact of the Transaction on the nature, extent and quality of services Janus Capital is expected to provide to the Janus Funds following the Transaction, addressing, among other matters, the personnel expected to provide such services, and the resources available to do so. After its October 19, 2016 meeting, the Board developed a supplemental request for additional information, which was provided to Janus Capital on October 26, 2016. At another special Board meeting held on November 7-8, 2016, the Board considered Janus Capitals response to the supplemental information request and again met with the management of Janus and Henderson to discuss the impact of the Transaction on the nature, extent and quality of services Janus Capital is expected to provide to the Janus Funds following the Transaction, and also met with various officers of the Funds and of Janus Capital, including various Fund portfolio managers. After its November 7-8, 2016 meeting, the Board developed a second supplemental request for additional information, which was provided to Janus Capital on November 21, 2016. On December 7-8, 2016, the Board met to consider Janus Capitals response to the second supplemental information request and to also consider the proposed new investment advisory agreements between the Trust, on behalf of each Fund, and Janus Capital (each, a New Advisory Agreement and collectively, the New Advisory Agreements) and the new sub-advisory agreements between Janus Capital and each of the Funds that utilize INTECH Investment Management LLC (INTECH), Perkins Investment Management LLC (Perkins), or Janus Singapore Pte. Limited (Janus Singapore, and together with INTECH and Perkins, the Sub-Advisers and each, a Sub-Adviser) as sub-advisers (each, a New Sub-Advisory Agreement and collectively, the New Sub-Advisory Agreements) to take effect immediately after the Transaction or shareholder approval, whichever is later. During each of these meetings, the Board sought additional and clarifying information as it deemed necessary or appropriate. In addition, the Board engaged its independent fee consultant to help evaluate certain of the proposals that the Board was being asked to consider. Throughout the process, the Board had the assistance of its independent legal counsel, who advised them on, among other things, its duties and obligations.
34 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
In connection with the Boards review, Janus Capital provided, and the Board obtained, substantial information regarding the following matters: the management, financial position and business of Henderson; the history of Hendersons business and operations; the investment performance of the investment companies advised by Henderson; the proposed structure, operations and investment processes of the combined investment management organization after the Transaction and the strategy for operating and growing the business following the Transaction; the future plans of Janus and Henderson with respect to the Funds and any proposed changes to the operations or structure of the Funds; and the future plans of Janus and Henderson with respect to the provision of services to the Funds, and the entities providing such services, including those affiliated with Janus. The Board also received information regarding the terms of the Transaction, anticipated management of the combined organization, the resources that each of Janus and Henderson bring to the combined organization and the process being followed by Janus and Henderson to integrate their organizations. The Board also received information regarding the impact of the Transaction on each of INTECH, Perkins and Janus Singapore.
In connection with the Boards approval of New Advisory Agreements and New Sub-Advisory Agreements at its December 8, 2016 meeting, the Board also continued its on-going annual process to determine whether to continue the existing investment advisory agreements between Janus Capital and the Trust on behalf of each Fund (each, a Current Advisory Agreement and collectively, the Current Advisory Agreements) and the existing sub-advisory agreements between Janus Capital and each of the Funds that utilize INTECH, Perkins, or Janus Singapore as sub-advisers (each, a Current Sub-Advisory Agreement and collectively, the Current Sub-Advisory Agreements). In this regard, the Board received and reviewed information provided by Janus and the respective Sub-Advisers in response to requests of the Board and its independent legal counsel. The Board also received and reviewed information and analysis provided by, and in response to requests of, its independent fee consultant. The Board noted that as part of this annual process, the Board had considered and was in the process of considering, numerous factors, including the nature and quality of services provided by Janus Capital and each Sub-Adviser, as applicable; investment performance, on an absolute basis and relative to appropriate peer groups and one or a combination of market indices; investment management fees, expense ratios and asset sizes of the Funds and peer groups; investment management fees charged to comparable investment companies, separate accounts and non-fund clients; Janus Capitals profitability from managing the Funds; fall-out benefits to Janus Capital from its relationship to the Funds, including revenues derived from services provided to the Funds by affiliates of Janus Capital; and the potential benefits to Janus Capital, the Funds of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms.
In determining whether to approve the New Advisory Agreement for each Fund and the New Sub-Advisory Agreement for Funds managed by INTECH, Perkins or Janus Singapore in connection with the Transaction, and whether to recommend approval to Fund shareholders, the Board received information and made inquiries into all matters as it deemed appropriate. The Board reviewed and analyzed various factors it deemed relevant, including the following factors, among others, none of which by itself was considered dispositive:
· The terms of the New Advisory Agreements are substantially similar to the corresponding Current Advisory Agreements, and the contractual fee rate will not change. In this regard, see the discussion of the Boards considerations with respect to its most recent approval of the Current Advisory Agreements prior to December 8, 2016, as disclosed in each Funds most recent prior annual or semi-annual shareholder report, as applicable.
· The terms of the New Sub-Advisory Agreements are substantially similar to the corresponding Current Sub-Advisory Agreements, and the contractual fee rate will not change. In this regard, see the discussion of the Boards considerations with respect to its most recent approval of the Current Sub-Advisory Agreements prior to December 8, 2016, as disclosed in each Funds most recent prior annual or semi-annual shareholder report, as applicable.
· Janus Capitals plans for the operation of the Funds, including its plans for the continued provision of all services currently provided to the Funds by Janus Capital and its affiliates, including, among others, investment advisory services, portfolio trading services, and Fund administrative and accounting services, and the personnel and resources proposed to support the provision of such services.
· The estimated profitability to Janus Capital from managing the Funds after the Transaction, including potential economies of scale and fall-out benefits to Janus Capital from its relationship to the Funds, including revenues derived from services provided to the Funds by affiliates of Janus Capital, and the potential benefits to Janus
Janus Investment Fund | 35 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
Capital, and the Funds of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms.
In connection with its deliberations, the Board received assurances from Janus, on behalf of itself and its affiliates (collectively, Janus) including the following:
· Janus has provided to the Board such information as it believes is reasonably necessary to evaluate the New Advisory Agreements and New Sub-Advisory Agreements.
· Janus is committed to the continuance, without interruption, of services to the Funds of at least the type and quality currently provided by Janus Capital and its affiliates, or superior thereto.
· The Transaction is not expected to affect negatively the nature, extent or quality of the investment advisory services provided by Janus Capital to the Funds following the Transaction, and the investment advisory services are expected to be at least comparable to the services being provided under the Current Advisory Agreements and Current Sub-Advisory Agreements. In this regard, the Board noted specific representations that Janus does not intend for the nature, extent or quality of investment advisory and other services to be provided to the Funds following the Transaction to change, and the extent of such services were expected to increase based on the combined resources of the combined investment management organization after the Transaction, and should the nature, extent or quality of such services decline, Janus would commit the resources needed to return such services to pre-Transaction levels.
· The Funds current operations were expected to remain largely unchanged, except for certain fund reorganizations which will be separately considered by the Board, and such other changes as were or will be presented to the Board.
· Janus does not intend to make changes to the portfolio managers providing services to the Funds, other than proposed changes in the management of certain Funds as discussed with the Board, including those related to proposals to merge certain Funds with Funds managed by Henderson Global Investors (North America) Inc., an indirect, wholly-owned subsidiary of Henderson, and subject to such changes as may arise at any time as a result of the ongoing process of portfolio manager evaluation.
· After the Transaction, the extent of distribution and marketing services provided to the Janus Funds were expected to increase based on the combined resources of Janus and Henderson. In this regard, Janus Capital advised the Board that after the Transaction, the extent of distribution and marketing services provided to the Janus Funds are expected to increase based on the combined resources of Janus and Henderson. This is due primarily to the anticipated increase of sales related resources and expanded global presence of the combined Janus Henderson organization, which is expected to enhance visibility and brand recognition of the Janus Henderson Funds.
· The intent of Janus Capital to take the necessary and appropriate steps to retain and attract its key investment advisory personnel.
· The intent of Janus to take the necessary and appropriate steps to retain and attract its key compliance, financial, fund accounting and administrative personnel supporting the management and oversight of the Funds.
· Janus is not aware of any express or implied term, condition, arrangement or understanding that would impose in its best judgement an unfair burden on any Fund as a result of the Transaction, as defined in Section 15(f) of the 1940 Act, and that Janus will take no action that would have the effect of imposing such an unfair burden on any Fund in connection with the Transaction.
Janus assured the Board that it intended to comply with Section 15(f) of the Investment Company Act of 1940, as amended (the 1940 Act). Section 15(f) provides a non-exclusive safe harbor for an investment adviser to an investment company or any of its affiliated persons to receive any amount or benefit in connection with a change in control of the investment adviser so long as two conditions are met. First, for a period of three years after the transaction, at least 75% of the board members of the investment company must not be interested persons of such investment adviser (as defined under the 1940 Act). The composition of the Board is in compliance with this provision of Section 15(f). In addition, after careful review and consideration, the Board determined that it would be in the best interests of the Funds to add to the Board an individual who currently acts as a non-interested board member of the
36 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
Henderson Trust. The Board believes that this change in the Board composition will provide perspective and insight relating to experience working with the Henderson organization. The Boards Nominating and Governance Committee considered a number of candidates and recommended that the Board nominate one proposed new trustee from those candidates who currently act as non-interested board members of the Henderson Trust. The Board approved that trustee nominee to serve on the Board, subject to election by the shareholders of the Funds and contingent on the closing of the Transaction. If the new trustee is elected and serves on the Board, the Board composition would continue to satisfy the provisions of Section 15(f).
To meet the second condition of Section 15(f), an unfair burden must not be imposed upon the investment company as a result of such transaction or any express or implied terms, conditions or understandings applicable thereto. The term unfair burden is defined in Section 15(f) to include any arrangement during the two-year period after the transaction, whereby the investment adviser, or any interested person of such adviser, receives or is entitled to receive any compensation, directly or indirectly, from the investment company or its shareholders (other than fees for bona fide investment advisory or other services) or from any person in connection with the purchase or sale of securities or other property to, from or on behalf of the investment company (other than bona fide ordinary compensation as principal underwriter for such investment company).
Janus represented that it does not believe that an unfair burden will be placed on the Funds as a result of the Transaction. In furtherance thereof, Janus has undertaken to pay the costs of preparing and distributing proxy materials to, and of holding the meetings of, the Funds shareholders (the Meetings), as well as other fees and expenses in connection with the Transaction, including the reasonable fees and expenses of legal counsel and consultants to the Funds and the Trustees. In addition, Janus has agreed, for a period of two years following the closing of the Transaction, (i) not to request any increases to advisory fees for the Funds, other than those proposed to and approved by the Board prior to the close of the Transaction, and (ii) to continue to use the current process by which expense caps are set annually for the Funds.
As a result of its review and consideration of the New Investment Advisory Agreements and New Sub-Advisory Agreements in connection with the Transaction, at a meeting on December 8, 2016, the Board voted unanimously to approve a New Investment Advisory Agreement for each Fund and a New Sub-Advisory Agreement for each Fund managed by INTECH, Perkins or Janus Singapore, and to recommend such agreements to the Funds shareholders for their approval.
Approval of Interim Advisory and Sub-Advisory Agreements with Janus and Janus Affiliates during the Period
In the event shareholders of a Fund do not approve such Funds New Advisory Agreement and/or New Sub-Advisory Agreement at the Meetings prior to the closing of the Transaction, Janus Capital proposed that an interim investment advisory agreement between Janus Capital and such Fund (each, an Interim Advisory Agreement and collectively, the Interim Advisory Agreements) and an interim sub-advisory agreement between Janus Capital and the applicable Sub-Adviser (each, an Interim Sub-Advisory Agreement and collectively, the Interim Sub-Advisory Agreements) take effect upon the closing of the Transaction. At the December 8, 2016 meeting, the Board, all of whom are Independent Trustees, unanimously approved an Interim Advisory Agreement for each Fund and an Interim Sub-Advisory Agreement for each applicable Fund in order to assure continuity of investment advisory services to the Funds and sub-advisory services to the sub-advised Funds after the Transaction. The terms of each Interim Advisory Agreement are substantially identical to those of the applicable Current Advisory Agreement and New Advisory Agreement, except for the term and escrow provisions described below. Similarly, the terms of each Interim Sub-Advisory Agreement are substantially identical to those of the Current Sub-Advisory Agreements and New Sub-Advisory Agreements, except for the term and escrow provisions described below. The Interim Advisory Agreement and Interim Sub-Advisory Agreement will continue in effect for a term ending on the earlier of 150 days from the closing of the Transaction (the 150-day period) or when shareholders of the Fund approve the New Advisory Agreement and/or New Sub-Advisory Agreement. Pursuant to Rule 15a-4 under the 1940 Act, compensation earned by Janus Capital under an Interim Advisory Agreement and compensation earned by a Sub-Adviser under an Interim Sub-Advisory Agreement will be held in an interest-bearing escrow account. If shareholders of a Fund approve the New Advisory Agreement prior to the end of the 150-day period, the amount held in the escrow account under the Interim Advisory Agreement will be paid to Janus Capital. If shareholders of a Fund approve the New Advisory Agreement and New Sub-Advisory Agreement prior to the end of the 150-day period, the amount held in the escrow account under the Interim Sub-Advisory Agreement will be paid to the Sub-Adviser. If shareholders of a Fund do not approve the New Advisory Agreement prior to the end of the 150-day period, the Board will take such action as it
Janus Investment Fund | 37 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
deems to be in the best interests of the Fund, and Janus Capital will be paid the lesser of its costs incurred in performing its services under the Interim Advisory Agreement or the total amount in the escrow account, plus interest earned. If shareholders of a Fund do not approve the New Advisory Agreement and/or New Sub-Advisory Agreement prior to the end of the 150-day period, the Board will take such action as it deems to be in the best interests of the Fund, and the Sub-Adviser will be paid the lesser of its costs incurred in performing its services under the Interim Sub-Advisory Agreement or the total amount in the escrow account, plus interest earned.
Approval of Sub-Advisory Agreements with Henderson Investment Management Limited during the Period
Janus Capital met with the Trustees on November 7-8, 2016, and December 7-8, 2016, to discuss the approval of a new sub-advisory agreement between Janus Capital and Henderson Investment Management Limited (HIML) (each, a HIML Sub-Advisory Agreement and collectively, the HIML Sub-Advisory Agreements) on behalf of each of Janus Asia Equity Fund, Janus Emerging Markets Fund, and Janus Global Real Estate Fund (each, an HIML Fund and together, the HIML Funds) to take effect immediately after the closing of the Transaction or shareholder approval, whichever is later. At the meetings, the Trustees also discussed the HIML Sub-Advisory Agreements with their independent counsel in executive session. During the course of these meetings, the Trustees requested and considered such information as they deemed relevant to their deliberations. In addition, at prior meetings and during the course of these meetings the Board also undertook a comprehensive process to evaluate the impact of the Transaction on the nature, quality and extent of services expected to be provided by Janus Capital and HIML to each HIML Fund, including after the completion of the Transaction. For a fuller discussion of the Boards consideration of the approval of a new investment advisory agreement for the HIML Funds in connection with the Transaction, see Approval of Advisory and Sub-Advisory Agreements with Janus and its Affiliates During the Period above.
At a meeting of the Board of Trustees held on December 8, 2016, the Trustees considered the HIML Sub-Advisory Agreements. In determining whether to approve the HIML Sub-Advisory Agreements, and whether to recommend approval to the shareholders of each HIML Fund, the Board received information and made inquiries into all matters as it deemed appropriate. The Board reviewed and analyzed various factors it deemed relevant, including the following factors, among others, none of which by itself was considered dispositive:
· the terms of each HIML Sub-Advisory Agreement;
· the nature, quality and extent of services expected to be provided under the HIML Sub-Advisory Agreements, including the reputation, qualifications and background of HIML and its operational and compliance infrastructures;
· the investment approach, the experience and skills of senior management and investment personnel of HIML, including the portfolio managers who would be responsible for managing all or part of the portfolio of each HIML Fund, noting the resources made available to such personnel;
· the ability of HIML to attract and retain high-quality personnel and the organizational depth of HIML;
· the sub-advisory fee rate under each HIML Sub-Advisory Agreement, as well as the overall management fee structure of each HIML Fund, noting that the sub-advisory fee rate is consistent with the approach utilized in the Janus Funds complex for other sub-advisory relationships, taking into account the allocation of managed assets between Janus Capital and HIML for the Global Real Estate Fund;
· under each HIML Sub-Advisory Agreement, Janus Capital would be responsible for paying HIML out of its fees;
· the fall out benefits to HIML and its affiliates from its relationship with each HIML Fund, including the potential benefits to HIML and its affiliates and each HIML Fund of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms;
· the potential for economies of scale with respect to the overall fee structure of each HIML Fund and whether either Fund will benefit from any economies of scale; and
· the costs of seeking approval of the HIML Sub-Advisory Agreements will not be borne by the HIML Funds.
As a result of its review and consideration of each HIML Sub-Advisory Agreement and related matters, on December 8, 2016, the Board voted unanimously to approve each HIML Sub-Advisory Agreement and to recommend such agreement to each HIML Funds shareholders for their approval.
38 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
Renewal of Investment Advisory and Sub-Advisory Agreements for INTECH U.S. Core Fund
As noted above, at its December 8, 2016 meeting, the Board continued its on-going annual process to determine whether to continue the Current Advisory Agreements and the Current Sub-Advisory Agreements. In this regard, the Board received and reviewed information provided by Janus and the respective Sub-Advisers in response to requests of the Board and its independent legal counsel. The Board also received and reviewed information and analysis provided by, and in response to requests of, its independent fee consultant. The Board noted that the Current Advisory Agreement between the Trust, on behalf of INTECH U.S. Core Fund, and Janus Capital and the Current Sub-Advisory Agreement between Janus Capital and INTECH, on behalf of the Fund, would expire on January 1, 2017, if not renewed. The Board noted that the date of termination for the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds was February 1, 2017, if not renewed. Accordingly, the Board voted unanimously to renew the Current Advisory Agreement and the Current Sub-Advisory Agreement for INTECH U.S. Core Fund through January 31, 2017 in order to (i) align the termination date of such Agreements with the termination date of the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds and (ii) allow for a more complete consideration of such Agreements, as well as the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds.
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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, 2016. 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, swaptions, 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.
40 | DECEMBER 31, 2016 |
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. Also included are ratios of expenses and net investment income to average net assets.
Janus Investment Fund | 41 |
INTECH Emerging Markets Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
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.
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INTECH Emerging Markets Managed Volatility Fund
Notes
NotesPage1
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INTECH Emerging Markets Managed Volatility Fund
Notes
NotesPage2
44 | DECEMBER 31, 2016 |
INTECH Emerging Markets Managed Volatility Fund
Notes
NotesPage3
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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-0217-7545 | 125-24-93012 02-17 |
SEMIANNUAL REPORT December 31, 2016 | |||
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)
FUND SNAPSHOT INTECHs active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC | ||||
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2016, INTECH Global Income Managed Volatility Funds Class I Shares returned -3.92%. This compares to the 6.81% return posted by the MSCI World Index, the Funds primary benchmark, and a 2.27% 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
Led by riskier segments of the market, global developed equity markets as measured by the MSCI World Index posted a return of 6.81% for the six-month period ended December 31, 2016. The MSCI World High Dividend Yield Index recorded a positive return of 2.27% over the period. INTECH Global Income Managed Volatility Fund underperformed the MSCI World Index and the MSCI World High Dividend Yield Index over the period and generated a return of -3.92%.
The Funds defensive positioning acted as a significant headwind to relative performance as investors risk appetite increased in global equity markets. On average, the Fund was overweight lower volatility stocks, or stocks with a lower total risk (standard deviation of returns), as well as lower beta stocks, or stocks with lower sensitivity to market movements. During the period higher volatility and higher beta stocks outperformed lower volatility and lower beta stocks as well as the overall market, on average. Consequently, the Funds overweight to lower volatility and lower beta stocks detracted from the Funds relative return for 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 Fund was adversely impacted by an average overweight allocation to the defensive utilities sector, which was the weakest performing sector during the period. Stock selection, which is a residual of the investment process, also detrated from the Funds relative performance during the period, especially within the consumer discretionary sector.
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. While the INTECH Global Income Managed Volatility Fund, which tends to overweight smaller cap stocks as they provide more relative volatility capture potential, was positively impacted by the overall increase in market diversity, the Fund was negatively impacted by
Janus Investment Fund | 1 |
INTECH Global Income Managed Volatility Fund (unaudited)
its current defensive positioning and underperformed 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.
Managing downside exposure potentially allows for returns to compound and improve risk-adjusted returns over time. Over the long term, we believe that by reducing risk when market volatility increases and behaving like a core equity fund when market volatility is low, the Fund will achieve its investment objective of producing an excess return over the benchmark with lower absolute risk. 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 Global Income Managed Volatility Fund.
2 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund (unaudited)
Fund At A Glance
December 31, 2016
5 Largest Equity Holdings - (% of Net Assets) | |
Southern Co | |
Electric Utilities | 4.8% |
Reynolds American Inc | |
Tobacco | 4.7% |
PG&E Corp | |
Electric Utilities | 4.6% |
Kimberly-Clark Corp | |
Household Products | 4.5% |
Consolidated Edison Inc | |
Multi-Utilities | 4.5% |
23.1% |
Asset Allocation - (% of Net Assets) | |||||
Common Stocks | 99.5% | ||||
Investment Companies | 0.6% | ||||
Other | (0.1)% | ||||
100.0% |
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2016 | As of June 30, 2016 |
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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, 2016 |
|
| per the October 28, 2016 prospectuses | |||||||
|
| Fiscal
| One
| Five
| Since |
|
| Total Annual Fund
| Net Annual Fund
| |
Class A Shares at NAV |
| -4.05% | 5.44% | 8.66% | 9.24% |
|
| 1.48% | 0.82% | |
Class A Shares at MOP |
| -9.55% | -0.61% | 7.37% | 7.97% |
|
|
|
| |
Class C Shares at NAV | -4.35% | 4.67% | 7.83% | 8.42% |
|
| 2.17% | 1.56% | ||
Class C Shares at CDSC |
| -5.29% | 3.67% | 7.83% | 8.42% |
|
|
|
| |
Class D Shares(1) |
| -3.89% | 5.64% | 8.78% | 9.36% |
|
| 1.33% | 0.64% | |
Class I Shares |
| -3.92% | 5.68% | 8.96% | 9.54% |
|
| 1.18% | 0.58% | |
Class S Shares |
| -4.04% | 5.36% | 8.65% | 9.23% |
|
| 1.79% | 1.01% | |
Class T Shares |
| -3.93% | 5.63% | 8.75% | 9.33% |
|
| 1.31% | 0.75% | |
MSCI World Index |
| 6.81% | 7.51% | 10.41% | 11.08% |
|
|
|
| |
MSCI World High Dividend Yield Index |
| 2.27% | 9.29% | 8.21% | 8.94% |
|
|
|
| |
Morningstar Quartile - Class I Shares |
| - | 2nd | 3rd | 3rd |
|
|
|
| |
Morningstar Ranking - based on total returns for World Stock Funds |
| - | 498/1,041 | 451/771 | 437/760 |
|
|
|
|
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.
4 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund (unaudited)
Performance
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 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.
See Financial Highlights for actual expense ratios during the reporting period.
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.
© 2016 Morningstar, Inc. All Rights Reserved.
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.
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 | $959.50 | $4.25 |
| $1,000.00 | $1,020.87 | $4.38 | 0.86% | ||
Class C Shares | $1,000.00 | $956.50 | $8.04 |
| $1,000.00 | $1,016.99 | $8.29 | 1.63% | ||
Class D Shares | $1,000.00 | $961.10 | $3.21 |
| $1,000.00 | $1,021.93 | $3.31 | 0.65% | ||
Class I Shares | $1,000.00 | $960.80 | $2.92 |
| $1,000.00 | $1,022.23 | $3.01 | 0.59% | ||
Class S Shares | $1,000.00 | $959.60 | $4.59 |
| $1,000.00 | $1,020.52 | $4.74 | 0.93% | ||
Class T Shares | $1,000.00 | $960.70 | $3.76 |
| $1,000.00 | $1,021.37 | $3.87 | 0.76% | ||
| Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Funds prospectuses for more information regarding waivers and/or reimbursements. |
6 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks 99.5% | |||||||
Aerospace & Defense 2.8% | |||||||
Lockheed Martin Corp | 23,600 | $5,898,584 | |||||
Airlines 0.4% | |||||||
Japan Airlines Co Ltd | 19,000 | 554,512 | |||||
Singapore Airlines Ltd | 54,900 | 365,749 | |||||
920,261 | |||||||
Auto Components 0.5% | |||||||
Bridgestone Corp | 12,800 | 460,502 | |||||
Sumitomo Rubber Industries Ltd | 31,100 | 492,028 | |||||
952,530 | |||||||
Automobiles 0% | |||||||
Nissan Motor Co Ltd | 3,400 | 34,115 | |||||
Banks 2.9% | |||||||
Bank of Montreal | 1,400 | 100,706 | |||||
BOC Hong Kong Holdings Ltd | 254,000 | 909,415 | |||||
Canadian Imperial Bank of Commerce | 4,200 | 342,758 | |||||
DBS Group Holdings Ltd# | 62,700 | 748,238 | |||||
Hang Seng Bank Ltd | 170,500 | 3,160,154 | |||||
United Overseas Bank Ltd | 53,300 | 748,183 | |||||
6,009,454 | |||||||
Beverages 0.1% | |||||||
Coca-Cola Co | 4,100 | 169,986 | |||||
Biotechnology 0.2% | |||||||
AbbVie Inc | 5,600 | 350,672 | |||||
Chemicals 0% | |||||||
Syngenta AG | 107 | 42,297 | |||||
Construction Materials 1.1% | |||||||
Fletcher Building Ltd | 317,559 | 2,331,930 | |||||
Containers & Packaging 0.9% | |||||||
Amcor Ltd/Australia | 158,426 | 1,706,205 | |||||
International Paper Co | 100 | 5,306 | |||||
Packaging Corp of America | 2,000 | 169,640 | |||||
1,881,151 | |||||||
Diversified Consumer Services 0.4% | |||||||
H&R Block Inc# | 31,600 | 726,484 | |||||
Diversified Telecommunication Services 3.5% | |||||||
AT&T Inc | 35,500 | 1,509,815 | |||||
BCE Inc | 38,577 | 1,667,503 | |||||
HKT Trust & HKT Ltd | 2,019,000 | 2,471,090 | |||||
Singapore Telecommunications Ltd | 273,900 | 687,550 | |||||
Spark New Zealand Ltd | 139,630 | 330,045 | |||||
Swisscom AG | 628 | 280,873 | |||||
Telstra Corp Ltd | 87,774 | 322,523 | |||||
7,269,399 | |||||||
Electric Utilities 23.7% | |||||||
Alliant Energy Corp | 2,200 | 83,358 | |||||
American Electric Power Co Inc | 800 | 50,368 | |||||
Cheung Kong Infrastructure Holdings Ltd | 558,000 | 4,438,275 | |||||
CLP Holdings Ltd | 953,500 | 8,712,840 | |||||
Contact Energy Ltd | 449,123 | 1,450,053 | |||||
Duke Energy Corp | 17,966 | 1,394,521 | |||||
Endesa SA | 4,678 | 99,039 | |||||
Entergy Corp | 12,400 | 911,028 | |||||
Eversource Energy | 2,500 | 138,075 | |||||
NextEra Energy Inc | 4,900 | 585,354 | |||||
PG&E Corp | 157,800 | 9,589,506 | |||||
Pinnacle West Capital Corp | 3,200 | 249,696 | |||||
Power Assets Holdings Ltd | 1,025,500 | 9,035,073 | |||||
PPL Corp | 50,600 | 1,722,930 | |||||
Southern Co | 202,300 | 9,951,137 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Electric Utilities (continued) | |||||||
Xcel Energy Inc | 20,500 | $834,350 | |||||
49,245,603 | |||||||
Food & Staples Retailing 2.8% | |||||||
ICA Gruppen AB | 4,333 | 132,033 | |||||
Lawson Inc | 70,500 | 4,949,788 | |||||
Wesfarmers Ltd | 23,001 | 698,163 | |||||
5,779,984 | |||||||
Food Products 1.9% | |||||||
General Mills Inc | 55,300 | 3,415,881 | |||||
Tate & Lyle PLC | 57,581 | 501,398 | |||||
3,917,279 | |||||||
Health Care Providers & Services 2.9% | |||||||
Sonic Healthcare Ltd | 384,257 | 5,928,944 | |||||
Hotels, Restaurants & Leisure 3.6% | |||||||
Darden Restaurants Inc | 4,600 | 334,512 | |||||
McDonald's Corp | 57,600 | 7,011,072 | |||||
Sands China Ltd | 30,000 | 129,030 | |||||
7,474,614 | |||||||
Household Durables 0.3% | |||||||
Garmin Ltd | 12,600 | 610,974 | |||||
Household Products 5.1% | |||||||
Kimberly-Clark Corp | 82,500 | 9,414,900 | |||||
Procter & Gamble Co | 14,700 | 1,235,976 | |||||
10,650,876 | |||||||
Industrial Conglomerates 1.3% | |||||||
CK Hutchison Holdings Ltd | 22,000 | 248,373 | |||||
NWS Holdings Ltd | 1,514,000 | 2,461,753 | |||||
2,710,126 | |||||||
Information Technology Services 0% | |||||||
Paychex Inc | 600 | 36,528 | |||||
Insurance 1.2% | |||||||
Admiral Group PLC | 10,295 | 230,817 | |||||
Arthur J Gallagher & Co | 9,100 | 472,836 | |||||
Cincinnati Financial Corp | 13,200 | 999,900 | |||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 708 | 133,886 | |||||
Sony Financial Holdings Inc | 5,400 | 83,710 | |||||
Swiss Re AG | 693 | 65,675 | |||||
Tryg A/S | 31,483 | 569,362 | |||||
2,556,186 | |||||||
Internet Software & Services 0% | |||||||
Mixi Inc | 2,400 | 87,433 | |||||
Leisure Products 0.7% | |||||||
Mattel Inc | 52,300 | 1,440,865 | |||||
Marine 0.8% | |||||||
Kuehne + Nagel International AG | 12,414 | 1,639,354 | |||||
Media 4.6% | |||||||
Eutelsat Communications SA | 5,552 | 107,461 | |||||
SES SA | 147,893 | 3,256,309 | |||||
Shaw Communications Inc | 237,700 | 4,769,935 | |||||
Singapore Press Holdings Ltd | 501,900 | 1,220,876 | |||||
Sky PLC | 9,096 | 110,645 | |||||
9,465,226 | |||||||
Multiline Retail 0.9% | |||||||
Harvey Norman Holdings Ltd | 266,763 | 988,363 | |||||
Kohl's Corp | 13,800 | 681,444 | |||||
Macy's Inc | 5,900 | 211,279 | |||||
1,881,086 | |||||||
Multi-Utilities 8.4% | |||||||
Ameren Corp | 4,600 | 241,316 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Multi-Utilities (continued) | |||||||
CMS Energy Corp | 9,700 | $403,714 | |||||
Consolidated Edison Inc | 127,600 | 9,401,568 | |||||
DTE Energy Co | 9,000 | 886,590 | |||||
Public Service Enterprise Group Inc | 11,900 | 522,172 | |||||
SCANA Corp | 15,900 | 1,165,152 | |||||
Sempra Energy | 24,100 | 2,425,424 | |||||
WEC Energy Group Inc | 41,351 | 2,425,236 | |||||
17,471,172 | |||||||
Oil, Gas & Consumable Fuels 1.9% | |||||||
Exxon Mobil Corp | 23,900 | 2,157,214 | |||||
Peyto Exploration & Development Corp | 47,800 | 1,182,449 | |||||
Snam SpA | 68,365 | 281,168 | |||||
Spectra Energy Corp | 7,700 | 316,393 | |||||
TransCanada Corp | 1,800 | 81,171 | |||||
4,018,395 | |||||||
Pharmaceuticals 2.7% | |||||||
Merck & Co Inc | 53,700 | 3,161,319 | |||||
Novartis AG | 11,964 | 870,502 | |||||
Orion Oyj | 5,194 | 231,139 | |||||
Pfizer Inc | 24,600 | 799,008 | |||||
Roche Holding AG | 299 | 68,148 | |||||
Takeda Pharmaceutical Co Ltd | 9,900 | 408,925 | |||||
5,539,041 | |||||||
Real Estate Management & Development 10.0% | |||||||
Daito Trust Construction Co Ltd | 43,000 | 6,459,044 | |||||
Hang Lung Properties Ltd | 495,000 | 1,036,501 | |||||
Hysan Development Co Ltd | 414,000 | 1,706,847 | |||||
New World Development Co Ltd | 2,207,000 | 2,313,476 | |||||
Sino Land Co Ltd | 712,000 | 1,053,954 | |||||
Sun Hung Kai Properties Ltd | 154,000 | 1,928,199 | |||||
Swire Pacific Ltd | 92,000 | 878,254 | |||||
Swire Properties Ltd | 553,400 | 1,516,472 | |||||
Swiss Prime Site AG* | 29,780 | 2,437,828 | |||||
Wharf Holdings Ltd | 229,000 | 1,504,967 | |||||
20,835,542 | |||||||
Road & Rail 1.4% | |||||||
Aurizon Holdings Ltd | 121,305 | 441,331 | |||||
ComfortDelGro Corp Ltd | 1,509,100 | 2,564,135 | |||||
3,005,466 | |||||||
Semiconductor & Semiconductor Equipment 0.7% | |||||||
Intel Corp | 10,500 | 380,835 | |||||
Maxim Integrated Products Inc | 21,100 | 813,827 | |||||
QUALCOMM Inc | 4,600 | 299,920 | |||||
1,494,582 | |||||||
Specialty Retail 0.7% | |||||||
Gap Inc# | 38,600 | 866,184 | |||||
Kingfisher PLC | 53,032 | 228,338 | |||||
L Brands Inc | 5,100 | 335,784 | |||||
1,430,306 | |||||||
Technology Hardware, Storage & Peripherals 0.7% | |||||||
Canon Inc | 48,900 | 1,369,552 | |||||
Textiles, Apparel & Luxury Goods 1.3% | |||||||
Yue Yuen Industrial Holdings Ltd | 752,500 | 2,724,010 | |||||
Tobacco 4.8% | |||||||
Altria Group Inc | 800 | 54,096 | |||||
Reynolds American Inc | 172,362 | 9,659,167 | |||||
Swedish Match AB | 9,132 | 290,256 | |||||
10,003,519 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Wireless Telecommunication Services 4.3% | |||||||
NTT DOCOMO Inc | 166,900 | $3,795,919 | |||||
Rogers Communications Inc | 97,100 | 3,745,854 | |||||
StarHub Ltd | 701,500 | 1,357,098 | |||||
8,898,871 | |||||||
Total Common Stocks (cost $210,670,946) | 206,802,397 | ||||||
Investment Companies 0.6% | |||||||
Investments Purchased with Cash Collateral from Securities Lending 0.6% | |||||||
Janus Cash Collateral Fund LLC, 0.4311%ºº,£ (cost $1,198,230) | 1,198,230 | 1,198,230 | |||||
Total Investments (total cost $211,869,176) 100.1% | 208,000,627 | ||||||
Liabilities, net of Cash, Receivables and Other Assets (0.1)% | (177,969) | ||||||
Net Assets 100% | $207,822,658 |
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
% of | |||||
Investment | |||||
Country | Value | Securities | |||
United States | $97,720,126 | 47.0 | % | ||
Hong Kong | 46,228,683 | 22.2 | |||
Japan | 18,695,528 | 9.0 | |||
Canada | 11,890,376 | 5.7 | |||
Australia | 10,085,529 | 4.9 | |||
Singapore | 7,691,829 | 3.7 | |||
Switzerland | 5,404,677 | 2.6 | |||
New Zealand | 4,112,028 | 2.0 | |||
France | 3,363,770 | 1.6 | |||
United Kingdom | 1,071,198 | 0.5 | |||
Denmark | 569,362 | 0.3 | |||
Sweden | 422,289 | 0.2 | |||
Italy | 281,168 | 0.1 | |||
Finland | 231,139 | 0.1 | |||
Germany | 133,886 | 0.1 | |||
Spain | 99,039 | 0.0 |
Total | $208,000,627 | 100.0 | % |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2016 |
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. |
MSCI World IndexSM | A market capitalization weighted index composed of companies representative of the market structure of Developed Market countries in North America, Europe and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. |
LLC | Limited Liability Company |
PLC | Public Limited Company |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of December 31, 2016. |
# | Loaned security; a portion of the security is on loan at December 31, 2016. |
£ | 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, 2016. Unless otherwise indicated, all information in the table is for the period ended December 31, 2016. |
Share | Share | ||||||||||||||
Balance | Balance | Realized | Dividend | Value | |||||||||||
at 6/30/16 | Purchases | Sales | at 12/31/16 | Gain/(Loss) | Income | at 12/31/16 | |||||||||
Janus Cash Collateral Fund LLC | 865,710 | 28,234,935 | (27,902,415) | 1,198,230 | $ | $26,779(1) | $1,198,230 | ||||||||
Janus Cash Liquidity Fund LLC | 4,326,909 | 66,377,166 | (70,704,075) | | | 9,022 | | ||||||||
Total | $ | $35,801 | $1,198,230 | ||||||||||||
(1) | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Investment Fund | 11 |
INTECH Global Income Managed Volatility Fund
Notes to Schedule of Investments and Other Information (unaudited)
The following is a summary of the inputs that were used to value the Funds investments in securities and other financial instruments as of December 31, 2016. See Notes to Financial Statements for more information. | ||||||||||||
Valuation Inputs Summary | ||||||||||||
Level 2 - | Level 3 - | |||||||||||
Level 1 - | Other Significant | Significant | ||||||||||
Quotes Prices | Observable Inputs | Unobservable Inputs | ||||||||||
Assets | ||||||||||||
Investments in Securities: | ||||||||||||
Common Stocks | ||||||||||||
Airlines | $ | - | $ | 920,261 | $ | - | ||||||
Auto Components | - | 952,530 | - | |||||||||
Automobiles | - | 34,115 | - | |||||||||
Banks | - | 6,009,454 | - | |||||||||
Chemicals | - | 42,297 | - | |||||||||
Construction Materials | - | 2,331,930 | - | |||||||||
Containers & Packaging | 174,946 | 1,706,205 | - | |||||||||
Diversified Telecommunication Services | 1,509,815 | 5,759,584 | - | |||||||||
Electric Utilities | 25,510,323 | 23,735,280 | - | |||||||||
Food & Staples Retailing | - | 5,779,984 | - | |||||||||
Food Products | 3,415,881 | 501,398 | - | |||||||||
Health Care Providers & Services | - | 5,928,944 | - | |||||||||
Hotels, Restaurants & Leisure | 7,345,584 | 129,030 | - | |||||||||
Industrial Conglomerates | - | 2,710,126 | - | |||||||||
Insurance | 1,472,736 | 1,083,450 | - | |||||||||
Internet Software & Services | - | 87,433 | - | |||||||||
Marine | - | 1,639,354 | - | |||||||||
Media | 3,256,309 | 6,208,917 | - | |||||||||
Multiline Retail | 892,723 | 988,363 | - | |||||||||
Oil, Gas & Consumable Fuels | 2,473,607 | 1,544,788 | - | |||||||||
Pharmaceuticals | 3,960,327 | 1,578,714 | - | |||||||||
Real Estate Management & Development | - | 20,835,542 | - | |||||||||
Road & Rail | - | 3,005,466 | - | |||||||||
Specialty Retail | 1,201,968 | 228,338 | - | |||||||||
Technology Hardware, Storage & Peripherals | - | 1,369,552 | - | |||||||||
Textiles, Apparel & Luxury Goods | - | 2,724,010 | - | |||||||||
Tobacco | 9,713,263 | 290,256 | - | |||||||||
Wireless Telecommunication Services | - | 8,898,871 | - | |||||||||
All Other | 38,850,723 | - | - | |||||||||
Investment Companies | - | 1,198,230 | - | |||||||||
Total Assets | $ | 99,778,205 | $ | 108,222,422 | $ | - | ||||||
12 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2016
See footnotes at the end of the Statement. |
|
|
|
|
|
|
|
Assets: | ||||||
Investments, at cost | $ | 211,869,176 | ||||
Unaffiliated investments, at value(1) | 206,802,397 | |||||
Affiliated investments, at value | 1,198,230 | |||||
Cash denominated in foreign currency(2) | 88,825 | |||||
Non-interested Trustees' deferred compensation | 3,861 | |||||
Receivables: | ||||||
Investments sold | 3,922,493 | |||||
Fund shares sold | 508,838 | |||||
Dividends | 480,738 | |||||
Foreign tax reclaims | 24,711 | |||||
Other assets | 2,967 | |||||
Total Assets |
|
| 213,033,060 |
| ||
Liabilities: | ||||||
Due to custodian | 3,022,228 | |||||
Collateral for securities loaned (Note 2) | 1,198,230 | |||||
Payables: | | |||||
Fund shares repurchased | 797,789 | |||||
Advisory fees | 46,751 | |||||
Custodian fees | 39,495 | |||||
Transfer agent fees and expenses | 32,910 | |||||
12b-1 Distribution and shareholder servicing fees | 22,901 | |||||
Professional fees | 21,308 | |||||
Non-interested Trustees' deferred compensation fees | 3,861 | |||||
Dividends | 3,783 | |||||
Fund administration fees | 1,870 | |||||
Non-interested Trustees' fees and expenses | 1,664 | |||||
Accrued expenses and other payables | 17,612 | |||||
Total Liabilities |
|
| 5,210,402 |
| ||
Net Assets |
| $ | 207,822,658 |
|
See Notes to Financial Statements. | |
Janus Investment Fund | 13 |
INTECH Global Income Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2016
|
|
|
|
|
|
|
Net Assets Consist of: | ||||||
Capital (par value and paid-in surplus) | $ | 215,087,067 | ||||
Undistributed net investment income/(loss) | (84,007) | |||||
Undistributed net realized gain/(loss) from investments and foreign currency transactions | (3,309,701) | |||||
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees deferred compensation | (3,870,701) | |||||
Total Net Assets |
| $ | 207,822,658 |
| ||
Net Assets - Class A Shares | $ | 35,609,179 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,932,548 | |||||
Net Asset Value Per Share(3) |
| $ | 12.14 |
| ||
Maximum Offering Price Per Share(4) |
| $ | 12.88 |
| ||
Net Assets - Class C Shares | $ | 16,135,784 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,337,877 | |||||
Net Asset Value Per Share(3) |
| $ | 12.06 |
| ||
Net Assets - Class D Shares | $ | 51,610,172 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 4,260,836 | |||||
Net Asset Value Per Share |
| $ | 12.11 |
| ||
Net Assets - Class I Shares | $ | 43,153,896 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 3,545,066 | |||||
Net Asset Value Per Share |
| $ | 12.17 |
| ||
Net Assets - Class S Shares | $ | 322,849 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 26,637 | |||||
Net Asset Value Per Share |
| $ | 12.12 |
| ||
Net Assets - Class T Shares | $ | 60,990,778 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,029,676 | |||||
Net Asset Value Per Share |
| $ | 12.13 |
|
(1) Includes $1,167,380 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Includes cost of $88,825. (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, 2016 |
INTECH Global Income Managed Volatility Fund
Statement of Operations (unaudited)
For the period ended December 31, 2016
|
|
|
|
|
|
Investment Income: | |||||
| Dividends | $ | 3,867,473 | ||
Affiliated securities lending income, net | 26,779 | ||||
Dividends from affiliates | 9,022 | ||||
Other income | 54 | ||||
Foreign tax withheld | (112,590) | ||||
Total Investment Income |
| 3,790,738 |
| ||
Expenses: | |||||
Advisory fees | 620,551 | ||||
12b-1Distribution and shareholder servicing fees: | |||||
Class A Shares | 47,543 | ||||
Class C Shares | 76,405 | ||||
Class S Shares | 438 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 37,443 | ||||
Class S Shares | 438 | ||||
Class T Shares | 77,320 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 17,618 | ||||
Class C Shares | 7,290 | ||||
Class I Shares | 19,354 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 2,067 | ||||
Class C Shares | 1,110 | ||||
Class D Shares | 8,117 | ||||
Class I Shares | 1,411 | ||||
Class T Shares | 560 | ||||
Registration fees | 87,355 | ||||
Custodian fees | 46,172 | ||||
Professional fees | 20,055 | ||||
Shareholder reports expense | 19,198 | ||||
Fund administration fees | 10,718 | ||||
Non-interested Trustees fees and expenses | 4,600 | ||||
Other expenses | 5,844 | ||||
Total Expenses |
| 1,111,607 |
| ||
Less: Excess Expense Reimbursement |
| (250,960) |
| ||
Net Expenses |
| 860,647 |
| ||
Net Investment Income/(Loss) |
| 2,930,091 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments and foreign currency transactions | (3,155,901) | ||||
Total Net Realized Gain/(Loss) on Investments |
| (3,155,901) |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments, foreign currency translations and non-interested Trustees deferred compensation | (9,791,841) | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| (9,791,841) |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (10,017,651) |
| ||
See Notes to Financial Statements. | |
Janus Investment Fund | 15 |
INTECH Global Income Managed Volatility Fund
Statements of Changes in Net Assets
|
|
| Period
ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 2,930,091 | $ | 1,851,339 | ||||
Net realized gain/(loss) on investments | (3,155,901) | (143,710) | ||||||
Change in unrealized net appreciation/depreciation | (9,791,841) | 6,102,470 | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| (10,017,651) |
|
| 7,810,099 | |||
Dividends and Distributions to Shareholders: | ||||||||
Dividends from Net Investment Income | ||||||||
Class A Shares | (558,136) | (240,755) | ||||||
Class C Shares | (172,174) | (76,970) | ||||||
Class D Shares | (946,115) | (574,558) | ||||||
Class I Shares | (772,435) | (266,119) | ||||||
Class S Shares | (4,899) | (5,398) | ||||||
Class T Shares | (934,743) | (346,275) | ||||||
| Total Dividends from Net Investment Income |
| (3,388,502) |
|
| (1,510,075) | ||
Distributions from Net Realized Gain from Investment Transactions | ||||||||
Class A Shares | (1,908) | (35,986) | ||||||
Class C Shares | (872) | (20,542) | ||||||
Class D Shares | (2,833) | (121,140) | ||||||
Class I Shares | (2,464) | (38,577) | ||||||
Class S Shares | (17) | (1,913) | ||||||
Class T Shares | (3,297) | (47,481) | ||||||
| Total Distributions from Net Realized Gain from Investment Transactions | (11,391) |
|
| (265,639) | |||
Net Decrease from Dividends and Distributions to Shareholders |
| (3,399,893) |
|
| (1,775,714) | |||
Capital Share Transactions: | ||||||||
Class A Shares | 10,566,822 | 23,605,557 | ||||||
Class C Shares | 5,518,491 | 9,846,313 | ||||||
Class D Shares | 49,610 | 45,554,636 | ||||||
Class I Shares | 16,600,759 | 25,750,043 | ||||||
Class S Shares | 26,452 | 130,212 | ||||||
Class T Shares | 16,847,606 | 43,105,645 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| 49,609,740 |
|
| 147,992,406 | |||
Net Increase/(Decrease) in Net Assets |
| 36,192,196 |
|
| 154,026,791 | |||
Net Assets: | ||||||||
Beginning of period | 171,630,462 | 17,603,671 | ||||||
| End of period | $ | 207,822,658 |
| $ | 171,630,462 | ||
Undistributed Net Investment Income/(Loss) | $ | (84,007) |
| $ | 374,404 |
See Notes to Financial Statements. | |
16 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Financial Highlights
Class A Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) | |||||
Net Asset Value, Beginning of Period |
| $12.84 |
|
| $11.45 |
|
| $12.95 |
|
| $11.60 |
|
| $10.40 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.16(2) | 0.42(2) | 0.33(2) | 0.57(2) | 0.35 | 0.22 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.68) | 1.40 | (1.08) | 1.86 | 1.24 | 0.35 | |||||||||||||||
Total from Investment Operations |
| (0.52) |
|
| 1.82 |
|
| (0.75) |
|
| 2.43 |
|
| 1.59 |
|
| 0.57 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.18) | (0.30) | (0.44) | (0.43) | (0.39) | (0.17) | |||||||||||||||
Distributions (from capital gains) | (3) | (0.13) | (0.31) | (0.65) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.18) |
|
| (0.43) |
|
| (0.75) |
|
| (1.08) |
|
| (0.39) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $12.14 | $12.84 | $11.45 | $12.95 | $11.60 | $10.40 | |||||||||||||||
Total Return* |
| (4.05)% |
|
| 16.28% |
|
| (5.79)% |
|
| 21.79% |
|
| 15.41% |
|
| 5.70% |
| |||
Net Assets, End of Period (in thousands) | $35,609 | $27,380 | $2,816 | $6,300 | $1,625 | $931 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $37,337 | $8,512 | $3,789 | $4,861 | $996 | $881 | |||||||||||||||
Ratios to Average Net Assets**: |
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| |||
Ratio of Gross Expenses | 1.08% | 1.48% | 1.90% | 1.96% | 2.69% | 5.56% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.86% | 0.83% | 0.84% | 0.81% | 0.76% | 1.02% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 2.56% | 3.47% | 2.74% | 4.62% | 3.18% | 4.01% | |||||||||||||||
Portfolio Turnover Rate | 27% | 41% | 125% | 51% | 116% | 24% | |||||||||||||||
1 |
Class C Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) |
| ||||
Net Asset Value, Beginning of Period |
| $12.75 |
|
| $11.39 |
|
| $12.89 |
|
| $11.56 |
|
| $10.37 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.11(2) | 0.33(2) | 0.24(2) | 0.45(2) | 0.27 | 0.19 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.66) | 1.38 | (1.07) | 1.87 | 1.22 | 0.35 | |||||||||||||||
Total from Investment Operations |
| (0.55) |
|
| 1.71 |
|
| (0.83) |
|
| 2.32 |
|
| 1.49 |
|
| 0.54 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.14) | (0.22) | (0.36) | (0.34) | (0.30) | (0.17) | |||||||||||||||
Distributions (from capital gains) | (3) | (0.13) | (0.31) | (0.65) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.14) |
|
| (0.35) |
|
| (0.67) |
|
| (0.99) |
|
| (0.30) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $12.06 | $12.75 | $11.39 | $12.89 | $11.56 | $10.37 | |||||||||||||||
Total Return* |
| (4.35)% |
|
| 15.33% |
|
| (6.51)% |
|
| 20.83% |
|
| 14.50% |
|
| 5.36% |
| |||
Net Assets, End of Period (in thousands) | $16,136 | $11,529 | $1,161 | $999 | $489 | $940 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $14,982 | $3,746 | $1,136 | $613 | $793 | $900 | |||||||||||||||
Ratios to Average Net Assets**: |
|
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|
| |||
Ratio of Gross Expenses | 1.85% | 2.17% | 2.72% | 2.70% | 3.50% | 6.25% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.63% | 1.58% | 1.61% | 1.57% | 1.51% | 1.70% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.78% | 2.74% | 2.03% | 3.63% | 2.26% | 3.37% | |||||||||||||||
Portfolio Turnover Rate | 27% | 41% | 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. (3) Less than $0.005 on a per share basis. |
See Notes to Financial Statements. | |
Janus Investment Fund | 17 |
INTECH Global Income Managed Volatility Fund
Financial Highlights
Class D Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) | |||||
Net Asset Value, Beginning of Period |
| $12.80 |
|
| $11.42 |
|
| $12.92 |
|
| $11.58 |
|
| $10.39 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.17(2) | 0.44(2) | 0.35(2) | 0.56(2) | 0.42 | 0.21 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.66) | 1.39 | (1.07) | 1.88 | 1.17 | 0.35 | |||||||||||||||
Total from Investment Operations |
| (0.49) |
|
| 1.83 |
|
| (0.72) |
|
| 2.44 |
|
| 1.59 |
|
| 0.56 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.20) | (0.32) | (0.47) | (0.45) | (0.40) | (0.17) | |||||||||||||||
Distributions (from capital gains) | (3) | (0.13) | (0.31) | (0.65) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.20) |
|
| (0.45) |
|
| (0.78) |
|
| (1.10) |
|
| (0.40) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $12.11 | $12.80 | $11.42 | $12.92 | $11.58 | $10.39 | |||||||||||||||
Total Return* |
| (3.89)% |
|
| 16.43% |
|
| (5.62)% |
|
| 21.92% |
|
| 15.49% |
|
| 5.60% |
| |||
Net Assets, End of Period (in thousands) | $51,610 | $55,105 | $7,265 | $8,689 | $4,706 | $2,124 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $61,332 | $19,737 | $7,736 | $6,297 | $3,161 | $1,727 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.89% | 1.33% | 1.89% | 1.78% | 2.57% | 5.98% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.65% | 0.65% | 0.66% | 0.66% | 0.67% | 1.32% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 2.69% | 3.60% | 2.95% | 4.51% | 3.91% | 4.09% | |||||||||||||||
Portfolio Turnover Rate | 27% | 41% | 125% | 51% | 116% | 24% | |||||||||||||||
Class I Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) |
| ||||
Net Asset Value, Beginning of Period |
| $12.87 |
|
| $11.47 |
|
| $12.97 |
|
| $11.62 |
|
| $10.42 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.18(2) | 0.45(2) | 0.37(2) | 0.56(2) | 0.46 | 0.23 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.68) | 1.41 | (1.08) | 1.90 | 1.15 | 0.36 | |||||||||||||||
Total from Investment Operations |
| (0.50) |
|
| 1.86 |
|
| (0.71) |
|
| 2.46 |
|
| 1.61 |
|
| 0.59 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.20) | (0.33) | (0.48) | (0.46) | (0.41) | (0.17) | |||||||||||||||
Distributions (from capital gains) | (3) | (0.13) | (0.31) | (0.65) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.20) |
|
| (0.46) |
|
| (0.79) |
|
| (1.11) |
|
| (0.41) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $12.17 | $12.87 | $11.47 | $12.97 | $11.62 | $10.42 | |||||||||||||||
Total Return* |
| (3.92)% |
|
| 16.61% |
|
| (5.49)% |
|
| 22.09% |
|
| 15.66% |
|
| 5.90% |
| |||
Net Assets, End of Period (in thousands) | $43,154 | $29,592 | $2,596 | $1,995 | $1,571 | $1,897 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $46,858 | $8,765 | $2,369 | $1,855 | $1,927 | $1,542 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.81% | 1.18% | 1.65% | 1.67% | 2.45% | 5.07% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.59% | 0.58% | 0.54% | 0.52% | 0.51% | 0.75% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 2.88% | 3.72% | 3.12% | 4.54% | 3.63% | 4.64% | |||||||||||||||
Portfolio Turnover Rate | 27% | 41% | 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. (3) Less than $0.005 on a per share basis. |
See Notes to Financial Statements. | |
18 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Financial Highlights
Class S Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) | |||||
Net Asset Value, Beginning of Period |
| $12.81 |
|
| $11.43 |
|
| $12.93 |
|
| $11.58 |
|
| $10.39 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.15(2) | 0.37(2) | 0.31(2) | 0.46(2) | 0.43 | 0.21 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.66) | 1.45 | (1.07) | 1.98 | 1.15 | 0.35 | |||||||||||||||
Total from Investment Operations |
| (0.51) |
|
| 1.82 |
|
| (0.76) |
|
| 2.44 |
|
| 1.58 |
|
| 0.56 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.18) | (0.31) | (0.43) | (0.44) | (0.39) | (0.17) | |||||||||||||||
Distributions (from capital gains) | (3) | (0.13) | (0.31) | (0.65) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.18) |
|
| (0.44) |
|
| (0.74) |
|
| (1.09) |
|
| (0.39) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $12.12 | $12.81 | $11.43 | $12.93 | $11.58 | $10.39 | |||||||||||||||
Total Return* |
| (4.04)% |
|
| 16.32% |
|
| (5.93)% |
|
| 21.99% |
|
| 15.40% |
|
| 5.60% |
| |||
Net Assets, End of Period (in thousands) | $323 | $316 | $163 | $174 | $286 | $880 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $344 | $204 | $166 | $199 | $726 | $872 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.23% | 1.79% | 2.10% | 2.13% | 2.96% | 5.82% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.93% | 0.77% | 1.00% | 0.77% | 0.86% | 1.26% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 2.42% | 3.06% | 2.62% | 3.72% | 2.86% | 3.77% | |||||||||||||||
Portfolio Turnover Rate | 27% | 41% | 125% | 51% | 116% | 24% | |||||||||||||||
Class T Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) |
| ||||
Net Asset Value, Beginning of Period |
| $12.82 |
|
| $11.44 |
|
| $12.94 |
|
| $11.60 |
|
| $10.40 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.16(2) | 0.45(2) | 0.35(2) | 0.55(2) | 0.46 | 0.22 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.66) | 1.38 | (1.08) | 1.88 | 1.14 | 0.35 | |||||||||||||||
Total from Investment Operations |
| (0.50) |
|
| 1.83 |
|
| (0.73) |
|
| 2.43 |
|
| 1.60 |
|
| 0.57 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.19) | (0.32) | (0.46) | (0.44) | (0.40) | (0.17) | |||||||||||||||
Distributions (from capital gains) | (3) | (0.13) | (0.31) | (0.65) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.19) |
|
| (0.45) |
|
| (0.77) |
|
| (1.09) |
|
| (0.40) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $12.13 | $12.82 | $11.44 | $12.94 | $11.60 | $10.40 | |||||||||||||||
Total Return* |
| (3.93)% |
|
| 16.33% |
|
| (5.70)% |
|
| 21.84% |
|
| 15.55% |
|
| 5.70% |
| |||
Net Assets, End of Period (in thousands) | $60,991 | $47,708 | $3,603 | $2,200 | $615 | $1,233 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $60,686 | $11,120 | $3,147 | $855 | $1,249 | $1,093 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.98% | 1.31% | 1.87% | 1.83% | 2.69% | 5.53% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.76% | 0.75% | 0.76% | 0.71% | 0.69% | 1.03% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 2.61% | 3.68% | 2.96% | 4.49% | 3.27% | 4.09% | |||||||||||||||
Portfolio Turnover Rate | 27% | 41% | 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. (3) Less than $0.005 on a per share basis. |
See Notes to Financial Statements. | |
Janus Investment Fund | 19 |
INTECH Global Income Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 seeks long-term growth of capital and income. 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 D Shares are closed to certain new investors.
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, 2016 |
INTECH Global Income Managed Volatility Fund
Notes to Financial Statements (unaudited)
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, 2016 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 recognizes transfers between the levels as of the beginning of the fiscal year. The following describes the amounts of transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period.
Financial assets of $7,781,733 were transferred out of Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the current period and no factor was applied at the end of the prior fiscal year.
Janus Investment Fund | 21 |
INTECH Global Income Managed Volatility Fund
Notes to Financial Statements (unaudited)
Financial assets of $2,909,972 were transferred out of Level 2 to Level 1 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the prior fiscal year and no factor was applied at the end of the current period.
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, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with 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 the 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 Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (REITs) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If
22 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 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. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU (known as Brexit). One or more other countries may also 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,
Janus Investment Fund | 23 |
INTECH Global Income Managed Volatility Fund
Notes to Financial Statements (unaudited)
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.
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.
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 in accordance with the Agency Securities Lending and Repurchase Agreement. For financial reporting purposes, the Fund does not offset financial instruments payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the 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.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross Amounts | |||||||||
of Recognized | Offsetting Asset | Collateral | |||||||
Counterparty | Assets | or Liability(a) | Pledged(b) | Net Amount | |||||
Deutsche Bank AG | $ | 1,167,380 | $ | | $ | (1,167,380) | $ | | |
(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. |
24 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 (if applicable). Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as Affiliated securities lending income, net on the Statement of Operations. As of December 31, 2016, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $1,167,380 for equity securities. Gross amounts of recognized liabilities for securities lending (collateral received) as of December 31, 2016 is $1,198,230, resulting in the net amount due to the counterparty of $30,850.
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% of its average daily net assets.
Janus Investment Fund | 25 |
INTECH Global Income Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 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% of the Funds average daily net assets. Janus Capital has agreed to continue the waiver until at least November 1, 2017. 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, 2016 |
INTECH Global Income Managed Volatility Fund
Notes to Financial Statements (unaudited)
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). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund also pays for some or all of 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. Some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $329,069 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2016. 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, 2016 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, 2016 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 $181,750 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2016.
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
Notes to Financial Statements (unaudited)
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, 2016 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, 2016, Janus Distributors retained upfront sales charges of $18,619.
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, 2016.
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, 2016, redeeming shareholders of Class C Shares paid CDSCs of $1,864.
As of December 31, 2016, 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 | 48 | -* | ||||
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.
28 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Notes to Financial Statements (unaudited)
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2016 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/depreciation on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships, and investments in passive foreign investment companies.
Federal Tax Cost | Unrealized | Unrealized | Net
Tax Appreciation/ |
$ 212,363,824 | $ 4,224,281 | $ (8,587,478) | $ (4,363,197) |
5. Capital Share Transactions
Period ended December 31, 2016 | Year ended June 30, 2016 | |||||
Shares | Amount | Shares | Amount | |||
Class A Shares: | ||||||
Shares sold | 1,788,429 | $22,859,217 | 2,158,209 | $26,893,110 | ||
Reinvested dividends and distributions | 44,255 | 553,842 | 22,508 | 276,634 | ||
Shares repurchased | (1,033,219) | (12,846,237) | (293,569) | (3,564,187) | ||
Net Increase/(Decrease) | 799,465 | $10,566,822 |
| 1,887,148 | $23,605,557 | |
Class C Shares: | ||||||
Shares sold | 631,107 | $ 7,957,364 | 1,028,622 | $12,683,048 | ||
Reinvested dividends and distributions | 13,321 | 165,087 | 7,052 | 85,609 | ||
Shares repurchased | (210,490) | (2,603,960) | (233,632) | (2,922,344) | ||
Net Increase/(Decrease) | 433,938 | $ 5,518,491 |
| 802,042 | $ 9,846,313 | |
Class D Shares: | ||||||
Shares sold | 1,950,610 | $24,817,454 | 4,575,397 | $56,832,685 | ||
Reinvested dividends and distributions | 75,032 | 937,648 | 54,399 | 665,204 | ||
Shares repurchased | (2,068,457) | (25,705,492) | (962,183) | (11,943,253) | ||
Net Increase/(Decrease) | (42,815) | $ 49,610 |
| 3,667,613 | $45,554,636 | |
Class I Shares: | ||||||
Shares sold | 3,243,429 | $41,442,341 | 2,291,111 | $28,481,961 | ||
Reinvested dividends and distributions | 60,283 | 756,089 | 23,575 | 291,154 | ||
Shares repurchased | (2,058,420) | (25,597,671) | (241,156) | (3,023,072) | ||
Net Increase/(Decrease) | 1,245,292 | $16,600,759 |
| 2,073,530 | $25,750,043 | |
Class S Shares: | ||||||
Shares sold | 4,010 | $ 52,000 | 13,428 | $ 168,151 | ||
Reinvested dividends and distributions | 393 | 4,916 | 610 | 7,311 | ||
Shares repurchased | (2,449) | (30,464) | (3,636) | (45,250) | ||
Net Increase/(Decrease) | 1,954 | $ 26,452 |
| 10,402 | $ 130,212 | |
Class T Shares: | ||||||
Shares sold | 3,492,410 | $44,360,774 | 4,226,424 | $52,898,744 | ||
Reinvested dividends and distributions | 75,122 | 937,951 | 31,787 | 393,645 | ||
Shares repurchased | (2,259,807) | (28,451,119) | (851,173) | (10,186,744) | ||
Net Increase/(Decrease) | 1,307,725 | $16,847,606 |
| 3,407,038 | $43,105,645 |
6. Purchases and Sales of Investment Securities
For the period ended December 31, 2016, 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 |
$113,201,301 | $ 57,713,457 | $ - | $ - |
Janus Investment Fund | 29 |
INTECH Global Income Managed Volatility Fund
Notes to Financial Statements (unaudited)
7. Merger Related Matters
On October 3, 2016, Janus Capital Group Inc. (JCGI), the direct parent of Janus Capital Management LLC, the investment adviser to the Fund (Janus Capital), and Henderson Group plc (Henderson) announced that they had entered into an Agreement and Plan of Merger (Merger Agreement) relating to the strategic combination of Henderson and JCGI (the Transaction). Pursuant to the Merger Agreement, a newly formed, direct wholly-owned subsidiary of Henderson will merge with and into JCGI, with JCGI as the surviving corporation and a direct wholly-owned subsidiary of Henderson. The Transaction is currently expected to close in the second quarter of 2017, subject to requisite shareholder and regulatory approvals.
The consummation of the Transaction may be deemed to be an assignment (as defined in the Investment Company Act of 1940, as amended) of the current advisory agreement between Janus Capital and the Fund. In addition, the consummation of the Transaction may be deemed to be an assignment of the current sub-advisory agreements between Janus Capital and each of INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins), the subadvisers to certain funds. As a result, the consummation of the Transaction may cause such investment advisory agreements and investment sub-advisory agreements to terminate automatically in accordance with their respective terms.
On December 8, 2016, the Board of Trustees of the Fund (the Board of Trustees) approved, subject to approval of shareholders, a new investment advisory agreement between the Fund and Janus Capital in order to permit Janus Capital to continue to provide advisory services to the Fund following the closing of the Transaction. The new investment advisory agreement will have substantially similar terms as the corresponding current investment advisory agreement.
On December 8, 2016, the Board of Trustees approved, subject to approval of shareholders, a new investment sub-advisory agreement between Janus Capital and INTECH in order to permit INTECH to continue to provide sub-advisory services with respect to the Fund following the closing of the Transaction. The new investment sub-advisory agreement will have substantially similar terms as the corresponding current investment sub-advisory agreement.
On December 8, 2016, the Board of Trustees also approved interim investment advisory agreements between the Fund and Janus Capital and interim sub-advisory agreements between Janus Capital and the Funds subadviser, as applicable. In the event shareholders of the Fund do not approve the new investment advisory agreement (and, if applicable, the new investment sub-advisory agreement) prior to the closing of the Transaction, an interim investment advisory agreement (and, if applicable, an interim investment sub-advisory agreement) will take effect with respect to the Fund upon the closing of the Transaction. Such interim agreements will continue in effect for a term ending on the earlier of 150 days from the closing of the Transaction, or when shareholders of the Fund approve the new investment advisory agreement and new investment sub-advisory agreement, if applicable. Compensation earned by Janus Capital and the Funds subadviser, if applicable, under their respective interim investment advisory agreement or interim investment sub-advisory agreement will be held in an interest-bearing escrow account and will be paid to Janus Capital or the subadviser, as applicable, if shareholders approve the corresponding new investment advisory agreement or new investment sub-advisory agreement prior to the end of the interim period. Except for the term and escrow provisions described above, the terms of each interim investment advisory agreement and interim investment subadvisory agreement are substantially similar to those of the corresponding current investment advisory agreement or current investment sub-advisory agreement.
In addition, the Funds name will change to reflect Janus Henderson as part of the Funds name.
Shareholders of record of the Fund as of December 29, 2016, will receive a proxy statement, notice of special meeting of shareholders, and proxy card, containing detailed information regarding shareholder proposals with respect to these and certain other matters. The shareholder meeting is expected to be held on or about April 6, 2017.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2016 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, 2016 |
INTECH Global Income Managed Volatility Fund
Notes to Financial Statements (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 and Sub-Advisory Agreements with Janus and Janus Affiliates during the Period
On September 15, 2016, Janus Capital Group Inc. (Janus) advised the Trustees of Janus Investment Fund (the Trust), each of whom serves as an independent Trustee (the Board or the Trustees), of its intent to seek a strategic combination of its advisory business with Henderson Group plc (Henderson). The Board met with the Chief Executive Officer of Janus, who outlined the proposed combination and the potential benefits to Janus Capital Management LLC (Janus Capital) and each Fund of the Trust (each, a Fund and collectively, the Funds). Subsequent to the September 15, 2016 meeting, the Trustees identified a list of basic principles, which they believed should serve as the foundation for their review of the organizational, operational and strategic issues involved with any potential change in control of Janus Capital, the investment adviser to the Funds. These basic principles were communicated to Janus Capital on September 27, 2016, and were intended to be shared with Henderson. On October 3, 2016, Janus announced that it had entered into a definitive Agreement and Plan of Merger with Henderson pursuant to which Janus and Henderson agreed to effect an all-stock merger of equals strategic combination of their respective businesses, with Janus Capital surviving the merger as a direct wholly-owned subsidiary of Henderson (the Transaction). The Board was advised that, subject to certain conditions, the Transaction is currently expected to close during the second quarter of 2017.
As part of its due diligence, the Board developed an initial list of questions related to the proposed transaction, which was provided to Janus Capital on October 6, 2016. At a special Board meeting held on October 19, 2016, the Board considered Janus Capitals response to the initial information request and met with the management of Janus to discuss the impact of the Transaction on the nature, extent and quality of services Janus Capital is expected to provide to the Janus Funds following the Transaction, addressing, among other matters, the personnel expected to provide such services, and the resources available to do so. After its October 19, 2016 meeting, the Board developed a supplemental request for additional information, which was provided to Janus Capital on October 26, 2016. At another special Board meeting held on November 7-8, 2016, the Board considered Janus Capitals response to the supplemental information request and again met with the management of Janus and Henderson to discuss the impact of the Transaction on the nature, extent and quality of services Janus Capital is expected to provide to the Janus Funds following the Transaction, and also met with various officers of the Funds and of Janus Capital, including various Fund portfolio managers. After its November 7-8, 2016 meeting, the Board developed a second supplemental request for additional information, which was provided to Janus Capital on November 21, 2016. On December 7-8, 2016, the Board met to consider Janus Capitals response to the second supplemental information request and to also consider the proposed new investment advisory agreements between the Trust, on behalf of each Fund, and Janus Capital (each, a New Advisory Agreement and collectively, the New Advisory Agreements) and the new sub-advisory agreements between Janus Capital and each of the Funds that utilize INTECH Investment Management LLC (INTECH), Perkins Investment Management LLC (Perkins), or Janus Singapore Pte. Limited (Janus Singapore, and together with INTECH and Perkins, the Sub-Advisers and each, a Sub-Adviser) as sub-advisers (each, a New Sub-Advisory Agreement and collectively, the New Sub-Advisory Agreements) to take effect immediately after the Transaction or shareholder approval, whichever is later. During each of these meetings, the Board sought additional and clarifying information as it deemed necessary or appropriate. In addition, the Board engaged its independent fee consultant to help evaluate certain of the proposals that the Board was being asked to consider. Throughout the process, the Board had the assistance of its independent legal counsel, who advised them on, among other things, its duties and obligations.
Janus Investment Fund | 31 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
In connection with the Boards review, Janus Capital provided, and the Board obtained, substantial information regarding the following matters: the management, financial position and business of Henderson; the history of Hendersons business and operations; the investment performance of the investment companies advised by Henderson; the proposed structure, operations and investment processes of the combined investment management organization after the Transaction and the strategy for operating and growing the business following the Transaction; the future plans of Janus and Henderson with respect to the Funds and any proposed changes to the operations or structure of the Funds; and the future plans of Janus and Henderson with respect to the provision of services to the Funds, and the entities providing such services, including those affiliated with Janus. The Board also received information regarding the terms of the Transaction, anticipated management of the combined organization, the resources that each of Janus and Henderson bring to the combined organization and the process being followed by Janus and Henderson to integrate their organizations. The Board also received information regarding the impact of the Transaction on each of INTECH, Perkins and Janus Singapore.
In connection with the Boards approval of New Advisory Agreements and New Sub-Advisory Agreements at its December 8, 2016 meeting, the Board also continued its on-going annual process to determine whether to continue the existing investment advisory agreements between Janus Capital and the Trust on behalf of each Fund (each, a Current Advisory Agreement and collectively, the Current Advisory Agreements) and the existing sub-advisory agreements between Janus Capital and each of the Funds that utilize INTECH, Perkins, or Janus Singapore as sub-advisers (each, a Current Sub-Advisory Agreement and collectively, the Current Sub-Advisory Agreements). In this regard, the Board received and reviewed information provided by Janus and the respective Sub-Advisers in response to requests of the Board and its independent legal counsel. The Board also received and reviewed information and analysis provided by, and in response to requests of, its independent fee consultant. The Board noted that as part of this annual process, the Board had considered and was in the process of considering, numerous factors, including the nature and quality of services provided by Janus Capital and each Sub-Adviser, as applicable; investment performance, on an absolute basis and relative to appropriate peer groups and one or a combination of market indices; investment management fees, expense ratios and asset sizes of the Funds and peer groups; investment management fees charged to comparable investment companies, separate accounts and non-fund clients; Janus Capitals profitability from managing the Funds; fall-out benefits to Janus Capital from its relationship to the Funds, including revenues derived from services provided to the Funds by affiliates of Janus Capital; and the potential benefits to Janus Capital, the Funds of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms.
In determining whether to approve the New Advisory Agreement for each Fund and the New Sub-Advisory Agreement for Funds managed by INTECH, Perkins or Janus Singapore in connection with the Transaction, and whether to recommend approval to Fund shareholders, the Board received information and made inquiries into all matters as it deemed appropriate. The Board reviewed and analyzed various factors it deemed relevant, including the following factors, among others, none of which by itself was considered dispositive:
· The terms of the New Advisory Agreements are substantially similar to the corresponding Current Advisory Agreements, and the contractual fee rate will not change. In this regard, see the discussion of the Boards considerations with respect to its most recent approval of the Current Advisory Agreements prior to December 8, 2016, as disclosed in each Funds most recent prior annual or semi-annual shareholder report, as applicable.
· The terms of the New Sub-Advisory Agreements are substantially similar to the corresponding Current Sub-Advisory Agreements, and the contractual fee rate will not change. In this regard, see the discussion of the Boards considerations with respect to its most recent approval of the Current Sub-Advisory Agreements prior to December 8, 2016, as disclosed in each Funds most recent prior annual or semi-annual shareholder report, as applicable.
· Janus Capitals plans for the operation of the Funds, including its plans for the continued provision of all services currently provided to the Funds by Janus Capital and its affiliates, including, among others, investment advisory services, portfolio trading services, and Fund administrative and accounting services, and the personnel and resources proposed to support the provision of such services.
· The estimated profitability to Janus Capital from managing the Funds after the Transaction, including potential economies of scale and fall-out benefits to Janus Capital from its relationship to the Funds, including revenues derived from services provided to the Funds by affiliates of Janus Capital, and the potential benefits to Janus
32 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
Capital, and the Funds of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms.
In connection with its deliberations, the Board received assurances from Janus, on behalf of itself and its affiliates (collectively, Janus) including the following:
· Janus has provided to the Board such information as it believes is reasonably necessary to evaluate the New Advisory Agreements and New Sub-Advisory Agreements.
· Janus is committed to the continuance, without interruption, of services to the Funds of at least the type and quality currently provided by Janus Capital and its affiliates, or superior thereto.
· The Transaction is not expected to affect negatively the nature, extent or quality of the investment advisory services provided by Janus Capital to the Funds following the Transaction, and the investment advisory services are expected to be at least comparable to the services being provided under the Current Advisory Agreements and Current Sub-Advisory Agreements. In this regard, the Board noted specific representations that Janus does not intend for the nature, extent or quality of investment advisory and other services to be provided to the Funds following the Transaction to change, and the extent of such services were expected to increase based on the combined resources of the combined investment management organization after the Transaction, and should the nature, extent or quality of such services decline, Janus would commit the resources needed to return such services to pre-Transaction levels.
· The Funds current operations were expected to remain largely unchanged, except for certain fund reorganizations which will be separately considered by the Board, and such other changes as were or will be presented to the Board.
· Janus does not intend to make changes to the portfolio managers providing services to the Funds, other than proposed changes in the management of certain Funds as discussed with the Board, including those related to proposals to merge certain Funds with Funds managed by Henderson Global Investors (North America) Inc., an indirect, wholly-owned subsidiary of Henderson, and subject to such changes as may arise at any time as a result of the ongoing process of portfolio manager evaluation.
· After the Transaction, the extent of distribution and marketing services provided to the Janus Funds were expected to increase based on the combined resources of Janus and Henderson. In this regard, Janus Capital advised the Board that after the Transaction, the extent of distribution and marketing services provided to the Janus Funds are expected to increase based on the combined resources of Janus and Henderson. This is due primarily to the anticipated increase of sales related resources and expanded global presence of the combined Janus Henderson organization, which is expected to enhance visibility and brand recognition of the Janus Henderson Funds.
· The intent of Janus Capital to take the necessary and appropriate steps to retain and attract its key investment advisory personnel.
· The intent of Janus to take the necessary and appropriate steps to retain and attract its key compliance, financial, fund accounting and administrative personnel supporting the management and oversight of the Funds.
· Janus is not aware of any express or implied term, condition, arrangement or understanding that would impose in its best judgement an unfair burden on any Fund as a result of the Transaction, as defined in Section 15(f) of the 1940 Act, and that Janus will take no action that would have the effect of imposing such an unfair burden on any Fund in connection with the Transaction.
Janus assured the Board that it intended to comply with Section 15(f) of the Investment Company Act of 1940, as amended (the 1940 Act). Section 15(f) provides a non-exclusive safe harbor for an investment adviser to an investment company or any of its affiliated persons to receive any amount or benefit in connection with a change in control of the investment adviser so long as two conditions are met. First, for a period of three years after the transaction, at least 75% of the board members of the investment company must not be interested persons of such investment adviser (as defined under the 1940 Act). The composition of the Board is in compliance with this provision of Section 15(f). In addition, after careful review and consideration, the Board determined that it would be in the best interests of the Funds to add to the Board an individual who currently acts as a non-interested board member of the
Janus Investment Fund | 33 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
Henderson Trust. The Board believes that this change in the Board composition will provide perspective and insight relating to experience working with the Henderson organization. The Boards Nominating and Governance Committee considered a number of candidates and recommended that the Board nominate one proposed new trustee from those candidates who currently act as non-interested board members of the Henderson Trust. The Board approved that trustee nominee to serve on the Board, subject to election by the shareholders of the Funds and contingent on the closing of the Transaction. If the new trustee is elected and serves on the Board, the Board composition would continue to satisfy the provisions of Section 15(f).
To meet the second condition of Section 15(f), an unfair burden must not be imposed upon the investment company as a result of such transaction or any express or implied terms, conditions or understandings applicable thereto. The term unfair burden is defined in Section 15(f) to include any arrangement during the two-year period after the transaction, whereby the investment adviser, or any interested person of such adviser, receives or is entitled to receive any compensation, directly or indirectly, from the investment company or its shareholders (other than fees for bona fide investment advisory or other services) or from any person in connection with the purchase or sale of securities or other property to, from or on behalf of the investment company (other than bona fide ordinary compensation as principal underwriter for such investment company).
Janus represented that it does not believe that an unfair burden will be placed on the Funds as a result of the Transaction. In furtherance thereof, Janus has undertaken to pay the costs of preparing and distributing proxy materials to, and of holding the meetings of, the Funds shareholders (the Meetings), as well as other fees and expenses in connection with the Transaction, including the reasonable fees and expenses of legal counsel and consultants to the Funds and the Trustees. In addition, Janus has agreed, for a period of two years following the closing of the Transaction, (i) not to request any increases to advisory fees for the Funds, other than those proposed to and approved by the Board prior to the close of the Transaction, and (ii) to continue to use the current process by which expense caps are set annually for the Funds.
As a result of its review and consideration of the New Investment Advisory Agreements and New Sub-Advisory Agreements in connection with the Transaction, at a meeting on December 8, 2016, the Board voted unanimously to approve a New Investment Advisory Agreement for each Fund and a New Sub-Advisory Agreement for each Fund managed by INTECH, Perkins or Janus Singapore, and to recommend such agreements to the Funds shareholders for their approval.
Approval of Interim Advisory and Sub-Advisory Agreements with Janus and Janus Affiliates during the Period
In the event shareholders of a Fund do not approve such Funds New Advisory Agreement and/or New Sub-Advisory Agreement at the Meetings prior to the closing of the Transaction, Janus Capital proposed that an interim investment advisory agreement between Janus Capital and such Fund (each, an Interim Advisory Agreement and collectively, the Interim Advisory Agreements) and an interim sub-advisory agreement between Janus Capital and the applicable Sub-Adviser (each, an Interim Sub-Advisory Agreement and collectively, the Interim Sub-Advisory Agreements) take effect upon the closing of the Transaction. At the December 8, 2016 meeting, the Board, all of whom are Independent Trustees, unanimously approved an Interim Advisory Agreement for each Fund and an Interim Sub-Advisory Agreement for each applicable Fund in order to assure continuity of investment advisory services to the Funds and sub-advisory services to the sub-advised Funds after the Transaction. The terms of each Interim Advisory Agreement are substantially identical to those of the applicable Current Advisory Agreement and New Advisory Agreement, except for the term and escrow provisions described below. Similarly, the terms of each Interim Sub-Advisory Agreement are substantially identical to those of the Current Sub-Advisory Agreements and New Sub-Advisory Agreements, except for the term and escrow provisions described below. The Interim Advisory Agreement and Interim Sub-Advisory Agreement will continue in effect for a term ending on the earlier of 150 days from the closing of the Transaction (the 150-day period) or when shareholders of the Fund approve the New Advisory Agreement and/or New Sub-Advisory Agreement. Pursuant to Rule 15a-4 under the 1940 Act, compensation earned by Janus Capital under an Interim Advisory Agreement and compensation earned by a Sub-Adviser under an Interim Sub-Advisory Agreement will be held in an interest-bearing escrow account. If shareholders of a Fund approve the New Advisory Agreement prior to the end of the 150-day period, the amount held in the escrow account under the Interim Advisory Agreement will be paid to Janus Capital. If shareholders of a Fund approve the New Advisory Agreement and New Sub-Advisory Agreement prior to the end of the 150-day period, the amount held in the escrow account under the Interim Sub-Advisory Agreement will be paid to the Sub-Adviser. If shareholders of a Fund do not approve the New Advisory Agreement prior to the end of the 150-day period, the Board will take such action as it
34 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
deems to be in the best interests of the Fund, and Janus Capital will be paid the lesser of its costs incurred in performing its services under the Interim Advisory Agreement or the total amount in the escrow account, plus interest earned. If shareholders of a Fund do not approve the New Advisory Agreement and/or New Sub-Advisory Agreement prior to the end of the 150-day period, the Board will take such action as it deems to be in the best interests of the Fund, and the Sub-Adviser will be paid the lesser of its costs incurred in performing its services under the Interim Sub-Advisory Agreement or the total amount in the escrow account, plus interest earned.
Approval of Sub-Advisory Agreements with Henderson Investment Management Limited during the Period
Janus Capital met with the Trustees on November 7-8, 2016, and December 7-8, 2016, to discuss the approval of a new sub-advisory agreement between Janus Capital and Henderson Investment Management Limited (HIML) (each, a HIML Sub-Advisory Agreement and collectively, the HIML Sub-Advisory Agreements) on behalf of each of Janus Asia Equity Fund, Janus Emerging Markets Fund, and Janus Global Real Estate Fund (each, an HIML Fund and together, the HIML Funds) to take effect immediately after the closing of the Transaction or shareholder approval, whichever is later. At the meetings, the Trustees also discussed the HIML Sub-Advisory Agreements with their independent counsel in executive session. During the course of these meetings, the Trustees requested and considered such information as they deemed relevant to their deliberations. In addition, at prior meetings and during the course of these meetings the Board also undertook a comprehensive process to evaluate the impact of the Transaction on the nature, quality and extent of services expected to be provided by Janus Capital and HIML to each HIML Fund, including after the completion of the Transaction. For a fuller discussion of the Boards consideration of the approval of a new investment advisory agreement for the HIML Funds in connection with the Transaction, see Approval of Advisory and Sub-Advisory Agreements with Janus and its Affiliates During the Period above.
At a meeting of the Board of Trustees held on December 8, 2016, the Trustees considered the HIML Sub-Advisory Agreements. In determining whether to approve the HIML Sub-Advisory Agreements, and whether to recommend approval to the shareholders of each HIML Fund, the Board received information and made inquiries into all matters as it deemed appropriate. The Board reviewed and analyzed various factors it deemed relevant, including the following factors, among others, none of which by itself was considered dispositive:
· the terms of each HIML Sub-Advisory Agreement;
· the nature, quality and extent of services expected to be provided under the HIML Sub-Advisory Agreements, including the reputation, qualifications and background of HIML and its operational and compliance infrastructures;
· the investment approach, the experience and skills of senior management and investment personnel of HIML, including the portfolio managers who would be responsible for managing all or part of the portfolio of each HIML Fund, noting the resources made available to such personnel;
· the ability of HIML to attract and retain high-quality personnel and the organizational depth of HIML;
· the sub-advisory fee rate under each HIML Sub-Advisory Agreement, as well as the overall management fee structure of each HIML Fund, noting that the sub-advisory fee rate is consistent with the approach utilized in the Janus Funds complex for other sub-advisory relationships, taking into account the allocation of managed assets between Janus Capital and HIML for the Global Real Estate Fund;
· under each HIML Sub-Advisory Agreement, Janus Capital would be responsible for paying HIML out of its fees;
· the fall out benefits to HIML and its affiliates from its relationship with each HIML Fund, including the potential benefits to HIML and its affiliates and each HIML Fund of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms;
· the potential for economies of scale with respect to the overall fee structure of each HIML Fund and whether either Fund will benefit from any economies of scale; and
· the costs of seeking approval of the HIML Sub-Advisory Agreements will not be borne by the HIML Funds.
As a result of its review and consideration of each HIML Sub-Advisory Agreement and related matters, on December 8, 2016, the Board voted unanimously to approve each HIML Sub-Advisory Agreement and to recommend such agreement to each HIML Funds shareholders for their approval.
Janus Investment Fund | 35 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
Renewal of Investment Advisory and Sub-Advisory Agreements for INTECH U.S. Core Fund
As noted above, at its December 8, 2016 meeting, the Board continued its on-going annual process to determine whether to continue the Current Advisory Agreements and the Current Sub-Advisory Agreements. In this regard, the Board received and reviewed information provided by Janus and the respective Sub-Advisers in response to requests of the Board and its independent legal counsel. The Board also received and reviewed information and analysis provided by, and in response to requests of, its independent fee consultant. The Board noted that the Current Advisory Agreement between the Trust, on behalf of INTECH U.S. Core Fund, and Janus Capital and the Current Sub-Advisory Agreement between Janus Capital and INTECH, on behalf of the Fund, would expire on January 1, 2017, if not renewed. The Board noted that the date of termination for the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds was February 1, 2017, if not renewed. Accordingly, the Board voted unanimously to renew the Current Advisory Agreement and the Current Sub-Advisory Agreement for INTECH U.S. Core Fund through January 31, 2017 in order to (i) align the termination date of such Agreements with the termination date of the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds and (ii) allow for a more complete consideration of such Agreements, as well as the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds.
36 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Additional Information (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, 2016. 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, swaptions, 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 | 37 |
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. Also included are ratios of expenses and net investment income to average net assets.
38 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
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 | 39 |
INTECH Global Income Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
NotesPage1
40 | DECEMBER 31, 2016 |
INTECH Global Income Managed Volatility Fund
Notes
NotesPage2
Janus Investment Fund | 41 |
INTECH Global Income Managed Volatility Fund
Notes
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-0217-7546 | 125-24-93013 02-17 |
42 | DECEMBER 31, 2016 |
SEMIANNUAL REPORT December 31, 2016 | |||
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)
FUND SNAPSHOT INTECHs active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC | ||||
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2016, INTECH International Managed Volatility Funds Class I Shares returned -5.95%. This compares to the 5.67% 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 advanced by 5.67% for the six-month period ending December 31, 2016. INTECH International Managed Volatility Fund underperformed the MSCI EAFE Index over the period and generated a return of -5.95%.
The Funds defensive positioning acted as significant headwind to relative performance as investors risk appetites increased in international equity markets during the period. On average, the Fund was overweight lower volatility stocks, or stocks with a lower total risk (standard deviation of returns), as well as lower beta stocks, or stocks with lower sensitivity to market movements. During the period, higher volatility and higher beta stocks strongly outperformed lower volatility and lower beta stocks, as well as the overall market, on average. Consequently, the Funds overweight to lower volatility and lower beta stocks detracted from the Funds relative return for 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 Fund was adversely impacted by an average underweight allocation to the financials sector, which was the strongest performing sector during the period, as well as average overweight allocations to the real estate and utilities sectors. Stock selection, which is a residual of the investment process, also detracted from the Funds relative performance during the period, especially within the industrials, consumer discretionary, and materials 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. While the 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 during the period, the Fund was negatively impacted by its current defensive positioning and underperformed during the period.
Janus Investment Fund | 1 |
INTECH International Managed Volatility Fund (unaudited)
OUTLOOK
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Managing downside exposure potentially allows for returns to compound and improve risk-adjusted returns over time. Over the long term, we believe that by reducing risk when market volatility increases and behaving like a core equity fund when market volatility is low, the Fund will achieve its investment objective of producing an excess return over the benchmark with lower absolute risk. 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.
2 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund (unaudited)
Fund At A Glance
December 31, 2016
5 Largest Equity Holdings - (% of Net Assets) | |
CLP Holdings Ltd | |
Electric Utilities | 2.4% |
adidas AG | |
Textiles, Apparel & Luxury Goods | 2.3% |
Nestle SA | |
Food Products | 1.8% |
Link REIT | |
Equity Real Estate Investment Trusts (REITs) | 1.6% |
Nippon Building Fund Inc | |
Equity Real Estate Investment Trusts (REITs) | 1.4% |
9.5% |
Asset Allocation - (% of Net Assets) | |||||
Common Stocks | 99.6% | ||||
Investment Companies | 1.3% | ||||
Preferred Stocks | 0.2% | ||||
Other | (1.1)% | ||||
100.0% |
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2016 | As of June 30, 2016 |
Janus Investment Fund | 3 |
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, 2016 |
|
| per the October 28, 2016 prospectuses | |||||||
|
| Fiscal
| One
| Five
| Since |
|
| Total Annual Fund
| Net Annual Fund
| |
Class A Shares at NAV |
| -5.98% | -4.42% | 6.60% | -0.04% |
|
| 1.24% | 1.24% | |
Class A Shares at MOP |
| -11.43% | -9.94% | 5.35% | -0.65% |
|
|
|
| |
Class C Shares at NAV | -6.37% | -5.16% | 6.36% | -0.32% |
|
| 1.94% | 1.94% | ||
Class C Shares at CDSC |
| -7.30% | -6.10% | 6.36% | -0.32% |
|
|
|
| |
Class D Shares(1) |
| -5.95% | -4.37% | 6.83% | -0.02% |
|
| 1.17% | 1.10% | |
Class I Shares |
| -5.95% | -4.25% | 6.92% | 0.12% |
|
| 0.87% | 0.87% | |
Class N Shares |
| -5.95% | -4.25% | 6.92% | 0.12% |
|
| 0.86% | 0.86% | |
Class S Shares |
| -6.10% | -4.66% | 6.63% | -0.07% |
|
| 1.40% | 1.40% | |
Class T Shares |
| -5.92% | -4.34% | 6.67% | -0.77% |
|
| 1.16% | 1.16% | |
MSCI EAFE Index |
| 5.67% | 1.00% | 6.53% | -0.10% |
|
|
|
| |
Morningstar Quartile - Class I Shares |
| - | 3rd | 2nd | 3rd |
|
|
|
| |
Morningstar Ranking - based on total returns for Foreign Large Blend Funds |
| - | 252/372 | 104/313 | 183/265 |
|
|
|
|
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.
4 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund (unaudited)
Performance
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 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.
See Financial Highlights for actual expense ratios during the reporting period.
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.
Class N Shares commenced operations on October 28, 2016. Performance shown for periods prior to October 28, 2016, reflects the historical performance of the Funds and predecessor funds Class I Shares, calculated using the fees and expenses of Class I 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.
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.
© 2016 Morningstar, Inc. All Rights Reserved.
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.
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.
Janus Investment Fund | 5 |
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 | $940.20 | $5.28 |
| $1,000.00 | $1,019.76 | $5.50 | 1.08% | ||
Class C Shares | $1,000.00 | $936.30 | $8.98 |
| $1,000.00 | $1,015.93 | $9.35 | 1.84% | ||
Class D Shares | $1,000.00 | $940.50 | $4.55 |
| $1,000.00 | $1,020.52 | $4.74 | 0.93% | ||
Class I Shares | $1,000.00 | $940.50 | $3.62 |
| $1,000.00 | $1,021.48 | $3.77 | 0.74% | ||
Class N Shares | $1,000.00 | $940.50 | $1.43 |
| $1,000.00 | $1,021.02 | $4.23 | 0.83% | ||
Class S Shares | $1,000.00 | $939.00 | $5.96 |
| $1,000.00 | $1,019.06 | $6.21 | 1.22% | ||
Class T Shares | $1,000.00 | $940.80 | $4.75 |
| $1,000.00 | $1,020.32 | $4.94 | 0.97% | ||
* | Actual Expenses Paid During Period for Class N Shares reflect only the inception period for the Fund (October 28, 2016 to December 31, 2016) and are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 65/365 (to reflect the period). Therefore, actual expenses shown are lower than would be expected for a six-month period. For all other share classes, the Actual Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). | |||||||||
| Hypothetical Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Funds prospectuses for more information regarding waivers and/or reimbursements. |
6 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks 99.6% | |||||||
Aerospace & Defense 1.4% | |||||||
Elbit Systems Ltd | 1,306 | $131,957 | |||||
Thales SA | 14,068 | 1,362,907 | |||||
1,494,864 | |||||||
Air Freight & Logistics 0.1% | |||||||
Yamato Holdings Co Ltd | 3,900 | 79,070 | |||||
Airlines 0.5% | |||||||
Singapore Airlines Ltd | 85,700 | 570,941 | |||||
Auto Components 1.4% | |||||||
Aisin Seiki Co Ltd | 1,100 | 47,610 | |||||
Bridgestone Corp | 9,000 | 323,791 | |||||
Denso Corp | 1,700 | 73,448 | |||||
Koito Manufacturing Co Ltd | 2,600 | 137,311 | |||||
NOK Corp | 4,300 | 86,860 | |||||
Stanley Electric Co Ltd | 18,900 | 515,240 | |||||
Sumitomo Rubber Industries Ltd | 11,100 | 175,611 | |||||
Yokohama Rubber Co Ltd | 7,200 | 128,368 | |||||
1,488,239 | |||||||
Automobiles 0.8% | |||||||
Ferrari NV | 2,445 | 142,222 | |||||
Suzuki Motor Corp | 9,400 | 330,009 | |||||
Toyota Motor Corp | 4,300 | 251,064 | |||||
Yamaha Motor Co Ltd | 8,400 | 184,323 | |||||
907,618 | |||||||
Banks 4.3% | |||||||
ABN AMRO Group NV | 2,276 | 50,406 | |||||
Bank Hapoalim BM | 157,423 | 934,974 | |||||
Bank Leumi Le-Israel BM* | 152,575 | 627,349 | |||||
Bank of East Asia Ltd | 38,200 | 145,736 | |||||
Bendigo & Adelaide Bank Ltd | 21,068 | 192,734 | |||||
BNP Paribas SA | 787 | 50,126 | |||||
BOC Hong Kong Holdings Ltd | 138,500 | 495,882 | |||||
CaixaBank SA | 9,130 | 30,156 | |||||
Danske Bank A/S | 953 | 28,909 | |||||
Hang Seng Bank Ltd | 62,700 | 1,162,121 | |||||
HSBC Holdings PLC | 40,335 | 326,080 | |||||
Mizrahi Tefahot Bank Ltd | 9,394 | 137,235 | |||||
Nordea Bank AB | 8,168 | 90,847 | |||||
Raiffeisen Bank International AG* | 7,916 | 144,790 | |||||
Resona Holdings Inc | 6,800 | 35,002 | |||||
Skandinaviska Enskilda Banken AB | 3,078 | 32,292 | |||||
Suruga Bank Ltd | 1,500 | 33,398 | |||||
Svenska Handelsbanken AB | 4,518 | 62,801 | |||||
Swedbank AB | 1,368 | 33,078 | |||||
Yamaguchi Financial Group Inc | 6,000 | 65,205 | |||||
4,679,121 | |||||||
Beverages 1.0% | |||||||
Asahi Group Holdings Ltd | 1,100 | 34,687 | |||||
Coca-Cola Amatil Ltd | 4,706 | 34,312 | |||||
Coca-Cola European Partners PLC | 2,707 | 85,400 | |||||
Kirin Holdings Co Ltd | 56,500 | 917,410 | |||||
1,071,809 | |||||||
Biotechnology 2.4% | |||||||
Actelion Ltd* | 6,585 | 1,423,753 | |||||
CSL Ltd | 16,710 | 1,206,882 | |||||
2,630,635 | |||||||
Building Products 0.5% | |||||||
Daikin Industries Ltd | 1,900 | 174,024 | |||||
Geberit AG | 686 | 274,613 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Building Products (continued) | |||||||
LIXIL Group Corp | 6,200 | $140,520 | |||||
589,157 | |||||||
Capital Markets 1.3% | |||||||
Partners Group Holding AG | 3,057 | 1,431,114 | |||||
Chemicals 7.8% | |||||||
Air Water Inc | 6,300 | 113,445 | |||||
Arkema SA | 1,437 | 140,366 | |||||
Asahi Kasei Corp | 86,000 | 748,819 | |||||
BASF SE | 504 | 46,997 | |||||
Chr Hansen Holding A/S | 961 | 53,168 | |||||
Covestro AG | 5,867 | 403,553 | |||||
EMS-Chemie Holding AG | 1,270 | 645,473 | |||||
Givaudan SA | 299 | 547,939 | |||||
Hitachi Chemical Co Ltd | 4,300 | 107,317 | |||||
JSR Corp | 14,700 | 231,323 | |||||
Kansai Paint Co Ltd | 19,200 | 353,135 | |||||
Koninklijke DSM NV | 2,088 | 124,983 | |||||
Kuraray Co Ltd | 17,300 | 258,909 | |||||
LANXESS AG | 2,022 | 132,467 | |||||
Mitsubishi Chemical Holdings Corp | 5,100 | 32,869 | |||||
Mitsubishi Gas Chemical Co Inc | 28,600 | 487,048 | |||||
Mitsui Chemicals Inc | 61,000 | 273,326 | |||||
Nippon Paint Holdings Co Ltd | 6,200 | 168,054 | |||||
Nissan Chemical Industries Ltd | 8,200 | 273,396 | |||||
Orica Ltd | 15,871 | 201,560 | |||||
Shin-Etsu Chemical Co Ltd | 1,400 | 107,913 | |||||
Sika AG | 298 | 1,431,867 | |||||
Solvay SA | 283 | 33,116 | |||||
Symrise AG | 2,073 | 126,070 | |||||
Syngenta AG | 872 | 344,700 | |||||
Toray Industries Inc | 72,000 | 582,014 | |||||
Umicore SA | 11,471 | 652,824 | |||||
8,622,651 | |||||||
Commercial Services & Supplies 0.8% | |||||||
ISS A/S | 17,496 | 589,636 | |||||
Park24 Co Ltd | 6,800 | 184,274 | |||||
Societe BIC SA | 92 | 12,503 | |||||
Toppan Printing Co Ltd | 10,000 | 95,315 | |||||
881,728 | |||||||
Construction & Engineering 1.3% | |||||||
CIMIC Group Ltd | 4,822 | 121,204 | |||||
JGC Corp | 11,900 | 215,509 | |||||
Kajima Corp | 36,000 | 248,559 | |||||
Obayashi Corp | 24,300 | 231,604 | |||||
Skanska AB | 6,997 | 164,982 | |||||
Taisei Corp | 41,000 | 286,615 | |||||
Vinci SA | 2,624 | 178,457 | |||||
1,446,930 | |||||||
Construction Materials 0.8% | |||||||
CRH PLC | 2,251 | 77,788 | |||||
Fletcher Building Ltd | 94,824 | 696,321 | |||||
Taiheiyo Cement Corp | 24,000 | 75,743 | |||||
849,852 | |||||||
Distributors 0% | |||||||
Jardine Cycle & Carriage Ltd | 1,700 | 48,132 | |||||
Diversified Financial Services 0.1% | |||||||
L E Lundbergforetagen AB | 2,519 | 154,475 | |||||
Diversified Telecommunication Services 2.1% | |||||||
Bezeq The Israeli Telecommunication Corp Ltd | 339,720 | 645,504 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Diversified Telecommunication Services (continued) | |||||||
HKT Trust & HKT Ltd | 498,000 | $609,511 | |||||
Nippon Telegraph & Telephone Corp | 2,000 | 84,082 | |||||
Singapore Telecommunications Ltd | 52,900 | 132,791 | |||||
Spark New Zealand Ltd | 300,831 | 711,077 | |||||
TPG Telecom Ltd# | 30,448 | 149,403 | |||||
2,332,368 | |||||||
Electric Utilities 4.3% | |||||||
Cheung Kong Infrastructure Holdings Ltd | 55,000 | 437,464 | |||||
CLP Holdings Ltd | 291,500 | 2,663,653 | |||||
HK Electric Investments & HK Electric Investments Ltd | 316,500 | 260,965 | |||||
Power Assets Holdings Ltd | 153,500 | 1,352,398 | |||||
4,714,480 | |||||||
Electrical Equipment 0.7% | |||||||
ABB Ltd* | 3,421 | 72,038 | |||||
Mabuchi Motor Co Ltd | 3,100 | 161,009 | |||||
Mitsubishi Electric Corp | 12,100 | 168,231 | |||||
Nidec Corp | 4,200 | 361,247 | |||||
762,525 | |||||||
Electronic Equipment, Instruments & Components 3.2% | |||||||
Alps Electric Co Ltd | 6,400 | 154,077 | |||||
Hamamatsu Photonics KK | 2,400 | 62,964 | |||||
Hirose Electric Co Ltd | 700 | 86,574 | |||||
Hitachi High-Technologies Corp | 5,300 | 213,352 | |||||
Keyence Corp | 1,200 | 822,320 | |||||
Kyocera Corp | 900 | 44,645 | |||||
Nippon Electric Glass Co Ltd | 39,000 | 210,440 | |||||
Omron Corp | 9,200 | 352,145 | |||||
TDK Corp | 900 | 61,721 | |||||
Yaskawa Electric Corp | 51,200 | 794,282 | |||||
Yokogawa Electric Corp | 50,000 | 722,060 | |||||
3,524,580 | |||||||
Equity Real Estate Investment Trusts (REITs) 9.2% | |||||||
CapitaLand Commercial Trust | 262,800 | 267,156 | |||||
Daiwa House REIT Investment Corp | 231 | 584,215 | |||||
Dexus Property Group | 99,987 | 695,839 | |||||
Gecina SA | 1,494 | 206,520 | |||||
Japan Prime Realty Investment Corp | 132 | 520,074 | |||||
Japan Real Estate Investment Corp | 215 | 1,172,663 | |||||
Japan Retail Fund Investment Corp | 460 | 931,782 | |||||
Link REIT | 272,500 | 1,759,755 | |||||
Nippon Building Fund Inc | 276 | 1,529,523 | |||||
Nippon Prologis REIT Inc | 244 | 498,906 | |||||
Nomura Real Estate Master Fund Inc | 580 | 877,290 | |||||
Suntec Real Estate Investment Trust | 237,700 | 269,592 | |||||
United Urban Investment Corp | 453 | 689,516 | |||||
Vicinity Centres | 37,556 | 81,221 | |||||
10,084,052 | |||||||
Food & Staples Retailing 1.3% | |||||||
Colruyt SA | 10,635 | 526,024 | |||||
FamilyMart UNY Holdings Co Ltd | 8,600 | 571,428 | |||||
Koninklijke Ahold Delhaize NV | 1,253 | 26,369 | |||||
Tesco PLC* | 8,735 | 22,231 | |||||
Wesfarmers Ltd | 10,891 | 330,581 | |||||
1,476,633 | |||||||
Food Products 4.3% | |||||||
Barry Callebaut AG* | 198 | 242,392 | |||||
Chocoladefabriken Lindt & Spruengli AG (PC) | 15 | 77,713 | |||||
Chocoladefabriken Lindt & Spruengli AG (REG) | 2 | 121,514 | |||||
Marine Harvest ASA* | 34,104 | 615,409 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Food Products (continued) | |||||||
MEIJI Holdings Co Ltd | 12,800 | $1,004,259 | |||||
Nestle SA | 27,212 | 1,952,386 | |||||
NH Foods Ltd | 3,000 | 81,004 | |||||
Nissin Foods Holdings Co Ltd | 1,800 | 94,466 | |||||
Tate & Lyle PLC | 17,842 | 155,363 | |||||
Toyo Suisan Kaisha Ltd | 9,400 | 340,046 | |||||
4,684,552 | |||||||
Gas Utilities 1.8% | |||||||
Hong Kong & China Gas Co Ltd | 844,020 | 1,492,052 | |||||
Toho Gas Co Ltd | 46,000 | 373,637 | |||||
Tokyo Gas Co Ltd | 24,000 | 108,355 | |||||
1,974,044 | |||||||
Health Care Equipment & Supplies 3.5% | |||||||
Cochlear Ltd | 9,216 | 813,409 | |||||
Coloplast A/S | 1,606 | 108,091 | |||||
Hoya Corp | 1,800 | 75,451 | |||||
Sonova Holding AG | 7,900 | 956,109 | |||||
Terumo Corp | 41,300 | 1,521,767 | |||||
William Demant Holding A/S* | 21,250 | 369,555 | |||||
3,844,382 | |||||||
Health Care Providers & Services 1.7% | |||||||
Fresenius Medical Care AG & Co KGaA | 226 | 19,158 | |||||
Fresenius SE & Co KGaA | 1,839 | 143,631 | |||||
Ramsay Health Care Ltd | 10,284 | 506,846 | |||||
Ryman Healthcare Ltd | 64,337 | 362,879 | |||||
Sonic Healthcare Ltd | 51,530 | 795,089 | |||||
1,827,603 | |||||||
Health Care Technology 0.1% | |||||||
M3 Inc | 4,500 | 113,284 | |||||
Hotels, Restaurants & Leisure 2.7% | |||||||
Aristocrat Leisure Ltd | 97,361 | 1,086,106 | |||||
Carnival PLC | 898 | 45,489 | |||||
Compass Group PLC | 1,184 | 21,820 | |||||
Domino's Pizza Enterprises Ltd | 2,849 | 132,663 | |||||
Galaxy Entertainment Group Ltd | 82,000 | 352,796 | |||||
McDonald's Holdings Co Japan Ltd# | 10,900 | 284,944 | |||||
Melco Crown Entertainment Ltd (ADR) | 13,200 | 209,880 | |||||
Sands China Ltd | 40,400 | 173,760 | |||||
Sodexo SA | 1,009 | 115,930 | |||||
Tabcorp Holdings Ltd | 170,267 | 590,618 | |||||
3,014,006 | |||||||
Household Durables 1.8% | |||||||
Nikon Corp | 4,000 | 61,978 | |||||
SEB SA | 1,311 | 177,618 | |||||
Sekisui Chemical Co Ltd | 5,300 | 84,360 | |||||
Sony Corp | 24,300 | 675,410 | |||||
Techtronic Industries Co Ltd | 285,000 | 1,020,993 | |||||
2,020,359 | |||||||
Household Products 0.2% | |||||||
Lion Corp | 13,000 | 213,111 | |||||
Independent Power and Renewable Electricity Producers 0.3% | |||||||
Meridian Energy Ltd | 151,802 | 273,516 | |||||
Industrial Conglomerates 1.2% | |||||||
CK Hutchison Holdings Ltd | 33,000 | 372,560 | |||||
Koninklijke Philips NV | 1,473 | 44,892 | |||||
Toshiba Corp* | 392,000 | 947,212 | |||||
1,364,664 | |||||||
Information Technology Services 0.9% | |||||||
Atos SE | 1,947 | 205,364 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Information Technology Services (continued) | |||||||
Fujitsu Ltd | 150,000 | $830,999 | |||||
1,036,363 | |||||||
Insurance 1.1% | |||||||
AIA Group Ltd | 67,600 | 378,327 | |||||
Gjensidige Forsikring ASA | 12,977 | 206,042 | |||||
Sompo Holdings Inc | 800 | 27,017 | |||||
Swiss Life Holding AG* | 617 | 174,624 | |||||
Swiss Re AG | 3,507 | 332,354 | |||||
T&D Holdings Inc | 7,400 | 97,456 | |||||
Zurich Insurance Group AG* | 151 | 41,486 | |||||
1,257,306 | |||||||
Internet & Direct Marketing Retail 0.1% | |||||||
Rakuten Inc | 10,200 | 99,825 | |||||
Internet Software & Services 0.1% | |||||||
DeNA Co Ltd | 6,700 | 145,972 | |||||
Leisure Products 0.3% | |||||||
Bandai Namco Holdings Inc | 2,800 | 77,090 | |||||
Sega Sammy Holdings Inc | 9,600 | 142,564 | |||||
Shimano Inc | 900 | 140,889 | |||||
360,543 | |||||||
Life Sciences Tools & Services 0.9% | |||||||
Eurofins Scientific SE | 328 | 139,714 | |||||
Lonza Group AG* | 4,693 | 811,582 | |||||
951,296 | |||||||
Machinery 4.5% | |||||||
Amada Holdings Co Ltd | 4,100 | 45,662 | |||||
Atlas Copco AB - Class A | 7,528 | 228,933 | |||||
Atlas Copco AB - Class B | 4,497 | 122,451 | |||||
FANUC Corp | 4,700 | 794,875 | |||||
GEA Group AG | 2,433 | 97,509 | |||||
Hitachi Construction Machinery Co Ltd | 8,400 | 181,377 | |||||
Hoshizaki Corp | 3,200 | 252,994 | |||||
IHI Corp* | 105,000 | 272,275 | |||||
Komatsu Ltd | 29,400 | 663,678 | |||||
Makita Corp | 5,800 | 388,041 | |||||
MAN SE | 5,860 | 581,982 | |||||
Metso OYJ | 2,989 | 85,069 | |||||
Nabtesco Corp | 15,000 | 348,279 | |||||
NSK Ltd | 9,300 | 107,279 | |||||
Schindler Holding AG (PC) | 604 | 106,392 | |||||
Schindler Holding AG (REG) | 1,152 | 201,288 | |||||
SMC Corp/Japan | 200 | 47,600 | |||||
Sumitomo Heavy Industries Ltd | 35,000 | 224,801 | |||||
THK Co Ltd | 7,800 | 171,939 | |||||
4,922,424 | |||||||
Marine 0.5% | |||||||
Kuehne + Nagel International AG | 4,252 | 561,506 | |||||
Media 0.6% | |||||||
Hakuhodo DY Holdings Inc | 5,700 | 70,068 | |||||
Publicis Groupe SA | 336 | 23,176 | |||||
RTL Group SA | 1,260 | 92,339 | |||||
Singapore Press Holdings Ltd | 96,300 | 234,251 | |||||
Telenet Group Holding NV* | 3,481 | 193,110 | |||||
Toho Co Ltd/Tokyo | 1,200 | 33,918 | |||||
646,862 | |||||||
Metals & Mining 3.7% | |||||||
Alumina Ltd | 40,388 | 53,123 | |||||
Boliden AB | 7,637 | 199,040 | |||||
Fortescue Metals Group Ltd | 236,741 | 999,497 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Metals & Mining (continued) | |||||||
Fresnillo PLC | 38,859 | $576,976 | |||||
Glencore PLC* | 7,799 | 26,209 | |||||
Hitachi Metals Ltd | 15,000 | 202,721 | |||||
Newcrest Mining Ltd | 66,197 | 933,157 | |||||
Rio Tinto Ltd | 3,083 | 132,593 | |||||
Rio Tinto PLC | 591 | 22,502 | |||||
South32 Ltd | 466,855 | 921,094 | |||||
4,066,912 | |||||||
Multiline Retail 0.4% | |||||||
J Front Retailing Co Ltd | 13,800 | 185,477 | |||||
Takashimaya Co Ltd | 31,000 | 255,247 | |||||
440,724 | |||||||
Multi-Utilities 1.0% | |||||||
AGL Energy Ltd | 15,499 | 246,543 | |||||
DUET Group | 329,755 | 651,511 | |||||
National Grid PLC | 20,330 | 237,727 | |||||
1,135,781 | |||||||
Oil, Gas & Consumable Fuels 1.4% | |||||||
Caltex Australia Ltd | 6,368 | 139,778 | |||||
Idemitsu Kosan Co Ltd | 7,700 | 204,138 | |||||
Inpex Corp | 8,000 | 79,880 | |||||
Neste Oyj | 9,998 | 383,754 | |||||
OMV AG | 1,996 | 70,302 | |||||
Snam SpA | 31,060 | 127,742 | |||||
TonenGeneral Sekiyu KK | 47,000 | 494,679 | |||||
1,500,273 | |||||||
Personal Products 0.1% | |||||||
L'Oreal SA | 647 | 117,929 | |||||
Pharmaceuticals 3.0% | |||||||
Astellas Pharma Inc | 13,400 | 185,764 | |||||
AstraZeneca PLC | 3,686 | 199,871 | |||||
Merck KGaA | 4,421 | 461,312 | |||||
Mitsubishi Tanabe Pharma Corp | 32,300 | 632,786 | |||||
Novartis AG | 4,727 | 343,937 | |||||
Orion Oyj | 1,924 | 85,620 | |||||
Otsuka Holdings Co Ltd | 3,100 | 134,895 | |||||
Sumitomo Dainippon Pharma Co Ltd | 32,700 | 561,559 | |||||
Teva Pharmaceutical Industries Ltd (ADR) | 9,752 | 353,510 | |||||
UCB SA | 5,979 | 382,649 | |||||
3,341,903 | |||||||
Professional Services 0.4% | |||||||
Experian PLC | 3,485 | 67,445 | |||||
Recruit Holdings Co Ltd | 6,600 | 264,330 | |||||
SGS SA | 40 | 81,255 | |||||
413,030 | |||||||
Real Estate Management & Development 5.0% | |||||||
Azrieli Group Ltd | 6,959 | 301,336 | |||||
Cheung Kong Property Holdings Ltd | 11,000 | 66,709 | |||||
Daito Trust Construction Co Ltd | 900 | 135,189 | |||||
Deutsche Wohnen AG | 23,531 | 737,807 | |||||
Hang Lung Group Ltd | 57,000 | 198,160 | |||||
Hang Lung Properties Ltd | 102,000 | 213,582 | |||||
Hysan Development Co Ltd | 76,000 | 313,334 | |||||
New World Development Co Ltd | 936,000 | 981,157 | |||||
Sun Hung Kai Properties Ltd | 7,000 | 87,645 | |||||
Swire Properties Ltd | 102,200 | 280,057 | |||||
Swiss Prime Site AG* | 11,951 | 978,324 | |||||
Vonovia SE | 873 | 28,433 | |||||
Wharf Holdings Ltd | 97,000 | 637,475 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
12 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Real Estate Management & Development (continued) | |||||||
Wheelock & Co Ltd | 97,000 | $544,519 | |||||
5,503,727 | |||||||
Road & Rail 2.8% | |||||||
ComfortDelGro Corp Ltd | 308,800 | 524,687 | |||||
DSV A/S | 6,445 | 286,781 | |||||
Keikyu Corp | 53,000 | 613,507 | |||||
MTR Corp Ltd | 231,000 | 1,116,706 | |||||
Nagoya Railroad Co Ltd | 75,000 | 362,302 | |||||
Nippon Express Co Ltd | 28,000 | 150,418 | |||||
3,054,401 | |||||||
Semiconductor & Semiconductor Equipment 1.3% | |||||||
ASM Pacific Technology Ltd | 17,700 | 187,390 | |||||
Infineon Technologies AG | 5,334 | 92,435 | |||||
Rohm Co Ltd | 3,300 | 189,408 | |||||
STMicroelectronics NV | 45,662 | 517,639 | |||||
Tokyo Electron Ltd | 4,700 | 443,166 | |||||
1,430,038 | |||||||
Software 1.3% | |||||||
Check Point Software Technologies Ltd* | 2,700 | 228,042 | |||||
Dassault Systemes SE | 2,821 | 214,875 | |||||
Konami Holdings Corp | 14,900 | 600,427 | |||||
Nexon Co Ltd | 1,800 | 26,017 | |||||
Nintendo Co Ltd | 200 | 41,814 | |||||
Oracle Corp Japan | 2,200 | 110,722 | |||||
SAP SE | 1,878 | 164,104 | |||||
1,386,001 | |||||||
Specialty Retail 0.3% | |||||||
Fast Retailing Co Ltd | 200 | 71,364 | |||||
Nitori Holdings Co Ltd | 1,900 | 217,149 | |||||
Yamada Denki Co Ltd | 15,100 | 81,227 | |||||
369,740 | |||||||
Technology Hardware, Storage & Peripherals 0.7% | |||||||
Brother Industries Ltd | 43,700 | 785,955 | |||||
Textiles, Apparel & Luxury Goods 3.4% | |||||||
adidas AG | 15,889 | 2,510,748 | |||||
Hermes International | 1,102 | 451,869 | |||||
Kering | 875 | 196,133 | |||||
Luxottica Group SpA | 576 | 31,021 | |||||
Yue Yuen Industrial Holdings Ltd | 148,500 | 537,562 | |||||
3,727,333 | |||||||
Tobacco 0.3% | |||||||
Swedish Match AB | 10,720 | 340,729 | |||||
Trading Companies & Distributors 0.9% | |||||||
Ashtead Group PLC | 4,565 | 88,426 | |||||
ITOCHU Corp | 5,500 | 72,910 | |||||
MISUMI Group Inc | 2,500 | 41,034 | |||||
Mitsubishi Corp | 18,300 | 388,911 | |||||
Mitsui & Co Ltd | 15,500 | 212,613 | |||||
Sumitomo Corp | 13,100 | 153,910 | |||||
957,804 | |||||||
Transportation Infrastructure 1.6% | |||||||
Aena SA | 2,945 | 401,736 | |||||
SATS Ltd | 46,000 | 153,722 | |||||
Transurban Group | 155,501 | 1,157,816 | |||||
1,713,274 | |||||||
Wireless Telecommunication Services 0.1% | |||||||
NTT DOCOMO Inc | 3,700 | 84,152 | |||||
Total Common Stocks (cost $109,458,506) | 109,522,298 |
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, 2016
| Value | ||||||
Preferred Stocks 0.2% | |||||||
Chemicals 0.1% | |||||||
FUCHS PETROLUB SE | 1,700 | $71,374 | |||||
Household Products 0.1% | |||||||
Henkel AG & Co KGaA | 663 | 79,056 | |||||
Total Preferred Stocks (cost $158,772) | 150,430 | ||||||
Investment Companies 1.3% | |||||||
Investments Purchased with Cash Collateral from Securities Lending 0.3% | |||||||
Janus Cash Collateral Fund LLC, 0.4311%ºº,£ | 303,630 | 303,630 | |||||
Money Markets 1.0% | |||||||
Janus Cash Liquidity Fund LLC, 0.4708%ºº,£ | 1,140,093 | 1,140,093 | |||||
Total Investment Companies (cost $1,443,723) | 1,443,723 | ||||||
Total Investments (total cost $111,061,001) 101.1% | 111,116,451 | ||||||
Liabilities, net of Cash, Receivables and Other Assets (1.1)% | (1,183,883) | ||||||
Net Assets 100% | $109,932,568 |
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
% of | |||||
Investment | |||||
Country | Value | Securities | |||
Japan | $39,610,237 | 35.7 | % | ||
Hong Kong | 18,052,149 | 16.2 | |||
Switzerland | 13,154,359 | 11.8 | |||
Australia | 12,173,579 | 11.0 | |||
Germany | 5,788,975 | 5.2 | |||
France | 4,111,126 | 3.7 | |||
Israel | 3,359,907 | 3.0 | |||
Singapore | 2,201,272 | 2.0 | |||
New Zealand | 2,043,793 | 1.8 | |||
United Kingdom | 1,790,139 | 1.6 | |||
Belgium | 1,787,723 | 1.6 | |||
United States | 1,443,723 | 1.3 | |||
Denmark | 1,436,140 | 1.3 | |||
Sweden | 1,429,628 | 1.3 | |||
Norway | 821,451 | 0.7 | |||
Finland | 554,443 | 0.5 | |||
Spain | 431,892 | 0.4 | |||
Netherlands | 332,050 | 0.3 | |||
Italy | 300,985 | 0.3 | |||
Austria | 215,092 | 0.2 | |||
Ireland | 77,788 | 0.1 |
Total | $111,116,451 | 100.0 | % |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
14 | DECEMBER 31, 2016 |
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. |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PC | Participation Certificate |
PLC | Public Limited Company |
REG | Registered |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of December 31, 2016. |
# | Loaned security; a portion of the security is on loan at December 31, 2016. |
£ | 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, 2016. Unless otherwise indicated, all information in the table is for the period ended December 31, 2016. |
Share | Share | ||||||||||||||
Balance | Balance | Realized | Dividend | Value | |||||||||||
at 6/30/16 | Purchases | Sales | at 12/31/16 | Gain/(Loss) | Income | at 12/31/16 | |||||||||
Janus Cash Collateral Fund LLC | 427,250 | 2,950,025 | (3,073,645) | 303,630 | $ | $5,535(1) | $303,630 | ||||||||
Janus Cash Liquidity Fund LLC | 1,396,712 | 25,907,381 | (26,164,000) | 1,140,093 | | 4,451 | 1,140,093 | ||||||||
Total | $ | $9,986 | $1,443,723 | ||||||||||||
(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 Funds investments in securities and other financial instruments as of December 31, 2016. See Notes to Financial Statements for more information. | ||||||||||||
Valuation Inputs Summary | ||||||||||||
Level 2 - | Level 3 - | |||||||||||
Level 1 - | Other Significant | Significant | ||||||||||
Quotes Prices | Observable Inputs | Unobservable Inputs | ||||||||||
Assets | ||||||||||||
Investments in Securities | ||||||||||||
Common Stocks | ||||||||||||
Banks | $ | 50,406 | $ | 4,628,715 | $ | - | ||||||
Hotels, Restaurants & Leisure | 209,880 | 2,804,126 | - | |||||||||
Pharmaceuticals | 353,510 | 2,988,393 | - | |||||||||
Software | 228,042 | 1,157,959 | - | |||||||||
All Other | - | 97,101,267 | - | |||||||||
Preferred Stocks | - | 150,430 | - | |||||||||
Investment Companies | - | 1,443,723 | - | |||||||||
Total Assets | $ | 841,838 | $ | 110,274,613 | $ | - | ||||||
Janus Investment Fund | 15 |
INTECH International Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2016
See footnotes at the end of the Statement. |
|
|
|
|
|
|
|
Assets: | ||||||
Investments, at cost | $ | 111,061,001 | ||||
Unaffiliated investments, at value(1) | 109,672,728 | |||||
Affiliated investments, at value | 1,443,723 | |||||
Cash | 67,031 | |||||
Cash denominated in foreign currency(2) | 19,193 | |||||
Non-interested Trustees' deferred compensation | 2,046 | |||||
Receivables: | ||||||
Fund shares sold | 2,737,559 | |||||
Dividends | 172,428 | |||||
Foreign tax reclaims | 84,935 | |||||
Dividends from affiliates | 770 | |||||
Other assets | 1,320 | |||||
Total Assets |
|
| 114,201,733 |
| ||
Liabilities: | ||||||
Collateral for securities loaned (Note 2) | 303,630 | |||||
Payables: | | |||||
Fund shares repurchased | 3,050,177 | |||||
Investments purchased | 796,711 | |||||
Advisory fees | 54,641 | |||||
Professional fees | 21,641 | |||||
Transfer agent fees and expenses | 10,487 | |||||
Custodian fees | 4,851 | |||||
12b-1 Distribution and shareholder servicing fees | 4,551 | |||||
Non-interested Trustees' deferred compensation fees | 2,046 | |||||
Fund administration fees | 944 | |||||
Non-interested Trustees' fees and expenses | 816 | |||||
Accrued expenses and other payables | 18,670 | |||||
Total Liabilities |
|
| 4,269,165 |
| ||
Net Assets |
| $ | 109,932,568 |
|
See Notes to Financial Statements. | |
16 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2016
|
|
|
|
|
|
|
Net Assets Consist of: | ||||||
Capital (par value and paid-in surplus) | $ | 117,716,553 | ||||
Undistributed net investment income/(loss) | (1,029,833) | |||||
Undistributed net realized gain/(loss) from investments and foreign currency transactions | (6,805,582) | |||||
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees deferred compensation | 51,430 | |||||
Total Net Assets |
| $ | 109,932,568 |
| ||
Net Assets - Class A Shares | $ | 10,126,807 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,378,244 | |||||
Net Asset Value Per Share(3) |
| $ | 7.35 |
| ||
Maximum Offering Price Per Share(4) |
| $ | 7.80 |
| ||
Net Assets - Class C Shares | $ | 2,297,001 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 318,084 | |||||
Net Asset Value Per Share(3) |
| $ | 7.22 |
| ||
Net Assets - Class D Shares | $ | 2,554,472 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 351,207 | |||||
Net Asset Value Per Share |
| $ | 7.27 |
| ||
Net Assets - Class I Shares | $ | 20,476,166 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,804,749 | |||||
Net Asset Value Per Share |
| $ | 7.30 |
| ||
Net Assets - Class N Shares | $ | 51,169,498 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 7,025,710 | |||||
Net Asset Value Per Share |
| $ | 7.28 |
| ||
Net Assets - Class S Shares | $ | 1,400,518 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 190,193 | |||||
Net Asset Value Per Share |
| $ | 7.36 |
| ||
Net Assets - Class T Shares | $ | 21,908,106 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 3,012,731 | |||||
Net Asset Value Per Share |
| $ | 7.27 |
|
(1) Includes $288,394 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Includes cost of $19,193. (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, 2016(1)
|
|
|
|
|
|
Investment Income: | |||||
| Dividends | $ | 1,067,243 | ||
Affiliated securities lending income, net | 5,535 | ||||
Dividends from affiliates | 4,451 | ||||
Other income | 49 | ||||
Foreign tax withheld | (100,599) | ||||
Total Investment Income |
| 976,679 |
| ||
Expenses: | |||||
Advisory fees | 295,577 | ||||
12b-1Distribution and shareholder servicing fees: | |||||
Class A Shares | 9,084 | ||||
Class C Shares | 10,151 | ||||
Class S Shares | 1,300 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 1,532 | ||||
Class S Shares | 1,300 | ||||
Class T Shares | 27,167 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 3,281 | ||||
Class C Shares | 973 | ||||
Class I Shares | 11,612 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 351 | ||||
Class C Shares | 120 | ||||
Class D Shares | 364 | ||||
Class I Shares | 1,504 | ||||
Class N Shares | 107 | ||||
Class S Shares | 10 | ||||
Class T Shares | 154 | ||||
Registration fees | 30,935 | ||||
Professional fees | 19,861 | ||||
Custodian fees | 15,027 | ||||
Shareholder reports expense | 5,927 | ||||
Fund administration fees | 5,104 | ||||
Non-interested Trustees fees and expenses | 1,924 | ||||
Other expenses | 6,728 | ||||
Total Expenses |
| 450,093 |
| ||
Less: Excess Expense Reimbursement |
| (37) |
| ||
Net Expenses |
| 450,056 |
| ||
Net Investment Income/(Loss) |
| 526,623 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments and foreign currency transactions | (2,318,494) | ||||
Total Net Realized Gain/(Loss) on Investments |
| (2,318,494) |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments, foreign currency translations and non-interested Trustees deferred compensation | (5,176,047) | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| (5,176,047) |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (6,967,918) |
| ||
(1) Period from October 28, 2016 (inception date) through December 31, 2016 for Class N Shares. |
See Notes to Financial Statements. | |
18 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Statements of Changes in Net Assets
|
|
| Period
ended |
| Year
ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 526,623 | $ | 1,322,942 | ||||
Net realized gain/(loss) on investments | (2,318,494) | (2,355,579) | ||||||
Change in unrealized net appreciation/depreciation | (5,176,047) | 1,706,722 | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| (6,967,918) |
|
| 674,085 | |||
Dividends and Distributions to Shareholders: | ||||||||
Dividends from Net Investment Income | ||||||||
Class A Shares | (171,788) | (16,604) | ||||||
Class C Shares | (29,038) | (6,407) | ||||||
Class D Shares | (46,272) | (15,202) | ||||||
Class I Shares | (384,770) | (894,967) | ||||||
Class N Shares | (989,140) | N/A | ||||||
Class S Shares | (25,915) | (736) | ||||||
Class T Shares | (408,738) | (19,967) | ||||||
Net Decrease from Dividends and Distributions to Shareholders |
| (2,055,661) |
|
| (953,883) | |||
Capital Share Transactions: | ||||||||
Class A Shares | 6,045,667 | (959,620) | ||||||
Class C Shares | 913,645 | 1,077,678 | ||||||
Class D Shares | 465,617 | 1,770,325 | ||||||
Class I Shares | (41,822,407) | 2,526,681 | ||||||
Class N Shares | 52,327,656 | N/A | ||||||
Class S Shares | 483,362 | 937,439 | ||||||
Class T Shares | 9,414,595 | 13,031,280 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| 27,828,135 |
|
| 18,383,783 | |||
Net Increase/(Decrease) in Net Assets |
| 18,804,556 |
|
| 18,103,985 | |||
Net Assets: | ||||||||
Beginning of period | 91,128,012 | 73,024,027 | ||||||
| End of period | $ | 109,932,568 |
| $ | 91,128,012 | ||
Undistributed Net Investment Income/(Loss) | $ | (1,029,833) |
| $ | 499,205 |
(1) Period from October 28, 2016 (inception date) through December 31, 2016 for Class N Shares. |
See Notes to Financial Statements. | |
Janus Investment Fund | 19 |
INTECH International Managed Volatility Fund
Financial Highlights
Class A Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 | |||||
Net Asset Value, Beginning of Period |
| $7.96 |
|
| $8.03 |
|
| $9.66 |
|
| $8.07 |
|
| $6.79 |
|
| $8.10 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.03(1) | 0.11(1) | 0.09(1) | 0.25(1) | 0.22 | 0.12 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.51) | (0.13) | (0.56) | 1.57 | 1.21 | (1.36) | |||||||||||||||
Total from Investment Operations |
| (0.48) |
|
| (0.02) |
|
| (0.47) |
|
| 1.82 |
|
| 1.43 |
|
| (1.24) |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.13) | (0.05) | (0.15) | (0.23) | (0.15) | (0.07) | |||||||||||||||
Distributions (from capital gains) | | | (1.01) | (2) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.13) |
|
| (0.05) |
|
| (1.16) |
|
| (0.23) |
|
| (0.15) |
|
| (0.07) |
| |||
Net Asset Value, End of Period | $7.35 | $7.96 | $8.03 | $9.66 | $8.07 | $6.79 | |||||||||||||||
Total Return* |
| (5.98)% |
|
| (0.22)% |
|
| (4.19)% |
|
| 22.74% |
|
| 21.27% |
|
| (15.33)% |
| |||
Net Assets, End of Period (in thousands) | $10,127 | $4,821 | $5,829 | $5,342 | $473 | $445 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $7,099 | $3,145 | $5,392 | $2,240 | $317 | $452 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.08% | 1.24% | 1.35% | 1.21% | 1.22% | 1.42% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.08% | 1.24% | 1.34% | 1.20% | 1.22% | 1.26% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.79% | 1.45% | 1.09% | 2.69% | 1.26% | 1.72% | |||||||||||||||
Portfolio Turnover Rate | 43% | 74% | 191% | 160% | 143% | 140% | |||||||||||||||
1 |
Class C Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
| ||||
Net Asset Value, Beginning of Period |
| $7.81 |
|
| $7.94 |
|
| $9.58 |
|
| $8.14 |
|
| $6.78 |
|
| $8.11 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | (1)(2) | 0.08(1) | 0.03(1) | 0.19(1) | 2.46 | 0.17 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.50) | (0.15) | (0.56) | 1.57 | (0.93) | (1.43) | |||||||||||||||
Total from Investment Operations |
| (0.50) |
|
| (0.07) |
|
| (0.53) |
|
| 1.76 |
|
| 1.53 |
|
| (1.26) |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.09) | (0.06) | (0.10) | (0.32) | (0.17) | (0.07) | |||||||||||||||
Distributions (from capital gains) | | | (1.01) | (2) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.09) |
|
| (0.06) |
|
| (1.11) |
|
| (0.32) |
|
| (0.17) |
|
| (0.07) |
| |||
Net Asset Value, End of Period | $7.22 | $7.81 | $7.94 | $9.58 | $8.14 | $6.78 | |||||||||||||||
Total Return* |
| (6.37)% |
|
| (0.86)% |
|
| (4.95)% |
|
| 21.91% |
|
| 22.79% |
|
| (15.55)% |
| |||
Net Assets, End of Period (in thousands) | $2,297 | $1,581 | $510 | $526 | $113 | $433 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $1,989 | $924 | $480 | $179 | $251 | $574 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.84% | 1.94% | 2.02% | 1.93% | 1.32% | 1.71% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.84% | 1.94% | 2.01% | 1.93% | 1.18% | 1.47% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.02% | 1.05% | 0.40% | 2.13% | 1.20% | 1.33% | |||||||||||||||
Portfolio Turnover Rate | 43% | 74% | 191% | 160% | 143% | 140% | |||||||||||||||
* 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. | |
20 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Financial Highlights
Class D Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and the year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $7.87 |
|
| $8.00 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.04 | 0.15 | 0.03 | |||||||||
Net realized and unrealized gain/(loss) | (0.51) | (0.16) | (2.03) | |||||||||
Total from Investment Operations |
| (0.47) |
|
| (0.01) |
|
| (2.00) |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.13) | (0.12) | | |||||||||
Distributions (from capital gains) | | | | |||||||||
Total Dividends and Distributions |
| (0.13) |
|
| (0.12) |
|
| |
| |||
Net Asset Value, End of Period | $7.27 | $7.87 | $8.00 | |||||||||
Total Return* |
| (5.95)% |
|
| (0.12)% |
|
| (20.00)% |
| |||
Net Assets, End of Period (in thousands) | $2,554 | $2,282 | $504 | |||||||||
Average Net Assets for the Period (in thousands) | $2,505 | $1,314 | $315 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.93% | 1.17% | 2.26% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.93% | 1.10% | 1.26% | |||||||||
Ratio of Net Investment Income/(Loss) | 0.92% | 1.97% | 1.80% | |||||||||
Portfolio Turnover Rate | 43% | 74% | 191% | |||||||||
Class I Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
| ||||
Net Asset Value, Beginning of Period |
| $7.89 |
|
| $8.00 |
|
| $9.63 |
|
| $8.03 |
|
| $6.77 |
|
| $8.06 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.04(2) | 0.14(2) | 0.13(2) | 0.21(2) | 0.18 | 0.12 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.51) | (0.13) | (0.57) | 1.63 | 1.28 | (1.35) | |||||||||||||||
Total from Investment Operations |
| (0.47) |
|
| 0.01 |
|
| (0.44) |
|
| 1.84 |
|
| 1.46 |
|
| (1.23) |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.12) | (0.12) | (0.18) | (0.24) | (0.20) | (0.06) | |||||||||||||||
Distributions (from capital gains) | | | (1.01) | (3) | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | N/A | (4) | |||||||||||||||
Total Dividends and Distributions |
| (0.12) |
|
| (0.12) |
|
| (1.19) |
|
| (0.24) |
|
| (0.20) |
|
| (0.06) |
| |||
Net Asset Value, End of Period | $7.30 | $7.89 | $8.00 | $9.63 | $8.03 | $6.77 | |||||||||||||||
Total Return* |
| (5.95)% |
|
| 0.14% |
|
| (3.90)% |
|
| 23.21% |
|
| 21.78% |
|
| (15.18)% |
| |||
Net Assets, End of Period (in thousands) | $20,476 | $66,948 | $65,227 | $69,062 | $59,981 | $35,608 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $59,672 | $61,549 | $64,504 | $66,596 | $42,583 | $29,910 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.74% | 0.87% | 0.93% | 0.81% | 0.92% | 1.13% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.74% | 0.87% | 0.93% | 0.81% | 0.92% | 1.00% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.98% | 1.78% | 1.48% | 2.27% | 1.86% | 2.05% | |||||||||||||||
Portfolio Turnover Rate | 43% | 74% | 191% | 160% | 143% | 140% | |||||||||||||||
* 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
Financial Highlights
Class N Shares | ||||||
For a share outstanding during the period ended December 31 (unaudited) |
| 2016(1) |
| |||
Net Asset Value, Beginning of Period |
| $7.79 |
| |||
Income/(Loss) from Investment Operations: | ||||||
Net investment income/(loss)(2) | 0.02 | |||||
Net realized and unrealized gain/(loss) | (0.38) | |||||
Total from Investment Operations |
| (0.36) |
| |||
Less Dividends and Distributions: | ||||||
Dividends (from net investment income) | (0.15) | |||||
Distributions (from capital gains) | | |||||
Total Dividends and Distributions |
| (0.15) |
| |||
Net Asset Value, End of Period | $7.28 | |||||
Total Return* |
| (5.95)% |
| |||
Net Assets, End of Period (in thousands) | $51,169 | |||||
Average Net Assets for the Period (in thousands) | $33,435 | |||||
Ratios to Average Net Assets**: |
|
|
| |||
Ratio of Gross Expenses | 0.83% | |||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.83% | |||||
Ratio of Net Investment Income/(Loss) | 1.53% | |||||
Portfolio Turnover Rate | 43% | |||||
Class S Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
| ||||
Net Asset Value, Beginning of Period |
| $7.98 |
|
| $8.09 |
|
| $9.74 |
|
| $8.09 |
|
| $6.79 |
|
| $8.12 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.02(2) | 0.15(2) | 0.09(2) | 0.15(2) | 2.47 | 0.10 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.51) | (0.17) | (0.57) | 1.69 | (1.02) | (1.36) | |||||||||||||||
Total from Investment Operations |
| (0.49) |
|
| (0.02) |
|
| (0.48) |
|
| 1.84 |
|
| 1.45 |
|
| (1.26) |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.13) | (0.09) | (0.16) | (0.19) | (0.15) | (0.07) | |||||||||||||||
Distributions (from capital gains) | | | (1.01) | (3) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.13) |
|
| (0.09) |
|
| (1.17) |
|
| (0.19) |
|
| (0.15) |
|
| (0.07) |
| |||
Net Asset Value, End of Period | $7.36 | $7.98 | $8.09 | $9.74 | $8.09 | $6.79 | |||||||||||||||
Total Return* |
| (6.10)% |
|
| (0.18)% |
|
| (4.29)% |
|
| 22.92% |
|
| 21.48% |
|
| (15.54)% |
| |||
Net Assets, End of Period (in thousands) | $1,401 | $1,009 | $67 | $67 | $118 | $421 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $1,016 | $135 | $64 | $86 | $254 | $432 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.23% | 1.40% | 1.43% | 1.33% | 1.48% | 1.66% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.22% | 1.26% | 1.43% | 1.13% | 1.29% | 1.44% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.61% | 1.98% | 1.01% | 1.69% | 1.09% | 1.52% | |||||||||||||||
Portfolio Turnover Rate | 43% | 74% | 191% | 160% | 143% | 140% | |||||||||||||||
* 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, 2016 (inception date) through December 31, 2016. (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. | |
22 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Financial Highlights
Class T Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 | |||||
Net Asset Value, Beginning of Period |
| $7.87 |
|
| $7.99 |
|
| $9.60 |
|
| $8.01 |
|
| $6.77 |
|
| $8.09 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.03(1) | 0.22(1) | 0.09(1) | 0.32(1) | 0.08 | 0.06 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.50) | (0.23) | (0.55) | 1.49 | 1.35 | (1.31) | |||||||||||||||
Total from Investment Operations |
| (0.47) |
|
| (0.01) |
|
| (0.46) |
|
| 1.81 |
|
| 1.43 |
|
| (1.25) |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.13) | (0.11) | (0.14) | (0.22) | (0.19) | (0.07) | |||||||||||||||
Distributions (from capital gains) | | | (1.01) | (2) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.13) |
|
| (0.11) |
|
| (1.15) |
|
| (0.22) |
|
| (0.19) |
|
| (0.07) |
| |||
Net Asset Value, End of Period | $7.27 | $7.87 | $7.99 | $9.60 | $8.01 | $6.77 | |||||||||||||||
Total Return* |
| (5.92)% |
|
| (0.14)% |
|
| (4.08)% |
|
| 22.78% |
|
| 21.30% |
|
| (15.47)% |
| |||
Net Assets, End of Period (in thousands) | $21,908 | $14,487 | $887 | $2,504 | $202 | $59 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $21,317 | $4,865 | $1,474 | $1,121 | $70 | $40 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.97% | 1.16% | 1.16% | 1.12% | 1.27% | 1.41% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.97% | 1.16% | 1.16% | 1.12% | 1.26% | 1.25% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.89% | 2.90% | 1.10% | 3.44% | 1.24% | 1.80% | |||||||||||||||
Portfolio Turnover Rate | 43% | 74% | 191% | 160% | 143% | 140% | |||||||||||||||
* 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. | |
Janus Investment Fund | 23 |
INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 seeks long-term growth of capital. 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 D Shares are closed to certain investors.
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
24 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
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, 2016 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 | 25 |
INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
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. 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 the 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 Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (REITs) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Funds tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that
26 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 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. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU (known as Brexit). One or more other countries may also 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
Janus Investment Fund | 27 |
INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
(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.
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.
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 in accordance with the Agency Securities Lending and Repurchase Agreement. For financial reporting purposes, the Fund does not offset financial instruments payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the 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.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross Amounts | |||||||||
of Recognized | Offsetting Asset | Collateral | |||||||
Counterparty | Assets | or Liability(a) | Pledged(b) | Net Amount | |||||
Deutsche Bank AG | $ | 288,394 | $ | | $ | (288,394) | $ | | |
(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. |
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-
28 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 (if applicable). Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as Affiliated securities lending income, net on the Statement of Operations. As of December 31, 2016, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $288,394 for equity securities. Gross amounts of recognized liabilities for securities lending (collateral received) as of December 31, 2016 is $303,630, resulting in the net amount due to the counterparty of $15,236.
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% of its average daily net assets.
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 Investment Fund | 29 |
INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 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% of the Funds average daily net assets. Janus Capital has agreed to continue the waiver until at least November 1, 2017. 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,
30 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
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). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund also pays for some or all of 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. Some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $329,069 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2016. 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, 2016 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, 2016 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 $181,750 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2016.
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, 2016 can be found in a table located in the Notes to Schedule of Investments and Other Information.
Janus Investment Fund | 31 |
INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended December 31, 2016, Janus Distributors retained upfront sales charges of $1,116.
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, 2016.
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, 2016, redeeming shareholders of Class C Shares paid CDSCs of $58.
As of December 31, 2016, 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 | 44 | |||
Class S Shares | - | - | |||
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.
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2016, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
Capital Loss Carryover Schedule | ||||
For the year ended June 30, 2016 | ||||
No Expiration | ||||
Short-Term | Long-Term | Accumulated | ||
$(4,474,653) | $ - | $ (4,474,653) |
32 | DECEMBER 31, 2016 |
INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2016 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/depreciation on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships, and investments in passive foreign investment companies.
Federal Tax Cost | Unrealized | Unrealized | Net
Tax Appreciation/ |
$ 111,680,482 | $ 4,201,973 | $ (4,766,004) | $ (564,031) |
5. Capital Share Transactions
Period ended December 31, 2016(1) | Year ended June 30, 2016 | |||||
Shares | Amount | Shares | Amount | |||
Class A Shares: | ||||||
Shares sold | 973,029 | $ 7,617,538 | 519,588 | $ 4,041,147 | ||
Reinvested dividends and distributions | 23,307 | 171,072 | 2,134 | 16,432 | ||
Shares repurchased | (223,960) | (1,742,943) | (641,804) | (5,017,199) | ||
Net Increase/(Decrease) | 772,376 | $ 6,045,667 |
| (120,082) | $ (959,620) | |
Class C Shares: | ||||||
Shares sold | 199,722 | $ 1,563,622 | 146,639 | $ 1,142,252 | ||
Reinvested dividends and distributions | 3,664 | 26,417 | 523 | 3,966 | ||
Shares repurchased | (87,726) | (676,394) | (8,942) | (68,540) | ||
Net Increase/(Decrease) | 115,660 | $ 913,645 |
| 138,220 | $ 1,077,678 | |
Class D Shares: | ||||||
Shares sold | 137,674 | $ 1,072,372 | 336,191 | $ 2,598,577 | ||
Reinvested dividends and distributions | 6,316 | 45,853 | 1,990 | 15,144 | ||
Shares repurchased | (82,715) | (652,608) | (111,321) | (843,396) | ||
Net Increase/(Decrease) | 61,275 | $ 465,617 |
| 226,860 | $ 1,770,325 | |
Class I Shares: | ||||||
Shares sold | 2,241,893 | $ 17,534,085 | 1,444,458 | $11,126,723 | ||
Reinvested dividends and distributions | 49,835 | 363,296 | 116,406 | 887,017 | ||
Shares repurchased | (7,971,126) | (59,719,788) | (1,228,122) | (9,487,059) | ||
Net Increase/(Decrease) | (5,679,398) | $(41,822,407) |
| 332,742 | $ 2,526,681 | |
Class N Shares: | ||||||
Shares sold | 7,046,345 | $ 52,503,613 | - | $ - | ||
Reinvested dividends and distributions | 136,058 | 989,140 | - | - | ||
Shares repurchased | (156,693) | (1,165,097) | - | - | ||
Net Increase/(Decrease) | 7,025,710 | $ 52,327,656 |
| N/A | N/A | |
Class S Shares: | ||||||
Shares sold | 100,771 | $ 769,689 | 118,590 | $ 940,433 | ||
Reinvested dividends and distributions | 3,526 | 25,915 | 95 | 736 | ||
Shares repurchased | (40,612) | (312,242) | (471) | (3,730) | ||
Net Increase/(Decrease) | 63,685 | $ 483,362 |
| 118,214 | $ 937,439 | |
Class T Shares: | ||||||
Shares sold | 1,635,765 | $ 12,973,768 | 1,981,283 | $14,984,653 | ||
Reinvested dividends and distributions | 56,136 | 407,550 | 2,609 | 19,854 | ||
Shares repurchased | (519,094) | (3,966,723) | (254,969) | (1,973,227) | ||
Net Increase/(Decrease) | 1,172,807 | $ 9,414,595 |
| 1,728,923 | $13,031,280 | |
(1) | Period from October 28, 2016 (inception date) through December 31, 2016 for Class N Shares. |
Janus Investment Fund | 33 |
INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
6. Purchases and Sales of Investment Securities
For the period ended December 31, 2016, 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 |
$72,349,031 | $ 44,216,236 | $ - | $ - |
7. Merger Related Matters
On October 3, 2016, Janus Capital Group Inc. (JCGI), the direct parent of Janus Capital Management LLC, the investment adviser to the Fund (Janus Capital), and Henderson Group plc (Henderson) announced that they had entered into an Agreement and Plan of Merger (Merger Agreement) relating to the strategic combination of Henderson and JCGI (the Transaction). Pursuant to the Merger Agreement, a newly formed, direct wholly-owned subsidiary of Henderson will merge with and into JCGI, with JCGI as the surviving corporation and a direct wholly-owned subsidiary of Henderson. The Transaction is currently expected to close in the second quarter of 2017, subject to requisite shareholder and regulatory approvals.
The consummation of the Transaction may be deemed to be an assignment (as defined in the Investment Company Act of 1940, as amended) of the current advisory agreement between Janus Capital and the Fund. In addition, the consummation of the Transaction may be deemed to be an assignment of the current sub-advisory agreements between Janus Capital and each of INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins), the subadvisers to certain funds. As a result, the consummation of the Transaction may cause such investment advisory agreements and investment sub-advisory agreements to terminate automatically in accordance with their respective terms.
On December 8, 2016, the Board of Trustees of the Fund (the Board of Trustees) approved, subject to approval of shareholders, a new investment advisory agreement between the Fund and Janus Capital in order to permit Janus Capital to continue to provide advisory services to the Fund following the closing of the Transaction. The new investment advisory agreement will have substantially similar terms as the corresponding current investment advisory agreement.
On December 8, 2016, the Board of Trustees approved, subject to approval of shareholders, a new investment sub-advisory agreement between Janus Capital and INTECH in order to permit INTECH to continue to provide sub-advisory services with respect to the Fund following the closing of the Transaction. The new investment sub-advisory agreement will have substantially similar terms as the corresponding current investment sub-advisory agreement.
On December 8, 2016, the Board of Trustees also approved interim investment advisory agreements between the Fund and Janus Capital and interim sub-advisory agreements between Janus Capital and the Funds subadviser, as applicable. In the event shareholders of the Fund do not approve the new investment advisory agreement (and, if applicable, the new investment sub-advisory agreement) prior to the closing of the Transaction, an interim investment advisory agreement (and, if applicable, an interim investment sub-advisory agreement) will take effect with respect to the Fund upon the closing of the Transaction. Such interim agreements will continue in effect for a term ending on the earlier of 150 days from the closing of the Transaction, or when shareholders of the Fund approve the new investment advisory agreement and new investment sub-advisory agreement, if applicable. Compensation earned by Janus Capital and the Funds subadviser, if applicable, under their respective interim investment advisory agreement or interim investment sub-advisory agreement will be held in an interest-bearing escrow account and will be paid to Janus Capital or the subadviser, as applicable, if shareholders approve the corresponding new investment advisory agreement or new investment sub-advisory agreement prior to the end of the interim period. Except for the term and escrow provisions described above, the terms of each interim investment advisory agreement and interim investment subadvisory agreement are substantially similar to those of the corresponding current investment advisory agreement or current investment sub-advisory agreement.
In addition, the Funds name will change to reflect Janus Henderson as part of the Funds name.
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INTECH International Managed Volatility Fund
Notes to Financial Statements (unaudited)
Shareholders of record of the Fund as of December 29, 2016, will receive a proxy statement, notice of special meeting of shareholders, and proxy card, containing detailed information regarding shareholder proposals with respect to these and certain other matters. The shareholder meeting is expected to be held on or about April 6, 2017.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2016 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.
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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 and Sub-Advisory Agreements with Janus and Janus Affiliates during the Period
On September 15, 2016, Janus Capital Group Inc. (Janus) advised the Trustees of Janus Investment Fund (the Trust), each of whom serves as an independent Trustee (the Board or the Trustees), of its intent to seek a strategic combination of its advisory business with Henderson Group plc (Henderson). The Board met with the Chief Executive Officer of Janus, who outlined the proposed combination and the potential benefits to Janus Capital Management LLC (Janus Capital) and each Fund of the Trust (each, a Fund and collectively, the Funds). Subsequent to the September 15, 2016 meeting, the Trustees identified a list of basic principles, which they believed should serve as the foundation for their review of the organizational, operational and strategic issues involved with any potential change in control of Janus Capital, the investment adviser to the Funds. These basic principles were communicated to Janus Capital on September 27, 2016, and were intended to be shared with Henderson. On October 3, 2016, Janus announced that it had entered into a definitive Agreement and Plan of Merger with Henderson pursuant to which Janus and Henderson agreed to effect an all-stock merger of equals strategic combination of their respective businesses, with Janus Capital surviving the merger as a direct wholly-owned subsidiary of Henderson (the Transaction). The Board was advised that, subject to certain conditions, the Transaction is currently expected to close during the second quarter of 2017.
As part of its due diligence, the Board developed an initial list of questions related to the proposed transaction, which was provided to Janus Capital on October 6, 2016. At a special Board meeting held on October 19, 2016, the Board considered Janus Capitals response to the initial information request and met with the management of Janus to discuss the impact of the Transaction on the nature, extent and quality of services Janus Capital is expected to provide to the Janus Funds following the Transaction, addressing, among other matters, the personnel expected to provide such services, and the resources available to do so. After its October 19, 2016 meeting, the Board developed a supplemental request for additional information, which was provided to Janus Capital on October 26, 2016. At another special Board meeting held on November 7-8, 2016, the Board considered Janus Capitals response to the supplemental information request and again met with the management of Janus and Henderson to discuss the impact of the Transaction on the nature, extent and quality of services Janus Capital is expected to provide to the Janus Funds following the Transaction, and also met with various officers of the Funds and of Janus Capital, including various Fund portfolio managers. After its November 7-8, 2016 meeting, the Board developed a second supplemental request for additional information, which was provided to Janus Capital on November 21, 2016. On December 7-8, 2016, the Board met to consider Janus Capitals response to the second supplemental information request and to also consider the proposed new investment advisory agreements between the Trust, on behalf of each Fund, and Janus Capital (each, a New Advisory Agreement and collectively, the New Advisory Agreements) and the new sub-advisory agreements between Janus Capital and each of the Funds that utilize INTECH Investment Management LLC (INTECH), Perkins Investment Management LLC (Perkins), or Janus Singapore Pte. Limited (Janus Singapore, and together with INTECH and Perkins, the Sub-Advisers and each, a Sub-Adviser) as sub-advisers (each, a New Sub-Advisory Agreement and collectively, the New Sub-Advisory Agreements) to take effect immediately after the Transaction or shareholder approval, whichever is later. During each of these meetings, the Board sought additional and clarifying information as it deemed necessary or appropriate. In addition, the Board engaged its independent fee consultant to help evaluate certain of the proposals that the Board was being asked to consider. Throughout the process, the Board had the assistance of its independent legal counsel, who advised them on, among other things, its duties and obligations.
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INTECH International Managed Volatility Fund
Additional Information (unaudited)
In connection with the Boards review, Janus Capital provided, and the Board obtained, substantial information regarding the following matters: the management, financial position and business of Henderson; the history of Hendersons business and operations; the investment performance of the investment companies advised by Henderson; the proposed structure, operations and investment processes of the combined investment management organization after the Transaction and the strategy for operating and growing the business following the Transaction; the future plans of Janus and Henderson with respect to the Funds and any proposed changes to the operations or structure of the Funds; and the future plans of Janus and Henderson with respect to the provision of services to the Funds, and the entities providing such services, including those affiliated with Janus. The Board also received information regarding the terms of the Transaction, anticipated management of the combined organization, the resources that each of Janus and Henderson bring to the combined organization and the process being followed by Janus and Henderson to integrate their organizations. The Board also received information regarding the impact of the Transaction on each of INTECH, Perkins and Janus Singapore.
In connection with the Boards approval of New Advisory Agreements and New Sub-Advisory Agreements at its December 8, 2016 meeting, the Board also continued its on-going annual process to determine whether to continue the existing investment advisory agreements between Janus Capital and the Trust on behalf of each Fund (each, a Current Advisory Agreement and collectively, the Current Advisory Agreements) and the existing sub-advisory agreements between Janus Capital and each of the Funds that utilize INTECH, Perkins, or Janus Singapore as sub-advisers (each, a Current Sub-Advisory Agreement and collectively, the Current Sub-Advisory Agreements). In this regard, the Board received and reviewed information provided by Janus and the respective Sub-Advisers in response to requests of the Board and its independent legal counsel. The Board also received and reviewed information and analysis provided by, and in response to requests of, its independent fee consultant. The Board noted that as part of this annual process, the Board had considered and was in the process of considering, numerous factors, including the nature and quality of services provided by Janus Capital and each Sub-Adviser, as applicable; investment performance, on an absolute basis and relative to appropriate peer groups and one or a combination of market indices; investment management fees, expense ratios and asset sizes of the Funds and peer groups; investment management fees charged to comparable investment companies, separate accounts and non-fund clients; Janus Capitals profitability from managing the Funds; fall-out benefits to Janus Capital from its relationship to the Funds, including revenues derived from services provided to the Funds by affiliates of Janus Capital; and the potential benefits to Janus Capital, the Funds of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms.
In determining whether to approve the New Advisory Agreement for each Fund and the New Sub-Advisory Agreement for Funds managed by INTECH, Perkins or Janus Singapore in connection with the Transaction, and whether to recommend approval to Fund shareholders, the Board received information and made inquiries into all matters as it deemed appropriate. The Board reviewed and analyzed various factors it deemed relevant, including the following factors, among others, none of which by itself was considered dispositive:
· The terms of the New Advisory Agreements are substantially similar to the corresponding Current Advisory Agreements, and the contractual fee rate will not change. In this regard, see the discussion of the Boards considerations with respect to its most recent approval of the Current Advisory Agreements prior to December 8, 2016, as disclosed in each Funds most recent prior annual or semi-annual shareholder report, as applicable.
· The terms of the New Sub-Advisory Agreements are substantially similar to the corresponding Current Sub-Advisory Agreements, and the contractual fee rate will not change. In this regard, see the discussion of the Boards considerations with respect to its most recent approval of the Current Sub-Advisory Agreements prior to December 8, 2016, as disclosed in each Funds most recent prior annual or semi-annual shareholder report, as applicable.
· Janus Capitals plans for the operation of the Funds, including its plans for the continued provision of all services currently provided to the Funds by Janus Capital and its affiliates, including, among others, investment advisory services, portfolio trading services, and Fund administrative and accounting services, and the personnel and resources proposed to support the provision of such services.
· The estimated profitability to Janus Capital from managing the Funds after the Transaction, including potential economies of scale and fall-out benefits to Janus Capital from its relationship to the Funds, including revenues derived from services provided to the Funds by affiliates of Janus Capital, and the potential benefits to Janus
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INTECH International Managed Volatility Fund
Additional Information (unaudited)
Capital, and the Funds of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms.
In connection with its deliberations, the Board received assurances from Janus, on behalf of itself and its affiliates (collectively, Janus) including the following:
· Janus has provided to the Board such information as it believes is reasonably necessary to evaluate the New Advisory Agreements and New Sub-Advisory Agreements.
· Janus is committed to the continuance, without interruption, of services to the Funds of at least the type and quality currently provided by Janus Capital and its affiliates, or superior thereto.
· The Transaction is not expected to affect negatively the nature, extent or quality of the investment advisory services provided by Janus Capital to the Funds following the Transaction, and the investment advisory services are expected to be at least comparable to the services being provided under the Current Advisory Agreements and Current Sub-Advisory Agreements. In this regard, the Board noted specific representations that Janus does not intend for the nature, extent or quality of investment advisory and other services to be provided to the Funds following the Transaction to change, and the extent of such services were expected to increase based on the combined resources of the combined investment management organization after the Transaction, and should the nature, extent or quality of such services decline, Janus would commit the resources needed to return such services to pre-Transaction levels.
· The Funds current operations were expected to remain largely unchanged, except for certain fund reorganizations which will be separately considered by the Board, and such other changes as were or will be presented to the Board.
· Janus does not intend to make changes to the portfolio managers providing services to the Funds, other than proposed changes in the management of certain Funds as discussed with the Board, including those related to proposals to merge certain Funds with Funds managed by Henderson Global Investors (North America) Inc., an indirect, wholly-owned subsidiary of Henderson, and subject to such changes as may arise at any time as a result of the ongoing process of portfolio manager evaluation.
· After the Transaction, the extent of distribution and marketing services provided to the Janus Funds were expected to increase based on the combined resources of Janus and Henderson. In this regard, Janus Capital advised the Board that after the Transaction, the extent of distribution and marketing services provided to the Janus Funds are expected to increase based on the combined resources of Janus and Henderson. This is due primarily to the anticipated increase of sales related resources and expanded global presence of the combined Janus Henderson organization, which is expected to enhance visibility and brand recognition of the Janus Henderson Funds.
· The intent of Janus Capital to take the necessary and appropriate steps to retain and attract its key investment advisory personnel.
· The intent of Janus to take the necessary and appropriate steps to retain and attract its key compliance, financial, fund accounting and administrative personnel supporting the management and oversight of the Funds.
· Janus is not aware of any express or implied term, condition, arrangement or understanding that would impose in its best judgement an unfair burden on any Fund as a result of the Transaction, as defined in Section 15(f) of the 1940 Act, and that Janus will take no action that would have the effect of imposing such an unfair burden on any Fund in connection with the Transaction.
Janus assured the Board that it intended to comply with Section 15(f) of the Investment Company Act of 1940, as amended (the 1940 Act). Section 15(f) provides a non-exclusive safe harbor for an investment adviser to an investment company or any of its affiliated persons to receive any amount or benefit in connection with a change in control of the investment adviser so long as two conditions are met. First, for a period of three years after the transaction, at least 75% of the board members of the investment company must not be interested persons of such investment adviser (as defined under the 1940 Act). The composition of the Board is in compliance with this provision of Section 15(f). In addition, after careful review and consideration, the Board determined that it would be in the best interests of the Funds to add to the Board an individual who currently acts as a non-interested board member of the
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INTECH International Managed Volatility Fund
Additional Information (unaudited)
Henderson Trust. The Board believes that this change in the Board composition will provide perspective and insight relating to experience working with the Henderson organization. The Boards Nominating and Governance Committee considered a number of candidates and recommended that the Board nominate one proposed new trustee from those candidates who currently act as non-interested board members of the Henderson Trust. The Board approved that trustee nominee to serve on the Board, subject to election by the shareholders of the Funds and contingent on the closing of the Transaction. If the new trustee is elected and serves on the Board, the Board composition would continue to satisfy the provisions of Section 15(f).
To meet the second condition of Section 15(f), an unfair burden must not be imposed upon the investment company as a result of such transaction or any express or implied terms, conditions or understandings applicable thereto. The term unfair burden is defined in Section 15(f) to include any arrangement during the two-year period after the transaction, whereby the investment adviser, or any interested person of such adviser, receives or is entitled to receive any compensation, directly or indirectly, from the investment company or its shareholders (other than fees for bona fide investment advisory or other services) or from any person in connection with the purchase or sale of securities or other property to, from or on behalf of the investment company (other than bona fide ordinary compensation as principal underwriter for such investment company).
Janus represented that it does not believe that an unfair burden will be placed on the Funds as a result of the Transaction. In furtherance thereof, Janus has undertaken to pay the costs of preparing and distributing proxy materials to, and of holding the meetings of, the Funds shareholders (the Meetings), as well as other fees and expenses in connection with the Transaction, including the reasonable fees and expenses of legal counsel and consultants to the Funds and the Trustees. In addition, Janus has agreed, for a period of two years following the closing of the Transaction, (i) not to request any increases to advisory fees for the Funds, other than those proposed to and approved by the Board prior to the close of the Transaction, and (ii) to continue to use the current process by which expense caps are set annually for the Funds.
As a result of its review and consideration of the New Investment Advisory Agreements and New Sub-Advisory Agreements in connection with the Transaction, at a meeting on December 8, 2016, the Board voted unanimously to approve a New Investment Advisory Agreement for each Fund and a New Sub-Advisory Agreement for each Fund managed by INTECH, Perkins or Janus Singapore, and to recommend such agreements to the Funds shareholders for their approval.
Approval of Interim Advisory and Sub-Advisory Agreements with Janus and Janus Affiliates during the Period
In the event shareholders of a Fund do not approve such Funds New Advisory Agreement and/or New Sub-Advisory Agreement at the Meetings prior to the closing of the Transaction, Janus Capital proposed that an interim investment advisory agreement between Janus Capital and such Fund (each, an Interim Advisory Agreement and collectively, the Interim Advisory Agreements) and an interim sub-advisory agreement between Janus Capital and the applicable Sub-Adviser (each, an Interim Sub-Advisory Agreement and collectively, the Interim Sub-Advisory Agreements) take effect upon the closing of the Transaction. At the December 8, 2016 meeting, the Board, all of whom are Independent Trustees, unanimously approved an Interim Advisory Agreement for each Fund and an Interim Sub-Advisory Agreement for each applicable Fund in order to assure continuity of investment advisory services to the Funds and sub-advisory services to the sub-advised Funds after the Transaction. The terms of each Interim Advisory Agreement are substantially identical to those of the applicable Current Advisory Agreement and New Advisory Agreement, except for the term and escrow provisions described below. Similarly, the terms of each Interim Sub-Advisory Agreement are substantially identical to those of the Current Sub-Advisory Agreements and New Sub-Advisory Agreements, except for the term and escrow provisions described below. The Interim Advisory Agreement and Interim Sub-Advisory Agreement will continue in effect for a term ending on the earlier of 150 days from the closing of the Transaction (the 150-day period) or when shareholders of the Fund approve the New Advisory Agreement and/or New Sub-Advisory Agreement. Pursuant to Rule 15a-4 under the 1940 Act, compensation earned by Janus Capital under an Interim Advisory Agreement and compensation earned by a Sub-Adviser under an Interim Sub-Advisory Agreement will be held in an interest-bearing escrow account. If shareholders of a Fund approve the New Advisory Agreement prior to the end of the 150-day period, the amount held in the escrow account under the Interim Advisory Agreement will be paid to Janus Capital. If shareholders of a Fund approve the New Advisory Agreement and New Sub-Advisory Agreement prior to the end of the 150-day period, the amount held in the escrow account under the Interim Sub-Advisory Agreement will be paid to the Sub-Adviser. If shareholders of a Fund do not approve the New Advisory Agreement prior to the end of the 150-day period, the Board will take such action as it
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INTECH International Managed Volatility Fund
Additional Information (unaudited)
deems to be in the best interests of the Fund, and Janus Capital will be paid the lesser of its costs incurred in performing its services under the Interim Advisory Agreement or the total amount in the escrow account, plus interest earned. If shareholders of a Fund do not approve the New Advisory Agreement and/or New Sub-Advisory Agreement prior to the end of the 150-day period, the Board will take such action as it deems to be in the best interests of the Fund, and the Sub-Adviser will be paid the lesser of its costs incurred in performing its services under the Interim Sub-Advisory Agreement or the total amount in the escrow account, plus interest earned.
Approval of Sub-Advisory Agreements with Henderson Investment Management Limited during the Period
Janus Capital met with the Trustees on November 7-8, 2016, and December 7-8, 2016, to discuss the approval of a new sub-advisory agreement between Janus Capital and Henderson Investment Management Limited (HIML) (each, a HIML Sub-Advisory Agreement and collectively, the HIML Sub-Advisory Agreements) on behalf of each of Janus Asia Equity Fund, Janus Emerging Markets Fund, and Janus Global Real Estate Fund (each, an HIML Fund and together, the HIML Funds) to take effect immediately after the closing of the Transaction or shareholder approval, whichever is later. At the meetings, the Trustees also discussed the HIML Sub-Advisory Agreements with their independent counsel in executive session. During the course of these meetings, the Trustees requested and considered such information as they deemed relevant to their deliberations. In addition, at prior meetings and during the course of these meetings the Board also undertook a comprehensive process to evaluate the impact of the Transaction on the nature, quality and extent of services expected to be provided by Janus Capital and HIML to each HIML Fund, including after the completion of the Transaction. For a fuller discussion of the Boards consideration of the approval of a new investment advisory agreement for the HIML Funds in connection with the Transaction, see Approval of Advisory and Sub-Advisory Agreements with Janus and its Affiliates During the Period above.
At a meeting of the Board of Trustees held on December 8, 2016, the Trustees considered the HIML Sub-Advisory Agreements. In determining whether to approve the HIML Sub-Advisory Agreements, and whether to recommend approval to the shareholders of each HIML Fund, the Board received information and made inquiries into all matters as it deemed appropriate. The Board reviewed and analyzed various factors it deemed relevant, including the following factors, among others, none of which by itself was considered dispositive:
· the terms of each HIML Sub-Advisory Agreement;
· the nature, quality and extent of services expected to be provided under the HIML Sub-Advisory Agreements, including the reputation, qualifications and background of HIML and its operational and compliance infrastructures;
· the investment approach, the experience and skills of senior management and investment personnel of HIML, including the portfolio managers who would be responsible for managing all or part of the portfolio of each HIML Fund, noting the resources made available to such personnel;
· the ability of HIML to attract and retain high-quality personnel and the organizational depth of HIML;
· the sub-advisory fee rate under each HIML Sub-Advisory Agreement, as well as the overall management fee structure of each HIML Fund, noting that the sub-advisory fee rate is consistent with the approach utilized in the Janus Funds complex for other sub-advisory relationships, taking into account the allocation of managed assets between Janus Capital and HIML for the Global Real Estate Fund;
· under each HIML Sub-Advisory Agreement, Janus Capital would be responsible for paying HIML out of its fees;
· the fall out benefits to HIML and its affiliates from its relationship with each HIML Fund, including the potential benefits to HIML and its affiliates and each HIML Fund of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms;
· the potential for economies of scale with respect to the overall fee structure of each HIML Fund and whether either Fund will benefit from any economies of scale; and
· the costs of seeking approval of the HIML Sub-Advisory Agreements will not be borne by the HIML Funds.
As a result of its review and consideration of each HIML Sub-Advisory Agreement and related matters, on December 8, 2016, the Board voted unanimously to approve each HIML Sub-Advisory Agreement and to recommend such agreement to each HIML Funds shareholders for their approval.
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INTECH International Managed Volatility Fund
Additional Information (unaudited)
Renewal of Investment Advisory and Sub-Advisory Agreements for INTECH U.S. Core Fund
As noted above, at its December 8, 2016 meeting, the Board continued its on-going annual process to determine whether to continue the Current Advisory Agreements and the Current Sub-Advisory Agreements. In this regard, the Board received and reviewed information provided by Janus and the respective Sub-Advisers in response to requests of the Board and its independent legal counsel. The Board also received and reviewed information and analysis provided by, and in response to requests of, its independent fee consultant. The Board noted that the Current Advisory Agreement between the Trust, on behalf of INTECH U.S. Core Fund, and Janus Capital and the Current Sub-Advisory Agreement between Janus Capital and INTECH, on behalf of the Fund, would expire on January 1, 2017, if not renewed. The Board noted that the date of termination for the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds was February 1, 2017, if not renewed. Accordingly, the Board voted unanimously to renew the Current Advisory Agreement and the Current Sub-Advisory Agreement for INTECH U.S. Core Fund through January 31, 2017 in order to (i) align the termination date of such Agreements with the termination date of the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds and (ii) allow for a more complete consideration of such Agreements, as well as the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds.
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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, 2016. 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, swaptions, 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.
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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. Also included are ratios of expenses and net investment income to average net assets.
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INTECH International Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
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, 2016 |
INTECH International 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-0217-7547 | 125-24-93014 02-17 |
SEMIANNUAL REPORT December 31, 2016 | |||
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)
FUND SNAPSHOT INTECHs active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC | ||||
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2016, INTECH U.S. Core Funds Class T Shares returned 4.56%. This compares to the 7.82% 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 recorded a strong return of 7.82% for the six-month period ended December 31, 2016. INTECH U.S. Core Fund underperformed the S&P 500 Index over the period and generated a return of 4.65%.
An overall increase in market diversity over the period reflected a change in the distribution of capital, in which smaller cap stocks outperformed larger 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 positively impacted by the overall increase in market diversity, adverse sector positioning and stock selection more than offset the positive contribution from the smaller size positioning of the Fund during the period.
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 was negatively impacted by an average underweight allocation to the financials sector, which became the strongest performing sector during the period after lagging in the first half of the year, as well as an average underweight allocation to the information technology sector, during the period. An average underweight allocation to some strong performing mega cap bank stocks was among the largest detractors during the period.
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, 2016
5 Largest Equity Holdings - (% of Net Assets) | |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 3.1% |
Lockheed Martin Corp | |
Aerospace & Defense | 2.1% |
Constellation Brands Inc | |
Beverages | 1.9% |
Spectra Energy Corp | |
Oil, Gas & Consumable Fuels | 1.8% |
Williams Cos Inc | |
Oil, Gas & Consumable Fuels | 1.7% |
10.6% |
Asset Allocation - (% of Net Assets) | |||||
Common Stocks | 99.6% | ||||
Investment Companies | 1.0% | ||||
Other | (0.6)% | ||||
100.0% |
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2016 | As of June 30, 2016 |
2 | DECEMBER 31, 2016 |
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, 2016 |
|
| per the October 28, 2016 prospectuses | |||||||
|
| Fiscal
| One
| Five
| Ten | Since |
|
| Total
Annual Fund | |
Class A Shares at NAV |
| 4.43% | 8.31% | 13.97% | 6.76% | 9.79% |
|
| 0.94% | |
Class A Shares at MOP |
| -1.55% | 2.06% | 12.63% | 6.13% | 9.33% |
|
|
| |
Class C Shares at NAV | 4.19% | 7.76% | 13.13% | 5.98% | 8.99% |
|
| 1.73% | ||
Class C Shares at CDSC |
| 3.19% | 6.76% | 13.13% | 5.98% | 8.99% |
|
|
| |
Class D Shares(1) |
| 4.60% | 8.61% | 14.15% | 6.99% | 10.06% |
|
| 0.79% | |
Class I Shares |
| 4.65% | 8.72% | 14.28% | 6.94% | 10.02% |
|
| 0.68% | |
Class N Shares |
| 4.73% | 8.74% | 14.07% | 6.94% | 10.02% |
|
| 0.57% | |
Class S Shares |
| 4.42% | 8.27% | 13.79% | 6.60% | 9.61% |
|
| 1.12% | |
Class T Shares |
| 4.56% | 8.52% | 14.07% | 6.94% | 10.02% |
|
| 0.87% | |
S&P 500 Index |
| 7.82% | 11.96% | 14.66% | 6.95% | 9.56% |
|
|
| |
Morningstar Quartile - Class T Shares |
| - | 1st | 2nd | 3rd | 1st |
|
|
| |
Morningstar Ranking - based on total returns for Large Growth Funds |
| - | 164/1,497 | 383/1,371 | 618/1,170 | 223/1,024 |
|
|
|
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.
Janus Investment Fund | 3 |
INTECH U.S. Core Fund (unaudited)(closed to certain new investors)
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.
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.
See Financial Highlights for actual expense ratios during the reporting period.
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.
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.
© 2016 Morningstar, Inc. All Rights Reserved.
Tracking Error is a divergence between the price behavior of a position or portfolio and the price behavior of a benchmark.
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.
4 | DECEMBER 31, 2016 |
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 | $1,044.30 | $4.48 |
| $1,000.00 | $1,020.82 | $4.43 | 0.87% | ||
Class C Shares | $1,000.00 | $1,041.90 | $7.36 |
| $1,000.00 | $1,018.00 | $7.27 | 1.43% | ||
Class D Shares | $1,000.00 | $1,046.00 | $3.40 |
| $1,000.00 | $1,021.88 | $3.36 | 0.66% | ||
Class I Shares | $1,000.00 | $1,046.50 | $2.79 |
| $1,000.00 | $1,022.48 | $2.75 | 0.54% | ||
Class N Shares | $1,000.00 | $1,047.30 | $2.58 |
| $1,000.00 | $1,022.68 | $2.55 | 0.50% | ||
Class S Shares | $1,000.00 | $1,044.20 | $5.15 |
| $1,000.00 | $1,020.16 | $5.09 | 1.00% | ||
Class T Shares | $1,000.00 | $1,045.60 | $3.82 |
| $1,000.00 | $1,021.48 | $3.77 | 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 184/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Funds prospectuses for more information regarding waivers and/or reimbursements. |
Janus Investment Fund | 5 |
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks 99.6% | |||||||
Aerospace & Defense 5.6% | |||||||
General Dynamics Corp | 6,300 | $1,087,758 | |||||
L-3 Communications Holdings Inc | 39,400 | 5,993,134 | |||||
Lockheed Martin Corp | 50,300 | 12,571,982 | |||||
Northrop Grumman Corp | 19,800 | 4,605,084 | |||||
Raytheon Co | 49,100 | 6,972,200 | |||||
TransDigm Group Inc | 9,600 | 2,390,016 | |||||
33,620,174 | |||||||
Air Freight & Logistics 0.2% | |||||||
CH Robinson Worldwide Inc | 6,400 | 468,864 | |||||
Expeditors International of Washington Inc | 10,300 | 545,488 | |||||
1,014,352 | |||||||
Banks 0.1% | |||||||
Fifth Third Bancorp | 31,400 | 846,858 | |||||
Beverages 2.2% | |||||||
Constellation Brands Inc | 72,500 | 11,114,975 | |||||
Dr Pepper Snapple Group Inc | 24,700 | 2,239,549 | |||||
13,354,524 | |||||||
Building Products 0% | |||||||
Johnson Controls International plc | 1,099 | 45,268 | |||||
Capital Markets 1.9% | |||||||
CME Group Inc | 30,800 | 3,552,780 | |||||
E*TRADE Financial Corp* | 21,400 | 741,510 | |||||
Intercontinental Exchange Inc | 2,500 | 141,050 | |||||
Moody's Corp | 11,700 | 1,102,959 | |||||
Morgan Stanley | 26,200 | 1,106,950 | |||||
Nasdaq Inc | 31,600 | 2,120,992 | |||||
S&P Global Inc | 22,400 | 2,408,896 | |||||
State Street Corp | 4,900 | 380,828 | |||||
11,555,965 | |||||||
Chemicals 1.4% | |||||||
Albemarle Corp | 38,200 | 3,288,256 | |||||
FMC Corp | 44,200 | 2,499,952 | |||||
International Flavors & Fragrances Inc | 19,700 | 2,321,251 | |||||
8,109,459 | |||||||
Commercial Services & Supplies 1.9% | |||||||
Cintas Corp | 24,600 | 2,842,776 | |||||
Republic Services Inc | 83,300 | 4,752,265 | |||||
Waste Management Inc | 49,900 | 3,538,409 | |||||
11,133,450 | |||||||
Communications Equipment 0.8% | |||||||
Harris Corp | 43,800 | 4,488,186 | |||||
Construction & Engineering 0.5% | |||||||
Jacobs Engineering Group Inc* | 45,000 | 2,565,000 | |||||
Quanta Services Inc* | 12,700 | 442,595 | |||||
3,007,595 | |||||||
Construction Materials 1.1% | |||||||
Martin Marietta Materials Inc | 21,200 | 4,696,436 | |||||
Vulcan Materials Co | 17,200 | 2,152,580 | |||||
6,849,016 | |||||||
Containers & Packaging 1.9% | |||||||
Avery Dennison Corp | 38,600 | 2,710,492 | |||||
International Paper Co | 76,100 | 4,037,866 | |||||
WestRock Co | 94,200 | 4,782,534 | |||||
11,530,892 | |||||||
Distributors 0.3% | |||||||
Genuine Parts Co | 19,200 | 1,834,368 | |||||
LKQ Corp* | 4,200 | 128,730 | |||||
1,963,098 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
6 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Diversified Consumer Services 0.1% | |||||||
H&R Block Inc# | 21,200 | $487,388 | |||||
Diversified Financial Services 0.2% | |||||||
Leucadia National Corp | 49,600 | 1,153,200 | |||||
Electric Utilities 3.2% | |||||||
Alliant Energy Corp | 19,900 | 754,011 | |||||
Edison International | 19,300 | 1,389,407 | |||||
Entergy Corp | 27,500 | 2,020,425 | |||||
Exelon Corp | 62,500 | 2,218,125 | |||||
NextEra Energy Inc | 11,900 | 1,421,574 | |||||
PG&E Corp | 17,000 | 1,033,090 | |||||
Pinnacle West Capital Corp | 47,300 | 3,690,819 | |||||
PPL Corp | 65,500 | 2,230,275 | |||||
Southern Co | 55,900 | 2,749,721 | |||||
Xcel Energy Inc | 43,700 | 1,778,590 | |||||
19,286,037 | |||||||
Electrical Equipment 0.4% | |||||||
Rockwell Automation Inc | 16,800 | 2,257,920 | |||||
Electronic Equipment, Instruments & Components 1.5% | |||||||
Amphenol Corp | 83,300 | 5,597,760 | |||||
Corning Inc | 127,200 | 3,087,144 | |||||
8,684,904 | |||||||
Energy Equipment & Services 1.0% | |||||||
FMC Technologies Inc* | 10,300 | 365,959 | |||||
Halliburton Co | 100,500 | 5,436,045 | |||||
5,802,004 | |||||||
Equity Real Estate Investment Trusts (REITs) 6.0% | |||||||
American Tower Corp | 17,500 | 1,849,400 | |||||
Apartment Investment & Management Co | 4,000 | 181,800 | |||||
Digital Realty Trust Inc# | 31,600 | 3,105,016 | |||||
Equinix Inc | 22,403 | 8,007,056 | |||||
Federal Realty Investment Trust | 14,800 | 2,103,228 | |||||
HCP Inc | 28,700 | 852,964 | |||||
Iron Mountain Inc | 106,400 | 3,455,872 | |||||
Kimco Realty Corp | 129,300 | 3,253,188 | |||||
Prologis Inc | 153,300 | 8,092,707 | |||||
Realty Income Corp | 13,200 | 758,736 | |||||
SL Green Realty Corp | 6,400 | 688,320 | |||||
Ventas Inc | 52,500 | 3,282,300 | |||||
Vornado Realty Trust | 1,200 | 125,244 | |||||
35,755,831 | |||||||
Food & Staples Retailing 0.4% | |||||||
Sysco Corp | 44,500 | 2,463,965 | |||||
Food Products 2.2% | |||||||
Archer-Daniels-Midland Co | 36,000 | 1,643,400 | |||||
Conagra Brands Inc | 68,500 | 2,709,175 | |||||
Kellogg Co | 24,800 | 1,828,008 | |||||
Kraft Heinz Co | 10,800 | 943,056 | |||||
Tyson Foods Inc | 99,400 | 6,130,992 | |||||
13,254,631 | |||||||
Health Care Equipment & Supplies 5.2% | |||||||
Baxter International Inc | 41,900 | 1,857,846 | |||||
Becton Dickinson and Co | 29,100 | 4,817,505 | |||||
Boston Scientific Corp* | 71,900 | 1,555,197 | |||||
Cooper Cos Inc | 20,000 | 3,498,600 | |||||
CR Bard Inc | 8,000 | 1,797,280 | |||||
Edwards Lifesciences Corp* | 30,200 | 2,829,740 | |||||
Hologic Inc* | 48,600 | 1,949,832 | |||||
Intuitive Surgical Inc* | 4,500 | 2,853,765 | |||||
Medtronic PLC | 1,300 | 92,599 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Health Care Equipment & Supplies (continued) | |||||||
St Jude Medical Inc | 27,500 | $2,205,225 | |||||
Stryker Corp | 18,800 | 2,252,428 | |||||
Varian Medical Systems Inc* | 36,900 | 3,312,882 | |||||
Zimmer Biomet Holdings Inc | 18,800 | 1,940,160 | |||||
30,963,059 | |||||||
Health Care Providers & Services 3.5% | |||||||
Aetna Inc | 9,400 | 1,165,694 | |||||
Anthem Inc | 3,400 | 488,818 | |||||
Cardinal Health Inc | 7,800 | 561,366 | |||||
Centene Corp* | 19,500 | 1,101,945 | |||||
Henry Schein Inc* | 20,300 | 3,079,713 | |||||
Laboratory Corp of America Holdings* | 10,300 | 1,322,314 | |||||
Quest Diagnostics Inc | 61,700 | 5,670,230 | |||||
UnitedHealth Group Inc | 46,300 | 7,409,852 | |||||
20,799,932 | |||||||
Hotels, Restaurants & Leisure 0.7% | |||||||
McDonald's Corp | 2,400 | 292,128 | |||||
Wynn Resorts Ltd# | 28,600 | 2,474,186 | |||||
Yum! Brands Inc | 26,300 | 1,665,579 | |||||
4,431,893 | |||||||
Household Durables 0.4% | |||||||
Garmin Ltd | 4,800 | 232,752 | |||||
Leggett & Platt Inc | 29,100 | 1,422,408 | |||||
Newell Brands Inc | 19,400 | 866,210 | |||||
2,521,370 | |||||||
Household Products 0.3% | |||||||
Church & Dwight Co Inc | 5,600 | 247,464 | |||||
Kimberly-Clark Corp | 11,100 | 1,266,732 | |||||
1,514,196 | |||||||
Independent Power and Renewable Electricity Producers 0.4% | |||||||
AES Corp/VA | 204,900 | 2,380,938 | |||||
Industrial Conglomerates 0.2% | |||||||
Honeywell International Inc | 1,200 | 139,020 | |||||
Roper Technologies Inc | 6,400 | 1,171,712 | |||||
1,310,732 | |||||||
Information Technology Services 2.3% | |||||||
Automatic Data Processing Inc | 25,800 | 2,651,724 | |||||
Fiserv Inc* | 47,300 | 5,027,044 | |||||
Mastercard Inc | 4,800 | 495,600 | |||||
Paychex Inc | 77,200 | 4,699,936 | |||||
Total System Services Inc | 19,100 | 936,473 | |||||
13,810,777 | |||||||
Insurance 5.0% | |||||||
Aflac Inc | 96,700 | 6,730,320 | |||||
Allstate Corp | 4,000 | 296,480 | |||||
Aon PLC | 7,900 | 881,087 | |||||
Arthur J Gallagher & Co | 68,900 | 3,580,044 | |||||
Assurant Inc | 14,200 | 1,318,612 | |||||
Chubb Ltd | 11,500 | 1,519,380 | |||||
Cincinnati Financial Corp | 72,400 | 5,484,300 | |||||
Loews Corp | 10,100 | 472,983 | |||||
Marsh & McLennan Cos Inc | 25,200 | 1,703,268 | |||||
Principal Financial Group Inc | 37,800 | 2,187,108 | |||||
Torchmark Corp | 41,400 | 3,053,664 | |||||
Travelers Cos Inc | 14,600 | 1,787,332 | |||||
Unum Group | 25,000 | 1,098,250 | |||||
30,112,828 | |||||||
Internet & Direct Marketing Retail 1.2% | |||||||
Amazon.com Inc* | 3,600 | 2,699,532 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Internet & Direct Marketing Retail (continued) | |||||||
Expedia Inc | 11,200 | $1,268,736 | |||||
Netflix Inc* | 6,200 | 767,560 | |||||
Priceline Group Inc* | 1,500 | 2,199,090 | |||||
6,934,918 | |||||||
Internet Software & Services 1.7% | |||||||
Akamai Technologies Inc* | 18,000 | 1,200,240 | |||||
eBay Inc* | 41,300 | 1,226,197 | |||||
Facebook Inc | 42,100 | 4,843,605 | |||||
Yahoo! Inc* | 80,000 | 3,093,600 | |||||
10,363,642 | |||||||
Leisure Products 0.1% | |||||||
Hasbro Inc | 500 | 38,895 | |||||
Mattel Inc | 16,700 | 460,085 | |||||
498,980 | |||||||
Life Sciences Tools & Services 2.0% | |||||||
Agilent Technologies Inc | 29,600 | 1,348,576 | |||||
Illumina Inc* | 29,300 | 3,751,572 | |||||
Mettler-Toledo International Inc* | 4,500 | 1,883,520 | |||||
Thermo Fisher Scientific Inc | 20,400 | 2,878,440 | |||||
Waters Corp* | 13,400 | 1,800,826 | |||||
11,662,934 | |||||||
Machinery 2.0% | |||||||
Caterpillar Inc | 6,400 | 593,536 | |||||
Cummins Inc | 8,300 | 1,134,361 | |||||
Illinois Tool Works Inc | 12,000 | 1,469,520 | |||||
Ingersoll-Rand PLC | 35,700 | 2,678,928 | |||||
Parker-Hannifin Corp | 12,600 | 1,764,000 | |||||
Stanley Black & Decker Inc | 22,300 | 2,557,587 | |||||
Xylem Inc/NY | 41,100 | 2,035,272 | |||||
12,233,204 | |||||||
Media 0.9% | |||||||
CBS Corp | 13,500 | 858,870 | |||||
Interpublic Group of Cos Inc | 168,900 | 3,953,949 | |||||
Omnicom Group Inc | 3,600 | 306,396 | |||||
5,119,215 | |||||||
Metals & Mining 1.5% | |||||||
Newmont Mining Corp | 259,100 | 8,827,537 | |||||
Multiline Retail 0.1% | |||||||
Nordstrom Inc# | 11,700 | 560,781 | |||||
Multi-Utilities 3.5% | |||||||
Ameren Corp | 35,400 | 1,857,084 | |||||
CenterPoint Energy Inc | 143,900 | 3,545,696 | |||||
CMS Energy Corp | 31,700 | 1,319,354 | |||||
Consolidated Edison Inc | 43,600 | 3,212,448 | |||||
DTE Energy Co | 10,900 | 1,073,759 | |||||
NiSource Inc | 104,700 | 2,318,058 | |||||
SCANA Corp | 63,800 | 4,675,264 | |||||
Sempra Energy | 7,100 | 714,544 | |||||
WEC Energy Group Inc | 37,700 | 2,211,105 | |||||
20,927,312 | |||||||
Oil, Gas & Consumable Fuels 10.0% | |||||||
Anadarko Petroleum Corp | 24,600 | 1,715,358 | |||||
Apache Corp | 98,500 | 6,251,795 | |||||
Cabot Oil & Gas Corp | 116,200 | 2,714,432 | |||||
Chesapeake Energy Corp* | 254,400 | 1,785,888 | |||||
Cimarex Energy Co | 20,800 | 2,826,720 | |||||
Concho Resources Inc* | 21,400 | 2,837,640 | |||||
Devon Energy Corp | 42,700 | 1,950,109 | |||||
EOG Resources Inc | 13,100 | 1,324,410 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Oil, Gas & Consumable Fuels (continued) | |||||||
EQT Corp | 46,900 | $3,067,260 | |||||
Kinder Morgan Inc/DE | 64,800 | 1,342,008 | |||||
Newfield Exploration Co* | 62,600 | 2,535,300 | |||||
ONEOK Inc | 71,200 | 4,087,592 | |||||
Phillips 66 | 8,700 | 751,767 | |||||
Pioneer Natural Resources Co | 18,400 | 3,313,288 | |||||
Range Resources Corp | 7,700 | 264,572 | |||||
Southwestern Energy Co* | 158,700 | 1,717,134 | |||||
Spectra Energy Corp | 262,900 | 10,802,561 | |||||
Williams Cos Inc | 331,700 | 10,329,138 | |||||
59,616,972 | |||||||
Pharmaceuticals 0.2% | |||||||
Zoetis Inc | 22,700 | 1,215,131 | |||||
Professional Services 1.5% | |||||||
Dun & Bradstreet Corp | 12,000 | 1,455,840 | |||||
Equifax Inc | 58,000 | 6,857,340 | |||||
Verisk Analytics Inc* | 7,500 | 608,775 | |||||
8,921,955 | |||||||
Road & Rail 0.6% | |||||||
CSX Corp | 42,200 | 1,516,246 | |||||
JB Hunt Transport Services Inc | 4,500 | 436,815 | |||||
Kansas City Southern | 17,900 | 1,518,815 | |||||
3,471,876 | |||||||
Semiconductor & Semiconductor Equipment 12.5% | |||||||
Applied Materials Inc | 293,000 | 9,455,110 | |||||
Broadcom Ltd | 49,249 | 8,705,746 | |||||
Intel Corp | 45,100 | 1,635,777 | |||||
KLA-Tencor Corp | 34,200 | 2,690,856 | |||||
Lam Research Corp | 60,700 | 6,417,811 | |||||
Linear Technology Corp | 5,300 | 330,455 | |||||
Microchip Technology Inc | 78,600 | 5,042,190 | |||||
Micron Technology Inc* | 413,600 | 9,066,112 | |||||
NVIDIA Corp | 170,800 | 18,231,192 | |||||
Qorvo Inc* | 31,600 | 1,666,268 | |||||
QUALCOMM Inc | 49,400 | 3,220,880 | |||||
Skyworks Solutions Inc | 18,600 | 1,388,676 | |||||
Texas Instruments Inc | 46,000 | 3,356,620 | |||||
Xilinx Inc | 54,100 | 3,266,017 | |||||
74,473,710 | |||||||
Software 4.2% | |||||||
Activision Blizzard Inc | 97,000 | 3,502,670 | |||||
Adobe Systems Inc* | 82,200 | 8,462,490 | |||||
Autodesk Inc* | 23,500 | 1,739,235 | |||||
Electronic Arts Inc* | 41,400 | 3,260,664 | |||||
Intuit Inc | 10,400 | 1,191,944 | |||||
Symantec Corp | 283,000 | 6,760,870 | |||||
24,917,873 | |||||||
Specialty Retail 2.2% | |||||||
Best Buy Co Inc | 42,000 | 1,792,140 | |||||
Gap Inc | 24,000 | 538,560 | |||||
Home Depot Inc | 20,700 | 2,775,456 | |||||
Lowe's Cos Inc | 29,100 | 2,069,592 | |||||
Ross Stores Inc | 44,400 | 2,912,640 | |||||
Ulta Salon Cosmetics & Fragrance Inc* | 10,400 | 2,651,376 | |||||
Urban Outfitters Inc* | 8,800 | 250,624 | |||||
12,990,388 | |||||||
Technology Hardware, Storage & Peripherals 2.2% | |||||||
Hewlett Packard Enterprise Co | 134,000 | 3,100,760 | |||||
HP Inc | 45,100 | 669,284 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Technology Hardware, Storage & Peripherals (continued) | |||||||
NetApp Inc | 113,000 | $3,985,510 | |||||
Seagate Technology PLC | 110,000 | 4,198,700 | |||||
Western Digital Corp | 21,000 | 1,426,950 | |||||
13,381,204 | |||||||
Textiles, Apparel & Luxury Goods 0.4% | |||||||
PVH Corp | 23,900 | 2,156,736 | |||||
Tobacco 1.0% | |||||||
Altria Group Inc | 85,600 | 5,788,272 | |||||
Reynolds American Inc | 956 | 53,574 | |||||
5,841,846 | |||||||
Trading Companies & Distributors 0.1% | |||||||
United Rentals Inc* | 8,300 | 876,314 | |||||
Water Utilities 0.8% | |||||||
American Water Works Co Inc | 68,700 | 4,971,132 | |||||
Total Common Stocks (cost $521,852,062) | 594,474,102 | ||||||
Investment Companies 1.0% | |||||||
Investments Purchased with Cash Collateral from Securities Lending 0.8% | |||||||
Janus Cash Collateral Fund LLC, 0.4311%ºº,£ | 4,969,584 | 4,969,584 | |||||
Money Markets 0.2% | |||||||
Janus Cash Liquidity Fund LLC, 0.4708%ºº,£ | 1,099,000 | 1,099,000 | |||||
Total Investment Companies (cost $6,068,584) | 6,068,584 | ||||||
Total Investments (total cost $527,920,646) 100.6% | 600,542,686 | ||||||
Liabilities, net of Cash, Receivables and Other Assets (0.6)% | (3,791,623) | ||||||
Net Assets 100% | $596,751,063 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 11 |
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 |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of December 31, 2016. |
# | Loaned security; a portion of the security is on loan at December 31, 2016. |
£ | 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, 2016. Unless otherwise indicated, all information in the table is for the period ended December 31, 2016. |
Share | Share | ||||||||||||||
Balance | Balance | Realized | Dividend | Value | |||||||||||
at 6/30/16 | Purchases | Sales | at 12/31/16 | Gain/(Loss) | Income | at 12/31/16 | |||||||||
Janus Cash Collateral Fund LLC | 13,993,920 | 94,114,820 | (103,139,156) | 4,969,584 | $ | $57,901(1) | $4,969,584 | ||||||||
Janus Cash Liquidity Fund LLC | 1,493,883 | 27,855,845 | (28,250,728) | 1,099,000 | | 3,511 | 1,099,000 | ||||||||
Total | $ | $61,412 | $6,068,584 | ||||||||||||
(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 Funds investments in securities and other financial instruments as of December 31, 2016. See Notes to Financial Statements for more information. | ||||||||||||
Valuation Inputs Summary | ||||||||||||
Level 2 - | Level 3 - | |||||||||||
Level 1 - | Other Significant | Significant | ||||||||||
Quotes Prices | Observable Inputs | Unobservable Inputs | ||||||||||
Assets | ||||||||||||
Investments in Securities | ||||||||||||
Common Stocks | $ | 594,474,102 | $ | - | $ | - | ||||||
Investment Companies | - | 6,068,584 | - | |||||||||
Total Assets | $ | 594,474,102 | $ | 6,068,584 | $ | - | ||||||
12 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2016
See footnotes at the end of the Statement. |
|
|
|
|
|
|
|
Assets: | ||||||
Investments, at cost | $ | 527,920,646 | ||||
Unaffiliated investments, at value(1) | 594,474,102 | |||||
Affiliated investments, at value | 6,068,584 | |||||
Cash | 22,959 | |||||
Non-interested Trustees' deferred compensation | 11,080 | |||||
Receivables: | ||||||
Investments sold | 1,276,794 | |||||
Dividends | 784,012 | |||||
Fund shares sold | 213,377 | |||||
Dividends from affiliates | 90 | |||||
Other assets | 7,521 | |||||
Total Assets |
|
| 602,858,519 |
| ||
Liabilities: | ||||||
Collateral for securities loaned (Note 2) | 4,969,584 | |||||
Payables: | | |||||
Fund shares repurchased | 725,575 | |||||
Advisory fees | 200,819 | |||||
Transfer agent fees and expenses | 92,783 | |||||
12b-1 Distribution and shareholder servicing fees | 26,258 | |||||
Professional fees | 24,212 | |||||
Non-interested Trustees' deferred compensation fees | 11,080 | |||||
Fund administration fees | 5,170 | |||||
Non-interested Trustees' fees and expenses | 4,764 | |||||
Dividends | 1,230 | |||||
Custodian fees | 985 | |||||
Accrued expenses and other payables | 44,996 | |||||
Total Liabilities |
|
| 6,107,456 |
| ||
Net Assets |
| $ | 596,751,063 |
|
See Notes to Financial Statements. | |
Janus Investment Fund | 13 |
INTECH U.S. Core Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2016
|
|
|
|
|
|
|
Net Assets Consist of: | ||||||
Capital (par value and paid-in surplus) | $ | 517,496,115 | ||||
Undistributed net investment income/(loss) | 928,579 | |||||
Undistributed net realized gain/(loss) from investments | 5,701,776 | |||||
Unrealized net appreciation/(depreciation) of investments and non-interested Trustees deferred compensation | 72,624,593 | |||||
Total Net Assets |
| $ | 596,751,063 |
| ||
Net Assets - Class A Shares | $ | 24,117,855 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,320,514 | |||||
Net Asset Value Per Share(2) |
| $ | 18.26 |
| ||
Maximum Offering Price Per Share(3) |
| $ | 19.37 |
| ||
Net Assets - Class C Shares | $ | 14,463,632 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 802,714 | |||||
Net Asset Value Per Share(2) |
| $ | 18.02 |
| ||
Net Assets - Class D Shares | $ | 286,965,958 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 15,693,161 | |||||
Net Asset Value Per Share |
| $ | 18.29 |
| ||
Net Assets - Class I Shares | $ | 106,718,248 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,832,253 | |||||
Net Asset Value Per Share |
| $ | 18.30 |
| ||
Net Assets - Class N Shares | $ | 16,064,510 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 879,040 | |||||
Net Asset Value Per Share |
| $ | 18.28 |
| ||
Net Assets - Class S Shares | $ | 31,772,091 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,747,159 | |||||
Net Asset Value Per Share |
| $ | 18.19 |
| ||
Net Assets - Class T Shares | $ | 116,648,769 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 6,379,005 | |||||
Net Asset Value Per Share |
| $ | 18.29 |
|
(1) Includes $4,864,722 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements. | |
14 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Statement of Operations (unaudited)
For the period ended December 31, 2016
|
|
|
|
|
|
Investment Income: | |||||
| Dividends | $ | 6,202,103 | ||
Affiliated securities lending income, net | 57,901 | ||||
Dividends from affiliates | 3,511 | ||||
Other income | 128 | ||||
Total Investment Income |
| 6,263,643 |
| ||
Expenses: | |||||
Advisory fees | 1,347,226 | ||||
12b-1Distribution and shareholder servicing fees: | |||||
Class A Shares | 31,231 | ||||
Class C Shares | 70,693 | ||||
Class S Shares | 42,144 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 175,389 | ||||
Class S Shares | 42,144 | ||||
Class T Shares | 151,193 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 14,118 | ||||
Class C Shares | 4,237 | ||||
Class I Shares | 20,498 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 1,215 | ||||
Class C Shares | 963 | ||||
Class D Shares | 32,141 | ||||
Class I Shares | 2,333 | ||||
Class N Shares | 264 | ||||
Class S Shares | 201 | ||||
Class T Shares | 730 | ||||
Registration fees | 56,226 | ||||
Shareholder reports expense | 52,267 | ||||
Fund administration fees | 29,079 | ||||
Professional fees | 27,308 | ||||
Non-interested Trustees fees and expenses | 9,930 | ||||
Custodian fees | 2,697 | ||||
Other expenses | 6,916 | ||||
Total Expenses |
| 2,121,143 |
| ||
Less: Excess Expense Reimbursement |
| (4,622) |
| ||
Net Expenses |
| 2,116,521 |
| ||
Net Investment Income/(Loss) |
| 4,147,122 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments | 18,415,686 | ||||
Total Net Realized Gain/(Loss) on Investments |
| 18,415,686 |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments and non-interested Trustees deferred compensation | 4,154,828 | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| 4,154,828 |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 26,717,636 |
| ||
See Notes to Financial Statements. | |
Janus Investment Fund | 15 |
INTECH U.S. Core Fund
Statements of Changes in Net Assets
|
|
| Period
ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 4,147,122 | $ | 5,624,981 | ||||
Net realized gain/(loss) on investments | 18,415,686 | 11,300,146 | ||||||
Change in unrealized net appreciation/depreciation | 4,154,828 | 9,444,816 | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| 26,717,636 |
|
| 26,369,943 | |||
Dividends and Distributions to Shareholders: | ||||||||
Dividends from Net Investment Income | ||||||||
Class A Shares | (312,490) | (474) | ||||||
Class C Shares | (84,588) | | ||||||
Class D Shares | (4,196,330) | (365,646) | ||||||
Class I Shares | (1,672,104) | (256,581) | ||||||
Class N Shares | (260,589) | (134) | ||||||
Class S Shares | (349,331) | | ||||||
Class T Shares | (1,613,326) | (65,149) | ||||||
| Total Dividends from Net Investment Income |
| (8,488,758) |
|
| (687,984) | ||
Distributions from Net Realized Gain from Investment Transactions | ||||||||
Class A Shares | (531,986) | (3,775,981) | ||||||
Class C Shares | (333,513) | (2,898,284) | ||||||
Class D Shares | (6,284,864) | (43,914,844) | ||||||
Class I Shares | (2,331,095) | (18,496,171) | ||||||
Class N Shares | (349,170) | (8,118) | ||||||
Class S Shares | (698,301) | (5,457,787) | ||||||
Class T Shares | (2,575,716) | (20,516,757) | ||||||
| Total Distributions from Net Realized Gain from Investment Transactions | (13,104,645) |
|
| (95,067,942) | |||
Net Decrease from Dividends and Distributions to Shareholders |
| (21,593,403) |
|
| (95,755,926) | |||
Capital Share Transactions: | ||||||||
Class A Shares | (1,270,355) | 31,455 | ||||||
Class C Shares | (2,908,414) | 60,971 | ||||||
Class D Shares | (2,805,779) | 17,395,221 | ||||||
Class I Shares | 2,287,354 | (37,148,146) | ||||||
Class N Shares | 400,805 | 15,194,163 | ||||||
Class S Shares | (4,342,443) | (6,178,864) | ||||||
Class T Shares | (5,808,503) | (18,703,820) | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| (14,447,335) |
|
| (29,349,020) | |||
Net Increase/(Decrease) in Net Assets |
| (9,323,102) |
|
| (98,735,003) | |||
Net Assets: | ||||||||
Beginning of period | 606,074,165 | 704,809,168 | ||||||
| End of period | $ | 596,751,063 |
| $ | 606,074,165 | ||
Undistributed Net Investment Income/(Loss) | $ | 928,579 |
| $ | 5,270,215 |
See Notes to Financial Statements. | |
16 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Financial Highlights
Class A Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 | |||||
Net Asset Value, Beginning of Period |
| $18.11 |
|
| $20.47 |
|
| $21.27 |
|
| $17.66 |
|
| $14.72 |
|
| $14.31 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.11(1) | 0.15(1) | 0.21(1) | 0.14(1) | 0.18 | 0.15 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.69 | 0.61 | 1.27 | 4.34 | 2.96 | 0.39 | |||||||||||||||
Total from Investment Operations |
| 0.80 |
|
| 0.76 |
|
| 1.48 |
|
| 4.48 |
|
| 3.14 |
|
| 0.54 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.24) | (2) | (0.26) | (0.11) | (0.20) | (0.13) | |||||||||||||||
Distributions (from capital gains) | (0.41) | (3.12) | (2.02) | (0.76) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.65) |
|
| (3.12) |
|
| (2.28) |
|
| (0.87) |
|
| (0.20) |
|
| (0.13) |
| |||
Net Asset Value, End of Period | $18.26 | $18.11 | $20.47 | $21.27 | $17.66 | $14.72 | |||||||||||||||
Total Return* |
| 4.43% |
|
| 4.43% |
|
| 7.03% |
|
| 25.84% |
|
| 21.48% |
|
| 3.83% |
| |||
Net Assets, End of Period (in thousands) | $24,118 | $25,178 | $27,845 | $22,550 | $16,242 | $13,486 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $24,517 | $24,289 | $24,335 | $18,644 | $13,430 | $13,834 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.87% | 0.94% | 0.89% | 0.97% | 0.98% | 0.99% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.87% | 0.94% | 0.89% | 0.97% | 0.98% | 0.99% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.19% | 0.78% | 0.97% | 0.70% | 1.05% | 1.03% | |||||||||||||||
Portfolio Turnover Rate | 55% | 106% | 130% | 59% | 67% | 73% | |||||||||||||||
1 |
Class C Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
| ||||
Net Asset Value, Beginning of Period |
| $17.79 |
|
| $20.29 |
|
| $21.14 |
|
| $17.59 |
|
| $14.68 |
|
| $14.26 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.06(1) | 0.03(1) | 0.05(1) | (0.01)(1) | 0.04 | 0.03 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.68 | 0.59 | 1.26 | 4.32 | 2.96 | 0.39 | |||||||||||||||
Total from Investment Operations |
| 0.74 |
|
| 0.62 |
|
| 1.31 |
|
| 4.31 |
|
| 3.00 |
|
| 0.42 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.10) | | (0.14) | | (0.09) | | |||||||||||||||
Distributions (from capital gains) | (0.41) | (3.12) | (2.02) | (0.76) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.51) |
|
| (3.12) |
|
| (2.16) |
|
| (0.76) |
|
| (0.09) |
|
| |
| |||
Net Asset Value, End of Period | $18.02 | $17.79 | $20.29 | $21.14 | $17.59 | $14.68 | |||||||||||||||
Total Return* |
| 4.19% |
|
| 3.72% |
|
| 6.21% |
|
| 24.87% |
|
| 20.51% |
|
| 2.95% |
| |||
Net Assets, End of Period (in thousands) | $14,464 | $17,156 | $19,376 | $14,013 | $9,154 | $6,450 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $16,221 | $18,086 | $17,511 | $11,106 | $7,536 | $6,402 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.43% | 1.57% | 1.66% | 1.75% | 1.77% | 1.83% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.43% | 1.57% | 1.66% | 1.75% | 1.77% | 1.83% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.63% | 0.17% | 0.22% | (0.07)% | 0.25% | 0.20% | |||||||||||||||
Portfolio Turnover Rate | 55% | 106% | 130% | 59% | 67% | 73% | |||||||||||||||
* 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. | |
Janus Investment Fund | 17 |
INTECH U.S. Core Fund
Financial Highlights
Class D Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 | |||||
Net Asset Value, Beginning of Period |
| $18.14 |
|
| $20.50 |
|
| $21.29 |
|
| $17.67 |
|
| $14.74 |
|
| $14.32 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.13(1) | 0.18(1) | 0.24(1) | 0.17(1) | 0.19 | 0.17 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.71 | 0.61 | 1.29 | 4.35 | 2.97 | 0.39 | |||||||||||||||
Total from Investment Operations |
| 0.84 |
|
| 0.79 |
|
| 1.53 |
|
| 4.52 |
|
| 3.16 |
|
| 0.56 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.28) | (0.03) | (0.30) | (0.14) | (0.23) | (0.14) | |||||||||||||||
Distributions (from capital gains) | (0.41) | (3.12) | (2.02) | (0.76) | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | N/A | (2) | |||||||||||||||
Total Dividends and Distributions |
| (0.69) |
|
| (3.15) |
|
| (2.32) |
|
| (0.90) |
|
| (0.23) |
|
| (0.14) |
| |||
Net Asset Value, End of Period | $18.29 | $18.14 | $20.50 | $21.29 | $17.67 | $14.74 | |||||||||||||||
Total Return* |
| 4.60% |
|
| 4.56% |
|
| 7.23% |
|
| 26.02% |
|
| 21.62% |
|
| 3.96% |
| |||
Net Assets, End of Period (in thousands) | $286,966 | $287,476 | $302,054 | $286,019 | $220,548 | $174,853 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $286,788 | $286,102 | $303,548 | $255,973 | $192,611 | $168,338 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.66% | 0.79% | 0.74% | 0.80% | 0.85% | 0.84% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.66% | 0.79% | 0.74% | 0.80% | 0.85% | 0.84% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.41% | 0.96% | 1.14% | 0.87% | 1.17% | 1.20% | |||||||||||||||
Portfolio Turnover Rate | 55% | 106% | 130% | 59% | 67% | 73% | |||||||||||||||
Class I Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
| ||||
Net Asset Value, Beginning of Period |
| $18.16 |
|
| $20.52 |
|
| $21.31 |
|
| $17.68 |
|
| $14.75 |
|
| $14.33 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.14(1) | 0.19(1) | 0.27(1) | 0.20(1) | 0.19 | 0.20 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.71 | 0.61 | 1.28 | 4.35 | 2.99 | 0.37 | |||||||||||||||
Total from Investment Operations |
| 0.85 |
|
| 0.80 |
|
| 1.55 |
|
| 4.55 |
|
| 3.18 |
|
| 0.57 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.30) | (0.04) | (0.32) | (0.16) | (0.25) | (0.15) | |||||||||||||||
Distributions (from capital gains) | (0.41) | (3.12) | (2.02) | (0.76) | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | N/A | (2) | |||||||||||||||
Total Dividends and Distributions |
| (0.71) |
|
| (3.16) |
|
| (2.34) |
|
| (0.92) |
|
| (0.25) |
|
| (0.15) |
| |||
Net Asset Value, End of Period | $18.30 | $18.16 | $20.52 | $21.31 | $17.68 | $14.75 | |||||||||||||||
Total Return* |
| 4.65% |
|
| 4.65% |
|
| 7.35% |
|
| 26.22% |
|
| 21.75% |
|
| 4.06% |
| |||
Net Assets, End of Period (in thousands) | $106,718 | $103,603 | $153,922 | $174,615 | $71,592 | $50,196 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $105,376 | $121,119 | $178,491 | $147,897 | $56,472 | $52,297 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.54% | 0.68% | 0.61% | 0.68% | 0.75% | 0.72% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.54% | 0.68% | 0.61% | 0.68% | 0.75% | 0.72% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.54% | 1.03% | 1.26% | 1.00% | 1.27% | 1.31% | |||||||||||||||
Portfolio Turnover Rate | 55% | 106% | 130% | 59% | 67% | 73% | |||||||||||||||
* 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. | |
18 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Financial Highlights
Class N Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and the year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $18.14 |
|
| $20.50 |
|
| $21.73 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.15 | 0.24 | 0.20 | |||||||||
Net realized and unrealized gain/(loss) | 0.71 | 0.57 | 0.93 | |||||||||
Total from Investment Operations |
| 0.86 |
|
| 0.81 |
|
| 1.13 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.31) | (0.05) | (0.34) | |||||||||
Distributions (from capital gains) | (0.41) | (3.12) | (2.02) | |||||||||
Total Dividends and Distributions |
| (0.72) |
|
| (3.17) |
|
| (2.36) |
| |||
Net Asset Value, End of Period | $18.28 | $18.14 | $20.50 | |||||||||
Total Return* |
| 4.73% |
|
| 4.70% |
|
| 5.26% |
| |||
Net Assets, End of Period (in thousands) | $16,065 | $15,565 | $53 | |||||||||
Average Net Assets for the Period (in thousands) | $15,976 | $3,138 | $53 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.50% | 0.57% | 0.59% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.50% | 0.57% | 0.59% | |||||||||
Ratio of Net Investment Income/(Loss) | 1.58% | 1.41% | 1.45% | |||||||||
Portfolio Turnover Rate | 55% | 106% | 130% | |||||||||
Class S Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
| ||||
Net Asset Value, Beginning of Period |
| $18.01 |
|
| $20.41 |
|
| $21.23 |
|
| $17.66 |
|
| $14.73 |
|
| $14.29 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.10(2) | 0.11(2) | 0.17(2) | 0.11(2) | 0.16 | 0.12 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.70 | 0.61 | 1.28 | 4.34 | 2.94 | 0.40 | |||||||||||||||
Total from Investment Operations |
| 0.80 |
|
| 0.72 |
|
| 1.45 |
|
| 4.45 |
|
| 3.10 |
|
| 0.52 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.21) | | (0.25) | (0.12) | (0.17) | (0.09) | |||||||||||||||
Distributions (from capital gains) | (0.41) | (3.12) | (2.02) | (0.76) | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | N/A | 0.01 | |||||||||||||||
Total Dividends and Distributions |
| (0.62) |
|
| (3.12) |
|
| (2.27) |
|
| (0.88) |
|
| (0.17) |
|
| (0.08) |
| |||
Net Asset Value, End of Period | $18.19 | $18.01 | $20.41 | $21.23 | $17.66 | $14.73 | |||||||||||||||
Total Return* |
| 4.42% |
|
| 4.23% |
|
| 6.86% |
|
| 25.61% |
|
| 21.20% |
|
| 3.75% |
| |||
Net Assets, End of Period (in thousands) | $31,772 | $35,763 | $45,678 | $30,533 | $5,996 | $4,645 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $33,093 | $36,252 | $38,156 | $24,601 | $4,857 | $4,525 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.00% | 1.12% | 1.07% | 1.14% | 1.17% | 1.16% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.00% | 1.12% | 1.07% | 1.14% | 1.17% | 1.16% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.04% | 0.60% | 0.81% | 0.54% | 0.86% | 0.88% | |||||||||||||||
Portfolio Turnover Rate | 55% | 106% | 130% | 59% | 67% | 73% | |||||||||||||||
* 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. | |
Janus Investment Fund | 19 |
INTECH U.S. Core Fund
Financial Highlights
Class T Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 | |||||
Net Asset Value, Beginning of Period |
| $18.13 |
|
| $20.49 |
|
| $21.29 |
|
| $17.67 |
|
| $14.74 |
|
| $14.31 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.12(1) | 0.16(1) | 0.22(1) | 0.16(1) | 0.18 | 0.15 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.71 | 0.61 | 1.28 | 4.34 | 2.97 | 0.40 | |||||||||||||||
Total from Investment Operations |
| 0.83 |
|
| 0.77 |
|
| 1.50 |
|
| 4.50 |
|
| 3.15 |
|
| 0.55 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.26) | (0.01) | (0.28) | (0.12) | (0.22) | (0.12) | |||||||||||||||
Distributions (from capital gains) | (0.41) | (3.12) | (2.02) | (0.76) | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | N/A | (2) | |||||||||||||||
Total Dividends and Distributions |
| (0.67) |
|
| (3.13) |
|
| (2.30) |
|
| (0.88) |
|
| (0.22) |
|
| (0.12) |
| |||
Net Asset Value, End of Period | $18.29 | $18.13 | $20.49 | $21.29 | $17.67 | $14.74 | |||||||||||||||
Total Return* |
| 4.56% |
|
| 4.47% |
|
| 7.10% |
|
| 25.94% |
|
| 21.58% |
|
| 3.93% |
| |||
Net Assets, End of Period (in thousands) | $116,649 | $121,334 | $155,881 | $147,294 | $109,408 | $83,640 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $118,690 | $132,444 | $157,958 | $129,992 | $92,764 | $75,220 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.75% | 0.87% | 0.82% | 0.89% | 0.92% | 0.91% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.74% | 0.86% | 0.82% | 0.89% | 0.92% | 0.91% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.32% | 0.87% | 1.05% | 0.79% | 1.11% | 1.14% | |||||||||||||||
Portfolio Turnover Rate | 55% | 106% | 130% | 59% | 67% | 73% | |||||||||||||||
* 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. | |
20 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Notes to Financial Statements (unaudited)
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 seeks long-term growth of capital. 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. The fund is closed to certain new investors.
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).
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)
Janus Investment Fund | 21 |
INTECH U.S. Core Fund
Notes to Financial Statements (unaudited)
markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (NYSE). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to odd-lot fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets 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, 2016 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.
22 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Notes to Financial Statements (unaudited)
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, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with 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 the 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 Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (REITs) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the 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-
Janus Investment Fund | 23 |
INTECH U.S. Core Fund
Notes to Financial Statements (unaudited)
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. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU (known as Brexit). One or more other countries may also 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
24 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Notes to Financial Statements (unaudited)
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.
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 in accordance with the Agency Securities Lending and Repurchase Agreement. For financial reporting purposes, the Fund does not offset financial instruments payables and receivables and related collateral on the Statement of Assets and Liabilities.Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the 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.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross Amounts | |||||||||
of Recognized | Offsetting Asset | Collateral | |||||||
Counterparty | Assets | or Liability(a) | Pledged(b) | Net Amount | |||||
Deutsche Bank AG | $ | 4,864,722 | $ | | $ | (4,864,722) | $ | | |
(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. |
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
Janus Investment Fund | 25 |
INTECH U.S. Core Fund
Notes to Financial Statements (unaudited)
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 (if applicable). Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as Affiliated securities lending income, net on the Statement of Operations. As of December 31, 2016, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $4,864,722. Gross amounts of recognized liabilities for securities lending (collateral received) as of December 31, 2016 is $4,969,584, resulting in the net amount due to the counterparty of $104,862.
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) 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, 2016, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.44%.
26 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Notes to Financial Statements (unaudited)
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 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 0.83% of the Funds average daily net assets. Janus Capital has agreed to continue the waiver until at least November 1, 2017. The previous expense limit until November 1, 2016 was 0.89%. 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 Investment Fund | 27 |
INTECH U.S. Core Fund
Notes to Financial Statements (unaudited)
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). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund also pays for some or all of 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. Some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $329,069 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2016. 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, 2016 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 and non-interested Trustees deferred compensation on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 2016 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 $181,750 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2016.
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
28 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Notes to Financial Statements (unaudited)
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, 2016 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, 2016, Janus Distributors retained upfront sales charges of $52.
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, 2016.
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, 2016, redeeming shareholders of Class C Shares paid CDSCs of $233.
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, 2016 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/ |
$ 527,874,220 | $81,180,228 | $ (8,511,762) | $ 72,668,466 |
Janus Investment Fund | 29 |
INTECH U.S. Core Fund
Notes to Financial Statements (unaudited)
5. Capital Share Transactions
Period ended December 31, 2016 | Year ended June 30, 2016 | |||||
Shares | Amount | Shares | Amount | |||
Class A Shares: | ||||||
Shares sold | 210,008 | $ 3,859,017 | 321,972 | $ 5,907,128 | ||
Reinvested dividends and distributions | 33,943 | 623,869 | 214,272 | 3,711,183 | ||
Shares repurchased | (314,068) | (5,753,241) | (505,793) | (9,586,856) | ||
Net Increase/(Decrease) | (70,117) | $(1,270,355) |
| 30,451 | $ 31,455 | |
Class C Shares: | ||||||
Shares sold | 16,839 | $ 305,020 | 91,461 | $ 1,598,233 | ||
Reinvested dividends and distributions | 16,409 | 297,488 | 115,828 | 1,978,350 | ||
Shares repurchased | (194,972) | (3,510,922) | (197,845) | (3,515,612) | ||
Net Increase/(Decrease) | (161,724) | $(2,908,414) |
| 9,444 | $ 60,971 | |
Class D Shares: | ||||||
Shares sold | 401,214 | $ 7,435,600 | 727,871 | $ 13,385,018 | ||
Reinvested dividends and distributions | 562,269 | 10,351,382 | 2,521,722 | 43,726,659 | ||
Shares repurchased | (1,119,523) | (20,592,761) | (2,135,254) | (39,716,456) | ||
Net Increase/(Decrease) | (156,040) | $(2,805,779) |
| 1,114,339 | $ 17,395,221 | |
Class I Shares: | ||||||
Shares sold | 369,779 | $ 6,821,372 | 615,963 | $ 11,464,100 | ||
Reinvested dividends and distributions | 214,279 | 3,947,020 | 1,059,725 | 18,386,233 | ||
Shares repurchased | (457,393) | (8,481,038) | (3,472,759) | (66,998,479) | ||
Net Increase/(Decrease) | 126,665 | $ 2,287,354 |
| (1,797,071) | $(37,148,146) | |
Class N Shares: | ||||||
Shares sold | 53,675 | $ 998,694 | 886,360 | $ 15,742,108 | ||
Reinvested dividends and distributions | 33,157 | 609,759 | 476 | 8,252 | ||
Shares repurchased | (65,623) | (1,207,648) | (31,603) | (556,197) | ||
Net Increase/(Decrease) | 21,209 | $ 400,805 |
| 855,233 | $ 15,194,163 | |
Class S Shares: | ||||||
Shares sold | 180,758 | $ 3,313,071 | 380,143 | $ 7,095,538 | ||
Reinvested dividends and distributions | 57,152 | 1,046,448 | 316,231 | 5,451,819 | ||
Shares repurchased | (476,861) | (8,701,962) | (948,287) | (18,726,221) | ||
Net Increase/(Decrease) | (238,951) | $(4,342,443) |
| (251,913) | $ (6,178,864) | |
Class T Shares: | ||||||
Shares sold | 273,068 | $ 5,033,434 | 591,339 | $ 11,143,304 | ||
Reinvested dividends and distributions | 219,609 | 4,042,999 | 1,146,171 | 19,874,602 | ||
Shares repurchased | (806,129) | (14,884,936) | (2,653,162) | (49,721,726) | ||
Net Increase/(Decrease) | (313,452) | $(5,808,503) |
| (915,652) | $(18,703,820) |
6. Purchases and Sales of Investment Securities
For the period ended December 31, 2016, 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 |
$331,166,496 | $ 362,495,562 | $ - | $ - |
7. Merger Related Matters
On October 3, 2016, Janus Capital Group Inc. (JCGI), the direct parent of Janus Capital Management LLC, the investment adviser to the Fund (Janus Capital), and Henderson Group plc (Henderson) announced that they had entered into an Agreement and Plan of Merger (Merger Agreement) relating to the strategic combination of Henderson and JCGI (the Transaction). Pursuant to the Merger Agreement, a newly formed, direct wholly-owned subsidiary of Henderson will merge with and into JCGI, with JCGI as the surviving corporation and a direct wholly-
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Notes to Financial Statements (unaudited)
owned subsidiary of Henderson. The Transaction is currently expected to close in the second quarter of 2017, subject to requisite shareholder and regulatory approvals.
The consummation of the Transaction may be deemed to be an assignment (as defined in the Investment Company Act of 1940, as amended) of the current advisory agreement between Janus Capital and the Fund. In addition, the consummation of the Transaction may be deemed to be an assignment of the current sub-advisory agreements between Janus Capital and each of INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins), the subadvisers to certain funds. As a result, the consummation of the Transaction may cause such investment advisory agreements and investment sub-advisory agreements to terminate automatically in accordance with their respective terms.
On December 8, 2016, the Board of Trustees of the Fund (the Board of Trustees) approved, subject to approval of shareholders, a new investment advisory agreement between the Fund and Janus Capital in order to permit Janus Capital to continue to provide advisory services to the Fund following the closing of the Transaction. The new investment advisory agreement will have substantially similar terms as the corresponding current investment advisory agreement.
On December 8, 2016, the Board of Trustees also approved interim investment advisory agreements between the Fund and Janus Capital and interim sub-advisory agreements between Janus Capital and the Funds subadviser, as applicable. In the event shareholders of the Fund do not approve the new investment advisory agreement (and, if applicable, the new investment sub-advisory agreement) prior to the closing of the Transaction, an interim investment advisory agreement (and, if applicable, an interim investment sub-advisory agreement) will take effect with respect to the Fund upon the closing of the Transaction. Such interim agreements will continue in effect for a term ending on the earlier of 150 days from the closing of the Transaction, or when shareholders of the Fund approve the new investment advisory agreement and new investment sub-advisory agreement, if applicable. Compensation earned by Janus Capital and the Funds subadviser, if applicable, under their respective interim investment advisory agreement or interim investment sub-advisory agreement will be held in an interest-bearing escrow account and will be paid to Janus Capital or the subadviser, as applicable, if shareholders approve the corresponding new investment advisory agreement or new investment sub-advisory agreement prior to the end of the interim period. Except for the term and escrow provisions described above, the terms of each interim investment advisory agreement and interim investment subadvisory agreement are substantially similar to those of the corresponding current investment advisory agreement or current investment sub-advisory agreement.
In addition, the Funds name will change to reflect Janus Henderson as part of the Funds name.
8. Fund Merger
On December 8, 2016, the Board of Trustees of the Fund approved an Agreement and Plan of Reorganization that provides for the merger of the Fund into INTECH U.S. Managed Volatility Fund (the Acquiring Fund), a similarly managed fund (the Merger).
The Merger is subject to certain conditions, including approval by shareholders of the Fund.
The Merger is expected to be tax-free for federal income tax purposes; therefore, Fund shareholders should not realize a tax gain or loss when the Merger is implemented. The Merger, however, may accelerate distributions, which are taxable, as the tax year for the Fund will end on the date of the Merger. In connection with the Merger, shareholders of each class of shares of the Fund will receive shares of a corresponding class of the Acquiring Fund approximately equivalent in dollar value to the Fund shares owned immediately prior to the Merger. Investors who are Fund shareholders of record as of December 29, 2016, will receive a proxy statement/prospectus which includes important information regarding the Merger. Only Fund shareholders as of December 29, 2016, are eligible to vote on the Merger. Therefore, if you purchased shares of the Fund after December 29, 2016, and assuming shareholders of the Fund as of that date approve the Merger, any shares of the Fund you hold as of the Merger date will automatically be converted into shares of the Acquiring Fund.
Shareholders of the Fund may redeem their shares or exchange their shares for shares of another Janus fund for which they are eligible to purchase at any time prior to the Merger. Any applicable contingent deferred sales charges (CDSC) charged by the Fund will be waived for redemptions or exchanges through the date of the Merger. Exchanges by Class A shareholders of the Fund into Class A Shares of another Janus fund are not subject to any applicable initial sales
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Notes to Financial Statements (unaudited)
charge. For shareholders holding shares through an intermediary, check with your intermediary regarding other Janus funds and share classes offered through your intermediary.
A full description of the Acquiring Fund and the terms of the Merger will be contained in the proxy statement/prospectus that will be sent to shareholders of the Fund of record as of December 29, 2016. Janus Capital encourages you to read the proxy statement/prospectus when it is available as it contains important information regarding the Merger. A copy of the proxy statement/prospectus, when it is available, will be available at janus.com/fundupdate, or you may request a free copy by calling 1-877-335-2687 (or 1-800-525-3713 if you hold shares directly with Janus Capital).
Shareholders of record of the Fund as of December 29, 2016, are expected to receive a proxy statement, notice of special meeting of shareholders, and proxy card, containing detailed information regarding shareholder proposals with respect to these and certain other matters. The shareholder meeting is expected to be held on or about April 6, 2017.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2016 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.
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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 and Sub-Advisory Agreements with Janus and Janus Affiliates during the Period
On September 15, 2016, Janus Capital Group Inc. (Janus) advised the Trustees of Janus Investment Fund (the Trust), each of whom serves as an independent Trustee (the Board or the Trustees), of its intent to seek a strategic combination of its advisory business with Henderson Group plc (Henderson). The Board met with the Chief Executive Officer of Janus, who outlined the proposed combination and the potential benefits to Janus Capital Management LLC (Janus Capital) and each Fund of the Trust (each, a Fund and collectively, the Funds). Subsequent to the September 15, 2016 meeting, the Trustees identified a list of basic principles, which they believed should serve as the foundation for their review of the organizational, operational and strategic issues involved with any potential change in control of Janus Capital, the investment adviser to the Funds. These basic principles were communicated to Janus Capital on September 27, 2016, and were intended to be shared with Henderson. On October 3, 2016, Janus announced that it had entered into a definitive Agreement and Plan of Merger with Henderson pursuant to which Janus and Henderson agreed to effect an all-stock merger of equals strategic combination of their respective businesses, with Janus Capital surviving the merger as a direct wholly-owned subsidiary of Henderson (the Transaction). The Board was advised that, subject to certain conditions, the Transaction is currently expected to close during the second quarter of 2017.
As part of its due diligence, the Board developed an initial list of questions related to the proposed transaction, which was provided to Janus Capital on October 6, 2016. At a special Board meeting held on October 19, 2016, the Board considered Janus Capitals response to the initial information request and met with the management of Janus to discuss the impact of the Transaction on the nature, extent and quality of services Janus Capital is expected to provide to the Janus Funds following the Transaction, addressing, among other matters, the personnel expected to provide such services, and the resources available to do so. After its October 19, 2016 meeting, the Board developed a supplemental request for additional information, which was provided to Janus Capital on October 26, 2016. At another special Board meeting held on November 7-8, 2016, the Board considered Janus Capitals response to the supplemental information request and again met with the management of Janus and Henderson to discuss the impact of the Transaction on the nature, extent and quality of services Janus Capital is expected to provide to the Janus Funds following the Transaction, and also met with various officers of the Funds and of Janus Capital, including various Fund portfolio managers. After its November 7-8, 2016 meeting, the Board developed a second supplemental request for additional information, which was provided to Janus Capital on November 21, 2016. On December 7-8, 2016, the Board met to consider Janus Capitals response to the second supplemental information request and to also consider the proposed new investment advisory agreements between the Trust, on behalf of each Fund, and Janus Capital (each, a New Advisory Agreement and collectively, the New Advisory Agreements) and the new sub-advisory agreements between Janus Capital and each of the Funds that utilize INTECH Investment Management LLC (INTECH), Perkins Investment Management LLC (Perkins), or Janus Singapore Pte. Limited (Janus Singapore, and together with INTECH and Perkins, the Sub-Advisers and each, a Sub-Adviser) as sub-advisers (each, a New Sub-Advisory Agreement and collectively, the New Sub-Advisory Agreements) to take effect immediately after the Transaction or shareholder approval, whichever is later. During each of these meetings, the Board sought additional and clarifying information as it deemed necessary or appropriate. In addition, the Board engaged its independent fee consultant to help evaluate certain of the proposals that the Board was being asked to consider. Throughout the process, the Board had the assistance of its independent legal counsel, who advised them on, among other things, its duties and obligations.
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Additional Information (unaudited)
In connection with the Boards review, Janus Capital provided, and the Board obtained, substantial information regarding the following matters: the management, financial position and business of Henderson; the history of Hendersons business and operations; the investment performance of the investment companies advised by Henderson; the proposed structure, operations and investment processes of the combined investment management organization after the Transaction and the strategy for operating and growing the business following the Transaction; the future plans of Janus and Henderson with respect to the Funds and any proposed changes to the operations or structure of the Funds; and the future plans of Janus and Henderson with respect to the provision of services to the Funds, and the entities providing such services, including those affiliated with Janus. The Board also received information regarding the terms of the Transaction, anticipated management of the combined organization, the resources that each of Janus and Henderson bring to the combined organization and the process being followed by Janus and Henderson to integrate their organizations. The Board also received information regarding the impact of the Transaction on each of INTECH, Perkins and Janus Singapore.
In connection with the Boards approval of New Advisory Agreements and New Sub-Advisory Agreements at its December 8, 2016 meeting, the Board also continued its on-going annual process to determine whether to continue the existing investment advisory agreements between Janus Capital and the Trust on behalf of each Fund (each, a Current Advisory Agreement and collectively, the Current Advisory Agreements) and the existing sub-advisory agreements between Janus Capital and each of the Funds that utilize INTECH, Perkins, or Janus Singapore as sub-advisers (each, a Current Sub-Advisory Agreement and collectively, the Current Sub-Advisory Agreements). In this regard, the Board received and reviewed information provided by Janus and the respective Sub-Advisers in response to requests of the Board and its independent legal counsel. The Board also received and reviewed information and analysis provided by, and in response to requests of, its independent fee consultant. The Board noted that as part of this annual process, the Board had considered and was in the process of considering, numerous factors, including the nature and quality of services provided by Janus Capital and each Sub-Adviser, as applicable; investment performance, on an absolute basis and relative to appropriate peer groups and one or a combination of market indices; investment management fees, expense ratios and asset sizes of the Funds and peer groups; investment management fees charged to comparable investment companies, separate accounts and non-fund clients; Janus Capitals profitability from managing the Funds; fall-out benefits to Janus Capital from its relationship to the Funds, including revenues derived from services provided to the Funds by affiliates of Janus Capital; and the potential benefits to Janus Capital, the Funds of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms.
In determining whether to approve the New Advisory Agreement for each Fund and the New Sub-Advisory Agreement for Funds managed by INTECH, Perkins or Janus Singapore in connection with the Transaction, and whether to recommend approval to Fund shareholders, the Board received information and made inquiries into all matters as it deemed appropriate. The Board reviewed and analyzed various factors it deemed relevant, including the following factors, among others, none of which by itself was considered dispositive:
· The terms of the New Advisory Agreements are substantially similar to the corresponding Current Advisory Agreements, and the contractual fee rate will not change. In this regard, see the discussion of the Boards considerations with respect to its most recent approval of the Current Advisory Agreements prior to December 8, 2016, as disclosed in each Funds most recent prior annual or semi-annual shareholder report, as applicable.
· The terms of the New Sub-Advisory Agreements are substantially similar to the corresponding Current Sub-Advisory Agreements, and the contractual fee rate will not change. In this regard, see the discussion of the Boards considerations with respect to its most recent approval of the Current Sub-Advisory Agreements prior to December 8, 2016, as disclosed in each Funds most recent prior annual or semi-annual shareholder report, as applicable.
· Janus Capitals plans for the operation of the Funds, including its plans for the continued provision of all services currently provided to the Funds by Janus Capital and its affiliates, including, among others, investment advisory services, portfolio trading services, and Fund administrative and accounting services, and the personnel and resources proposed to support the provision of such services.
· The estimated profitability to Janus Capital from managing the Funds after the Transaction, including potential economies of scale and fall-out benefits to Janus Capital from its relationship to the Funds, including revenues derived from services provided to the Funds by affiliates of Janus Capital, and the potential benefits to Janus
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Additional Information (unaudited)
Capital, and the Funds of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms.
In connection with its deliberations, the Board received assurances from Janus, on behalf of itself and its affiliates (collectively, Janus) including the following:
· Janus has provided to the Board such information as it believes is reasonably necessary to evaluate the New Advisory Agreements and New Sub-Advisory Agreements.
· Janus is committed to the continuance, without interruption, of services to the Funds of at least the type and quality currently provided by Janus Capital and its affiliates, or superior thereto.
· The Transaction is not expected to affect negatively the nature, extent or quality of the investment advisory services provided by Janus Capital to the Funds following the Transaction, and the investment advisory services are expected to be at least comparable to the services being provided under the Current Advisory Agreements and Current Sub-Advisory Agreements. In this regard, the Board noted specific representations that Janus does not intend for the nature, extent or quality of investment advisory and other services to be provided to the Funds following the Transaction to change, and the extent of such services were expected to increase based on the combined resources of the combined investment management organization after the Transaction, and should the nature, extent or quality of such services decline, Janus would commit the resources needed to return such services to pre-Transaction levels.
· The Funds current operations were expected to remain largely unchanged, except for certain fund reorganizations which will be separately considered by the Board, and such other changes as were or will be presented to the Board.
· Janus does not intend to make changes to the portfolio managers providing services to the Funds, other than proposed changes in the management of certain Funds as discussed with the Board, including those related to proposals to merge certain Funds with Funds managed by Henderson Global Investors (North America) Inc., an indirect, wholly-owned subsidiary of Henderson, and subject to such changes as may arise at any time as a result of the ongoing process of portfolio manager evaluation.
· After the Transaction, the extent of distribution and marketing services provided to the Janus Funds were expected to increase based on the combined resources of Janus and Henderson. In this regard, Janus Capital advised the Board that after the Transaction, the extent of distribution and marketing services provided to the Janus Funds are expected to increase based on the combined resources of Janus and Henderson. This is due primarily to the anticipated increase of sales related resources and expanded global presence of the combined Janus Henderson organization, which is expected to enhance visibility and brand recognition of the Janus Henderson Funds.
· The intent of Janus Capital to take the necessary and appropriate steps to retain and attract its key investment advisory personnel.
· The intent of Janus to take the necessary and appropriate steps to retain and attract its key compliance, financial, fund accounting and administrative personnel supporting the management and oversight of the Funds.
· Janus is not aware of any express or implied term, condition, arrangement or understanding that would impose in its best judgement an unfair burden on any Fund as a result of the Transaction, as defined in Section 15(f) of the 1940 Act, and that Janus will take no action that would have the effect of imposing such an unfair burden on any Fund in connection with the Transaction.
Janus assured the Board that it intended to comply with Section 15(f) of the Investment Company Act of 1940, as amended (the 1940 Act). Section 15(f) provides a non-exclusive safe harbor for an investment adviser to an investment company or any of its affiliated persons to receive any amount or benefit in connection with a change in control of the investment adviser so long as two conditions are met. First, for a period of three years after the transaction, at least 75% of the board members of the investment company must not be interested persons of such investment adviser (as defined under the 1940 Act). The composition of the Board is in compliance with this provision of Section 15(f). In addition, after careful review and consideration, the Board determined that it would be in the best interests of the Funds to add to the Board an individual who currently acts as a non-interested board member of the
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Additional Information (unaudited)
Henderson Trust. The Board believes that this change in the Board composition will provide perspective and insight relating to experience working with the Henderson organization. The Boards Nominating and Governance Committee considered a number of candidates and recommended that the Board nominate one proposed new trustee from those candidates who currently act as non-interested board members of the Henderson Trust. The Board approved that trustee nominee to serve on the Board, subject to election by the shareholders of the Funds and contingent on the closing of the Transaction. If the new trustee is elected and serves on the Board, the Board composition would continue to satisfy the provisions of Section 15(f).
To meet the second condition of Section 15(f), an unfair burden must not be imposed upon the investment company as a result of such transaction or any express or implied terms, conditions or understandings applicable thereto. The term unfair burden is defined in Section 15(f) to include any arrangement during the two-year period after the transaction, whereby the investment adviser, or any interested person of such adviser, receives or is entitled to receive any compensation, directly or indirectly, from the investment company or its shareholders (other than fees for bona fide investment advisory or other services) or from any person in connection with the purchase or sale of securities or other property to, from or on behalf of the investment company (other than bona fide ordinary compensation as principal underwriter for such investment company).
Janus represented that it does not believe that an unfair burden will be placed on the Funds as a result of the Transaction. In furtherance thereof, Janus has undertaken to pay the costs of preparing and distributing proxy materials to, and of holding the meetings of, the Funds shareholders (the Meetings), as well as other fees and expenses in connection with the Transaction, including the reasonable fees and expenses of legal counsel and consultants to the Funds and the Trustees. In addition, Janus has agreed, for a period of two years following the closing of the Transaction, (i) not to request any increases to advisory fees for the Funds, other than those proposed to and approved by the Board prior to the close of the Transaction, and (ii) to continue to use the current process by which expense caps are set annually for the Funds.
As a result of its review and consideration of the New Investment Advisory Agreements and New Sub-Advisory Agreements in connection with the Transaction, at a meeting on December 8, 2016, the Board voted unanimously to approve a New Investment Advisory Agreement for each Fund and a New Sub-Advisory Agreement for each Fund managed by INTECH, Perkins or Janus Singapore, and to recommend such agreements to the Funds shareholders for their approval.
Approval of Interim Advisory and Sub-Advisory Agreements with Janus and Janus Affiliates during the Period
In the event shareholders of a Fund do not approve such Funds New Advisory Agreement and/or New Sub-Advisory Agreement at the Meetings prior to the closing of the Transaction, Janus Capital proposed that an interim investment advisory agreement between Janus Capital and such Fund (each, an Interim Advisory Agreement and collectively, the Interim Advisory Agreements) and an interim sub-advisory agreement between Janus Capital and the applicable Sub-Adviser (each, an Interim Sub-Advisory Agreement and collectively, the Interim Sub-Advisory Agreements) take effect upon the closing of the Transaction. At the December 8, 2016 meeting, the Board, all of whom are Independent Trustees, unanimously approved an Interim Advisory Agreement for each Fund and an Interim Sub-Advisory Agreement for each applicable Fund in order to assure continuity of investment advisory services to the Funds and sub-advisory services to the sub-advised Funds after the Transaction. The terms of each Interim Advisory Agreement are substantially identical to those of the applicable Current Advisory Agreement and New Advisory Agreement, except for the term and escrow provisions described below. Similarly, the terms of each Interim Sub-Advisory Agreement are substantially identical to those of the Current Sub-Advisory Agreements and New Sub-Advisory Agreements, except for the term and escrow provisions described below. The Interim Advisory Agreement and Interim Sub-Advisory Agreement will continue in effect for a term ending on the earlier of 150 days from the closing of the Transaction (the 150-day period) or when shareholders of the Fund approve the New Advisory Agreement and/or New Sub-Advisory Agreement. Pursuant to Rule 15a-4 under the 1940 Act, compensation earned by Janus Capital under an Interim Advisory Agreement and compensation earned by a Sub-Adviser under an Interim Sub-Advisory Agreement will be held in an interest-bearing escrow account. If shareholders of a Fund approve the New Advisory Agreement prior to the end of the 150-day period, the amount held in the escrow account under the Interim Advisory Agreement will be paid to Janus Capital. If shareholders of a Fund approve the New Advisory Agreement and New Sub-Advisory Agreement prior to the end of the 150-day period, the amount held in the escrow account under the Interim Sub-Advisory Agreement will be paid to the Sub-Adviser. If shareholders of a Fund do not approve the New Advisory Agreement prior to the end of the 150-day period, the Board will take such action as it
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Additional Information (unaudited)
deems to be in the best interests of the Fund, and Janus Capital will be paid the lesser of its costs incurred in performing its services under the Interim Advisory Agreement or the total amount in the escrow account, plus interest earned. If shareholders of a Fund do not approve the New Advisory Agreement and/or New Sub-Advisory Agreement prior to the end of the 150-day period, the Board will take such action as it deems to be in the best interests of the Fund, and the Sub-Adviser will be paid the lesser of its costs incurred in performing its services under the Interim Sub-Advisory Agreement or the total amount in the escrow account, plus interest earned.
Approval of Sub-Advisory Agreements with Henderson Investment Management Limited during the Period
Janus Capital met with the Trustees on November 7-8, 2016, and December 7-8, 2016, to discuss the approval of a new sub-advisory agreement between Janus Capital and Henderson Investment Management Limited (HIML) (each, a HIML Sub-Advisory Agreement and collectively, the HIML Sub-Advisory Agreements) on behalf of each of Janus Asia Equity Fund, Janus Emerging Markets Fund, and Janus Global Real Estate Fund (each, an HIML Fund and together, the HIML Funds) to take effect immediately after the closing of the Transaction or shareholder approval, whichever is later. At the meetings, the Trustees also discussed the HIML Sub-Advisory Agreements with their independent counsel in executive session. During the course of these meetings, the Trustees requested and considered such information as they deemed relevant to their deliberations. In addition, at prior meetings and during the course of these meetings the Board also undertook a comprehensive process to evaluate the impact of the Transaction on the nature, quality and extent of services expected to be provided by Janus Capital and HIML to each HIML Fund, including after the completion of the Transaction. For a fuller discussion of the Boards consideration of the approval of a new investment advisory agreement for the HIML Funds in connection with the Transaction, see Approval of Advisory and Sub-Advisory Agreements with Janus and its Affiliates During the Period above.
At a meeting of the Board of Trustees held on December 8, 2016, the Trustees considered the HIML Sub-Advisory Agreements. In determining whether to approve the HIML Sub-Advisory Agreements, and whether to recommend approval to the shareholders of each HIML Fund, the Board received information and made inquiries into all matters as it deemed appropriate. The Board reviewed and analyzed various factors it deemed relevant, including the following factors, among others, none of which by itself was considered dispositive:
· the terms of each HIML Sub-Advisory Agreement;
· the nature, quality and extent of services expected to be provided under the HIML Sub-Advisory Agreements, including the reputation, qualifications and background of HIML and its operational and compliance infrastructures;
· the investment approach, the experience and skills of senior management and investment personnel of HIML, including the portfolio managers who would be responsible for managing all or part of the portfolio of each HIML Fund, noting the resources made available to such personnel;
· the ability of HIML to attract and retain high-quality personnel and the organizational depth of HIML;
· the sub-advisory fee rate under each HIML Sub-Advisory Agreement, as well as the overall management fee structure of each HIML Fund, noting that the sub-advisory fee rate is consistent with the approach utilized in the Janus Funds complex for other sub-advisory relationships, taking into account the allocation of managed assets between Janus Capital and HIML for the Global Real Estate Fund;
· under each HIML Sub-Advisory Agreement, Janus Capital would be responsible for paying HIML out of its fees;
· the fall out benefits to HIML and its affiliates from its relationship with each HIML Fund, including the potential benefits to HIML and its affiliates and each HIML Fund of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms;
· the potential for economies of scale with respect to the overall fee structure of each HIML Fund and whether either Fund will benefit from any economies of scale; and
· the costs of seeking approval of the HIML Sub-Advisory Agreements will not be borne by the HIML Funds.
As a result of its review and consideration of each HIML Sub-Advisory Agreement and related matters, on December 8, 2016, the Board voted unanimously to approve each HIML Sub-Advisory Agreement and to recommend such agreement to each HIML Funds shareholders for their approval.
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INTECH U.S. Core Fund
Additional Information (unaudited)
Renewal of Investment Advisory and Sub-Advisory Agreements for INTECH U.S. Core Fund
As noted above, at its December 8, 2016 meeting, the Board continued its on-going annual process to determine whether to continue the Current Advisory Agreements and the Current Sub-Advisory Agreements. In this regard, the Board received and reviewed information provided by Janus and the respective Sub-Advisers in response to requests of the Board and its independent legal counsel. The Board also received and reviewed information and analysis provided by, and in response to requests of, its independent fee consultant. The Board noted that the Current Advisory Agreement between the Trust, on behalf of INTECH U.S. Core Fund, and Janus Capital and the Current Sub-Advisory Agreement between Janus Capital and INTECH, on behalf of the Fund, would expire on January 1, 2017, if not renewed. The Board noted that the date of termination for the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds was February 1, 2017, if not renewed. Accordingly, the Board voted unanimously to renew the Current Advisory Agreement and the Current Sub-Advisory Agreement for INTECH U.S. Core Fund through January 31, 2017 in order to (i) align the termination date of such Agreements with the termination date of the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds and (ii) allow for a more complete consideration of such Agreements, as well as the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds.
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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, 2016. 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, swaptions, 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 | 39 |
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. Also included are ratios of expenses and net investment income to average net assets.
40 | DECEMBER 31, 2016 |
INTECH U.S. Core Fund
Useful Information About Your Fund Report (unaudited)
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 | 41 |
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-0217-7548 | 125-24-93015 02-17 |
SEMIANNUAL REPORT December 31, 2016 | |||
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)
FUND SNAPSHOT INTECHs active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC | ||||
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2016, INTECH U.S. Managed Volatility Fund returned -0.58% for its Class I Shares. This compares to the 8.01% 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
Led by riskier segments of the market, the U.S. equity market as measured by the Russell 1000 Index posted a strong return of 8.01% for the six-month period ending December 31, 2016. INTECH U.S. Managed Volatility Fund underperformed the Russell 1000 Index over the period and generated a return of -0.58%.
An overall increase in market diversity over the period reflected a change in the distribution of capital, in which smaller cap stocks outperformed larger 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 positively impacted by the overall increase in market diversity, the Fund was negatively impacted by its defensive positioning and underperformed during the period.
The Funds defensive positioning acted as headwind to relative performance as investors risk appetites increased in U.S. markets during the period. 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, higher beta stocks strongly outperformed lower beta stocks and the overall market, on average. Consequently, the Funds overweight to lower beta stocks and underweight to higher beta stocks detracted from the Funds relative return for the period.
The Funds overall active sector positioning also detracted from relative performance during the period. Average overweight allocations to the defensive utilities and consumer staples sectors, which were two of the weakest performing sectors during the period, as well as an average overweight allocation to the real estate sector, detracted from the Funds relative performance. An average underweight allocation to some strong performing mega cap bank stocks was among the ten largest detractors 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.
Janus Investment Fund | 1 |
INTECH U.S. Managed Volatility Fund (unaudited)
Managing downside exposure potentially allows for returns to compound and improve risk-adjusted returns over time. Over the long term, we believe that by reducing risk when market volatility increases and behaving like a core equity fund when market volatility is low, the Fund will achieve its investment objective of producing an excess return over the benchmark with lower absolute risk. 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 U.S. Managed Volatility Fund.
2 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund (unaudited)
Fund At A Glance
December 31, 2016
5 Largest Equity Holdings - (% of Net Assets) | |
General Mills Inc | |
Food Products | 3.1% |
Reynolds American Inc | |
Tobacco | 2.7% |
Altria Group Inc | |
Tobacco | 2.5% |
Newmont Mining Corp | |
Metals & Mining | 2.1% |
American Water Works Co Inc | |
Water Utilities | 1.6% |
12.0% |
Asset Allocation - (% of Net Assets) | |||||
Common Stocks | 99.3% | ||||
Investment Companies | 4.3% | ||||
Other | (3.6)% | ||||
100.0% |
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2016 | As of June 30, 2016 |
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, 2016 |
|
| per the October 28, 2016 prospectuses | |||||||
|
| Fiscal
| One
| Five
| Ten | Since |
|
| Total
Annual Fund | |
Class A Shares at NAV |
| -0.77% | 7.86% | 13.59% | 5.60% | 6.62% |
|
| 0.93% | |
Class A Shares at MOP |
| -6.46% | 1.70% | 12.25% | 4.97% | 6.05% |
|
|
| |
Class C Shares at NAV | -1.15% | 6.97% | 12.82% | 4.84% | 5.85% |
|
| 1.66% | ||
Class C Shares at CDSC |
| -2.13% | 5.97% | 12.82% | 4.84% | 5.85% |
|
|
| |
Class D Shares(1) |
| -0.58% | 7.95% | 13.76% | 5.69% | 6.71% |
|
| 0.83% | |
Class I Shares |
| -0.58% | 8.08% | 13.93% | 5.87% | 6.90% |
|
| 0.65% | |
Class N Shares |
| -0.53% | 8.16% | 13.93% | 5.87% | 6.90% |
|
| 0.61% | |
Class S Shares |
| -0.71% | 7.73% | 13.57% | 5.45% | 6.47% |
|
| 1.13% | |
Class T Shares |
| -0.64% | 8.00% | 13.70% | 5.57% | 6.57% |
|
| 0.86% | |
Russell 1000 Index |
| 8.01% | 12.05% | 14.69% | 7.08% | 7.82% |
|
|
| |
Morningstar Quartile - Class I Shares |
| - | 4th | 2nd | 3rd | 3rd |
|
|
| |
Morningstar Ranking - based on total returns for Large Blend Funds |
| - | 1,150/1,456 | 544/1,272 | 689/1,110 | 560/1,071 |
|
|
|
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.
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 non-diversification, 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.
4 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund (unaudited)
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 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.
See Financial Highlights for actual expense ratios during the reporting period.
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.
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.
© 2016 Morningstar, Inc. All Rights Reserved.
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.
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 December 30, 2005
(1) Closed to certain new investors.
Janus Investment Fund | 5 |
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 | $992.30 | $4.67 |
| $1,000.00 | $1,020.52 | $4.74 | 0.93% | ||
Class C Shares | $1,000.00 | $988.50 | $8.52 |
| $1,000.00 | $1,016.64 | $8.64 | 1.70% | ||
Class D Shares | $1,000.00 | $994.20 | $3.82 |
| $1,000.00 | $1,021.37 | $3.87 | 0.76% | ||
Class I Shares | $1,000.00 | $994.20 | $3.32 |
| $1,000.00 | $1,021.88 | $3.36 | 0.66% | ||
Class N Shares | $1,000.00 | $994.70 | $2.92 |
| $1,000.00 | $1,022.28 | $2.96 | 0.58% | ||
Class S Shares | $1,000.00 | $992.90 | $5.27 |
| $1,000.00 | $1,019.91 | $5.35 | 1.05% | ||
Class T Shares | $1,000.00 | $993.60 | $4.17 |
| $1,000.00 | $1,021.02 | $4.23 | 0.83% | ||
| Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Funds prospectuses for more information regarding waivers and/or reimbursements. |
6 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks 99.3% | |||||||
Aerospace & Defense 3.5% | |||||||
BWX Technologies Inc | 72,200 | $2,866,340 | |||||
General Dynamics Corp | 3,500 | 604,310 | |||||
HEICO Corp | 11,700 | 794,430 | |||||
Huntington Ingalls Industries Inc | 6,300 | 1,160,397 | |||||
L-3 Communications Holdings Inc | 10,300 | 1,566,733 | |||||
Lockheed Martin Corp | 21,100 | 5,273,734 | |||||
Northrop Grumman Corp | 7,300 | 1,697,834 | |||||
Orbital ATK Inc | 2,700 | 236,871 | |||||
Raytheon Co | 17,800 | 2,527,600 | |||||
Spirit AeroSystems Holdings Inc | 12,000 | 700,200 | |||||
TransDigm Group Inc | 3,600 | 896,256 | |||||
18,324,705 | |||||||
Air Freight & Logistics 0.1% | |||||||
Expeditors International of Washington Inc | 2,400 | 127,104 | |||||
United Parcel Service Inc | 3,200 | 366,848 | |||||
493,952 | |||||||
Airlines 0.8% | |||||||
American Airlines Group Inc | 4,300 | 200,767 | |||||
Copa Holdings SA | 27,400 | 2,488,742 | |||||
Southwest Airlines Co | 9,400 | 468,496 | |||||
Spirit Airlines Inc* | 5,300 | 306,658 | |||||
United Continental Holdings Inc* | 6,500 | 473,720 | |||||
3,938,383 | |||||||
Automobiles 0.2% | |||||||
Thor Industries Inc | 8,400 | 840,420 | |||||
Banks 2.5% | |||||||
Bank of America Corp | 18,000 | 397,800 | |||||
Bank of Hawaii Corp | 4,400 | 390,236 | |||||
BB&T Corp | 7,600 | 357,352 | |||||
Citizens Financial Group Inc | 44,300 | 1,578,409 | |||||
Commerce Bancshares Inc/MO | 24,066 | 1,391,256 | |||||
Fifth Third Bancorp | 59,600 | 1,607,412 | |||||
First Republic Bank/CA | 2,100 | 193,494 | |||||
KeyCorp | 44,200 | 807,534 | |||||
People's United Financial Inc# | 23,200 | 449,152 | |||||
PNC Financial Services Group Inc | 12,700 | 1,485,392 | |||||
Popular Inc | 78,200 | 3,426,724 | |||||
Regions Financial Corp | 25,400 | 364,744 | |||||
US Bancorp | 7,700 | 395,549 | |||||
12,845,054 | |||||||
Beverages 1.2% | |||||||
Constellation Brands Inc | 28,000 | 4,292,680 | |||||
Dr Pepper Snapple Group Inc | 18,100 | 1,641,127 | |||||
PepsiCo Inc | 3,100 | 324,353 | |||||
6,258,160 | |||||||
Biotechnology 0.7% | |||||||
Amgen Inc | 1,300 | 190,073 | |||||
Incyte Corp* | 1,500 | 150,405 | |||||
Neurocrine Biosciences Inc* | 5,000 | 193,500 | |||||
Seattle Genetics Inc*,# | 56,400 | 2,976,228 | |||||
3,510,206 | |||||||
Building Products 0.4% | |||||||
AO Smith Corp | 5,200 | 246,220 | |||||
Lennox International Inc | 10,400 | 1,592,968 | |||||
Owens Corning | 8,000 | 412,480 | |||||
2,251,668 | |||||||
Capital Markets 2.8% | |||||||
CBOE Holdings Inc# | 52,300 | 3,864,447 | |||||
CME Group Inc | 16,800 | 1,937,880 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 7 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Capital Markets (continued) | |||||||
Eaton Vance Corp | 6,500 | $272,220 | |||||
FactSet Research Systems Inc | 2,600 | 424,918 | |||||
Goldman Sachs Group Inc | 1,400 | 335,230 | |||||
Intercontinental Exchange Inc | 1,500 | 84,630 | |||||
LPL Financial Holdings Inc | 39,900 | 1,404,879 | |||||
MarketAxess Holdings Inc | 9,200 | 1,351,664 | |||||
Morgan Stanley | 22,700 | 959,075 | |||||
MSCI Inc | 14,600 | 1,150,188 | |||||
Nasdaq Inc | 22,700 | 1,523,624 | |||||
NorthStar Asset Management Group Inc | 20,300 | 302,876 | |||||
Raymond James Financial Inc | 3,500 | 242,445 | |||||
S&P Global Inc | 3,600 | 387,144 | |||||
State Street Corp | 4,400 | 341,968 | |||||
TD Ameritrade Holding Corp | 3,100 | 135,160 | |||||
14,718,348 | |||||||
Chemicals 0.4% | |||||||
Ashland Global Holdings Inc | 5,400 | 590,166 | |||||
Cabot Corp | 2,900 | 146,566 | |||||
International Flavors & Fragrances Inc | 5,700 | 671,631 | |||||
Scotts Miracle-Gro Co | 9,200 | 879,060 | |||||
2,287,423 | |||||||
Commercial Services & Supplies 1.7% | |||||||
Cintas Corp | 3,700 | 427,572 | |||||
Copart Inc* | 13,700 | 759,117 | |||||
Republic Services Inc | 96,200 | 5,488,210 | |||||
Waste Management Inc | 28,900 | 2,049,299 | |||||
8,724,198 | |||||||
Communications Equipment 0.6% | |||||||
Arista Networks Inc* | 12,600 | 1,219,302 | |||||
Harris Corp | 11,100 | 1,137,417 | |||||
Motorola Solutions Inc | 6,300 | 522,207 | |||||
Palo Alto Networks Inc* | 2,800 | 350,140 | |||||
3,229,066 | |||||||
Construction & Engineering 0.1% | |||||||
Quanta Services Inc* | 17,200 | 599,420 | |||||
Construction Materials 0% | |||||||
Martin Marietta Materials Inc | 1,000 | 221,530 | |||||
Containers & Packaging 1.2% | |||||||
Berry Plastics Group Inc* | 11,800 | 575,014 | |||||
Graphic Packaging Holding Co | 10,600 | 132,288 | |||||
International Paper Co | 14,600 | 774,676 | |||||
Packaging Corp of America | 50,700 | 4,300,374 | |||||
Sonoco Products Co | 2,800 | 147,560 | |||||
WestRock Co | 8,100 | 411,237 | |||||
6,341,149 | |||||||
Distributors 0% | |||||||
Pool Corp | 1,500 | 156,510 | |||||
Diversified Financial Services 0% | |||||||
Berkshire Hathaway Inc* | 500 | 81,490 | |||||
Diversified Telecommunication Services 1.3% | |||||||
AT&T Inc | 114,976 | 4,889,929 | |||||
Zayo Group Holdings Inc* | 51,500 | 1,692,290 | |||||
6,582,219 | |||||||
Electric Utilities 6.3% | |||||||
Alliant Energy Corp | 46,700 | 1,769,463 | |||||
American Electric Power Co Inc | 11,500 | 724,040 | |||||
Duke Energy Corp | 13,700 | 1,063,394 | |||||
Edison International | 40,300 | 2,901,197 | |||||
Entergy Corp | 37,500 | 2,755,125 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Electric Utilities (continued) | |||||||
Exelon Corp | 11,300 | $401,037 | |||||
Hawaiian Electric Industries Inc | 18,400 | 608,488 | |||||
NextEra Energy Inc | 15,500 | 1,851,630 | |||||
PG&E Corp | 56,300 | 3,421,351 | |||||
Pinnacle West Capital Corp | 29,700 | 2,317,491 | |||||
PPL Corp | 14,900 | 507,345 | |||||
Southern Co | 112,900 | 5,553,551 | |||||
Westar Energy Inc | 78,400 | 4,417,840 | |||||
Xcel Energy Inc | 110,600 | 4,501,420 | |||||
32,793,372 | |||||||
Electronic Equipment, Instruments & Components 0.5% | |||||||
Amphenol Corp | 9,200 | 618,240 | |||||
Cognex Corp | 9,700 | 617,114 | |||||
Corning Inc | 38,400 | 931,968 | |||||
Dolby Laboratories Inc | 13,300 | 601,027 | |||||
2,768,349 | |||||||
Energy Equipment & Services 0.1% | |||||||
Baker Hughes Inc | 5,600 | 363,832 | |||||
Equity Real Estate Investment Trusts (REITs) 8.4% | |||||||
Alexandria Real Estate Equities Inc | 6,800 | 755,684 | |||||
American Campus Communities Inc | 33,500 | 1,667,295 | |||||
American Homes 4 Rent | 86,000 | 1,804,280 | |||||
AvalonBay Communities Inc | 1,300 | 230,295 | |||||
Boston Properties Inc | 1,000 | 125,780 | |||||
Brixmor Property Group Inc | 13,600 | 332,112 | |||||
Care Capital Properties Inc | 4,400 | 110,000 | |||||
Communications Sales & Leasing Inc | 72,900 | 1,852,389 | |||||
CyrusOne Inc | 11,100 | 496,503 | |||||
DCT Industrial Trust Inc | 12,800 | 612,864 | |||||
Digital Realty Trust Inc# | 85,100 | 8,361,926 | |||||
Douglas Emmett Inc | 11,900 | 435,064 | |||||
Duke Realty Corp | 46,200 | 1,227,072 | |||||
Empire State Realty Trust Inc# | 50,100 | 1,011,519 | |||||
EPR Properties | 14,600 | 1,047,842 | |||||
Equinix Inc | 4,713 | 1,684,473 | |||||
Equity LifeStyle Properties Inc | 70,800 | 5,104,680 | |||||
Federal Realty Investment Trust | 1,300 | 184,743 | |||||
Gaming and Leisure Properties Inc | 12,800 | 391,936 | |||||
Healthcare Trust of America Inc | 44,100 | 1,283,751 | |||||
Hospitality Properties Trust | 3,700 | 117,438 | |||||
Iron Mountain Inc | 9,700 | 315,056 | |||||
Liberty Property Trust | 31,700 | 1,252,150 | |||||
Mid-America Apartment Communities Inc | 950 | 93,024 | |||||
National Retail Properties Inc | 27,000 | 1,193,400 | |||||
Piedmont Office Realty Trust Inc | 1,700 | 35,547 | |||||
Prologis Inc | 10,300 | 543,737 | |||||
Realty Income Corp | 56,600 | 3,253,368 | |||||
Senior Housing Properties Trust | 172,300 | 3,261,639 | |||||
SL Green Realty Corp | 1,300 | 139,815 | |||||
Spirit Realty Capital Inc | 37,500 | 407,250 | |||||
STORE Capital Corp | 29,500 | 728,945 | |||||
Sun Communities Inc | 12,700 | 972,947 | |||||
Ventas Inc | 5,500 | 343,860 | |||||
Welltower Inc# | 30,400 | 2,034,672 | |||||
43,413,056 | |||||||
Food & Staples Retailing 0.8% | |||||||
Casey's General Stores Inc | 800 | 95,104 | |||||
Costco Wholesale Corp | 3,700 | 592,407 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Food & Staples Retailing (continued) | |||||||
Sysco Corp | 60,200 | $3,333,274 | |||||
4,020,785 | |||||||
Food Products 5.5% | |||||||
Campbell Soup Co | 16,500 | 997,755 | |||||
Conagra Brands Inc | 20,100 | 794,955 | |||||
General Mills Inc | 264,200 | 16,319,634 | |||||
Ingredion Inc | 4,900 | 612,304 | |||||
JM Smucker Co | 7,700 | 986,062 | |||||
Kellogg Co | 35,300 | 2,601,963 | |||||
Kraft Heinz Co | 1,300 | 113,516 | |||||
Lamb Weston Holdings Inc | 3,933 | 148,864 | |||||
Pinnacle Foods Inc | 43,600 | 2,330,420 | |||||
Tyson Foods Inc | 55,300 | 3,410,904 | |||||
28,316,377 | |||||||
Gas Utilities 1.3% | |||||||
Atmos Energy Corp | 54,600 | 4,048,590 | |||||
National Fuel Gas Co | 10,100 | 572,064 | |||||
UGI Corp | 40,650 | 1,873,152 | |||||
6,493,806 | |||||||
Health Care Equipment & Supplies 5.4% | |||||||
ABIOMED Inc* | 31,000 | 3,493,080 | |||||
Align Technology Inc* | 13,100 | 1,259,303 | |||||
Baxter International Inc | 26,000 | 1,152,840 | |||||
Becton Dickinson and Co | 5,300 | 877,415 | |||||
Boston Scientific Corp* | 22,800 | 493,164 | |||||
Cooper Cos Inc | 9,400 | 1,644,342 | |||||
CR Bard Inc | 2,000 | 449,320 | |||||
DexCom Inc* | 8,900 | 531,330 | |||||
Edwards Lifesciences Corp* | 43,200 | 4,047,840 | |||||
Hill-Rom Holdings Inc | 24,300 | 1,364,202 | |||||
Hologic Inc* | 4,800 | 192,576 | |||||
IDEXX Laboratories Inc* | 12,900 | 1,512,783 | |||||
Intuitive Surgical Inc* | 2,500 | 1,585,425 | |||||
Medtronic PLC | 6,100 | 434,503 | |||||
ResMed Inc | 10,100 | 626,705 | |||||
Stryker Corp | 6,100 | 730,841 | |||||
Teleflex Inc | 21,500 | 3,464,725 | |||||
Varian Medical Systems Inc* | 17,100 | 1,535,238 | |||||
West Pharmaceutical Services Inc | 16,600 | 1,408,178 | |||||
Zimmer Biomet Holdings Inc | 13,700 | 1,413,840 | |||||
28,217,650 | |||||||
Health Care Providers & Services 1.7% | |||||||
AmerisourceBergen Corp | 22,000 | 1,720,180 | |||||
Anthem Inc | 5,200 | 747,604 | |||||
Centene Corp* | 4,100 | 231,691 | |||||
Laboratory Corp of America Holdings* | 1,000 | 128,380 | |||||
Quest Diagnostics Inc | 12,400 | 1,139,560 | |||||
UnitedHealth Group Inc | 16,800 | 2,688,672 | |||||
VCA Inc* | 5,800 | 398,170 | |||||
WellCare Health Plans Inc* | 14,400 | 1,973,952 | |||||
9,028,209 | |||||||
Health Care Technology 0.3% | |||||||
Veeva Systems Inc* | 42,200 | 1,717,540 | |||||
Hotels, Restaurants & Leisure 1.9% | |||||||
Aramark | 14,000 | 500,080 | |||||
Domino's Pizza Inc | 10,000 | 1,592,400 | |||||
Dunkin' Brands Group Inc | 39,900 | 2,092,356 | |||||
International Game Technology PLC | 28,200 | 719,664 | |||||
Las Vegas Sands Corp | 15,900 | 849,219 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Hotels, Restaurants & Leisure (continued) | |||||||
McDonald's Corp | 4,200 | $511,224 | |||||
MGM Resorts International* | 8,300 | 239,289 | |||||
Panera Bread Co* | 5,600 | 1,148,504 | |||||
Vail Resorts Inc | 6,700 | 1,080,777 | |||||
Wendy's Co | 63,600 | 859,872 | |||||
9,593,385 | |||||||
Household Durables 0.3% | |||||||
NVR Inc* | 900 | 1,502,100 | |||||
Household Products 1.5% | |||||||
Church & Dwight Co Inc | 9,900 | 437,481 | |||||
Clorox Co | 12,900 | 1,548,258 | |||||
Energizer Holdings Inc | 7,400 | 330,114 | |||||
Kimberly-Clark Corp | 24,600 | 2,807,352 | |||||
Procter & Gamble Co | 31,900 | 2,682,152 | |||||
Spectrum Brands Holdings Inc | 1,100 | 134,563 | |||||
7,939,920 | |||||||
Industrial Conglomerates 0% | |||||||
3M Co | 1,100 | 196,427 | |||||
Information Technology Services 1.8% | |||||||
Booz Allen Hamilton Holding Corp | 19,400 | 699,758 | |||||
Broadridge Financial Solutions Inc | 11,200 | 742,560 | |||||
Computer Sciences Corp | 20,900 | 1,241,878 | |||||
CSRA Inc | 7,100 | 226,064 | |||||
Jack Henry & Associates Inc | 27,300 | 2,423,694 | |||||
Leidos Holdings Inc | 43,700 | 2,234,818 | |||||
Mastercard Inc | 11,400 | 1,177,050 | |||||
Total System Services Inc | 5,400 | 264,762 | |||||
Visa Inc | 3,000 | 234,060 | |||||
9,244,644 | |||||||
Insurance 6.9% | |||||||
Aflac Inc | 10,900 | 758,640 | |||||
Allied World Assurance Co Holdings AG | 2,400 | 128,904 | |||||
American Financial Group Inc/OH | 17,400 | 1,533,288 | |||||
Aon PLC | 2,700 | 301,131 | |||||
Arch Capital Group Ltd* | 14,000 | 1,208,060 | |||||
Arthur J Gallagher & Co | 16,800 | 872,928 | |||||
Assurant Inc | 26,100 | 2,423,646 | |||||
Assured Guaranty Ltd | 20,600 | 778,062 | |||||
Axis Capital Holdings Ltd | 4,900 | 319,823 | |||||
Chubb Ltd | 2,351 | 310,614 | |||||
Cincinnati Financial Corp | 38,400 | 2,908,800 | |||||
Erie Indemnity Co | 9,000 | 1,012,050 | |||||
Everest Re Group Ltd | 14,400 | 3,116,160 | |||||
First American Financial Corp | 5,600 | 205,128 | |||||
FNF Group | 6,400 | 217,344 | |||||
Markel Corp* | 3,900 | 3,527,550 | |||||
Marsh & McLennan Cos Inc | 3,600 | 243,324 | |||||
MetLife Inc | 9,400 | 506,566 | |||||
Old Republic International Corp | 61,000 | 1,159,000 | |||||
Principal Financial Group Inc | 28,900 | 1,672,154 | |||||
ProAssurance Corp | 34,500 | 1,938,900 | |||||
Reinsurance Group of America Inc | 8,700 | 1,094,721 | |||||
RenaissanceRe Holdings Ltd | 21,700 | 2,955,974 | |||||
Torchmark Corp | 2,300 | 169,648 | |||||
Validus Holdings Ltd | 48,800 | 2,684,488 | |||||
White Mountains Insurance Group Ltd | 4,200 | 3,511,410 | |||||
35,558,313 | |||||||
Internet & Direct Marketing Retail 0.4% | |||||||
Amazon.com Inc* | 1,100 | 824,857 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Internet & Direct Marketing Retail (continued) | |||||||
Expedia Inc | 3,000 | $339,840 | |||||
Netflix Inc* | 5,400 | 668,520 | |||||
Priceline Group Inc* | 200 | 293,212 | |||||
2,126,429 | |||||||
Internet Software & Services 2.1% | |||||||
Akamai Technologies Inc* | 19,100 | 1,273,588 | |||||
Alphabet Inc - Class A* | 200 | 158,490 | |||||
Alphabet Inc - Class C* | 600 | 463,092 | |||||
eBay Inc* | 38,000 | 1,128,220 | |||||
Facebook Inc | 46,800 | 5,384,340 | |||||
Pandora Media Inc*,# | 112,600 | 1,468,304 | |||||
Yelp Inc* | 21,500 | 819,795 | |||||
Zillow Group Inc*,# | 6,100 | 222,467 | |||||
10,918,296 | |||||||
Leisure Products 0.1% | |||||||
Mattel Inc | 9,700 | 267,235 | |||||
Life Sciences Tools & Services 1.2% | |||||||
Illumina Inc* | 12,900 | 1,651,716 | |||||
Mettler-Toledo International Inc* | 1,000 | 418,560 | |||||
Quintiles IMS Holdings Inc* | 33,620 | 2,556,801 | |||||
Thermo Fisher Scientific Inc | 3,400 | 479,740 | |||||
Waters Corp* | 7,100 | 954,169 | |||||
6,060,986 | |||||||
Machinery 1.1% | |||||||
Cummins Inc | 2,800 | 382,676 | |||||
Donaldson Co Inc | 4,700 | 197,776 | |||||
IDEX Corp | 2,500 | 225,150 | |||||
Illinois Tool Works Inc | 3,800 | 465,348 | |||||
Oshkosh Corp | 7,900 | 510,419 | |||||
Toro Co | 33,600 | 1,879,920 | |||||
Trinity Industries Inc | 4,700 | 130,472 | |||||
Xylem Inc/NY | 43,500 | 2,154,120 | |||||
5,945,881 | |||||||
Media 1.0% | |||||||
Cable One Inc | 2,100 | 1,305,633 | |||||
Charter Communications Inc* | 5,643 | 1,624,733 | |||||
Cinemark Holdings Inc | 45,900 | 1,760,724 | |||||
Liberty Broadband Corp* | 3,000 | 222,210 | |||||
Live Nation Entertainment Inc* | 15,100 | 401,660 | |||||
5,314,960 | |||||||
Metals & Mining 2.4% | |||||||
Newmont Mining Corp | 313,500 | 10,680,945 | |||||
Royal Gold Inc | 30,800 | 1,951,180 | |||||
12,632,125 | |||||||
Mortgage Real Estate Investment Trusts (REITs) 1.8% | |||||||
AGNC Investment Corp | 114,800 | 2,081,324 | |||||
Annaly Capital Management Inc | 397,200 | 3,960,084 | |||||
Chimera Investment Corp | 83,600 | 1,422,872 | |||||
MFA Financial Inc | 103,600 | 790,468 | |||||
Starwood Property Trust Inc | 36,000 | 790,200 | |||||
Two Harbors Investment Corp | 22,800 | 198,816 | |||||
9,243,764 | |||||||
Multiline Retail 0.3% | |||||||
Nordstrom Inc# | 29,900 | 1,433,107 | |||||
Multi-Utilities 4.3% | |||||||
Ameren Corp | 48,200 | 2,528,572 | |||||
CenterPoint Energy Inc | 35,300 | 869,792 | |||||
CMS Energy Corp | 4,400 | 183,128 | |||||
Consolidated Edison Inc | 70,500 | 5,194,440 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
12 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Multi-Utilities (continued) | |||||||
Dominion Resources Inc/VA | 3,700 | $283,383 | |||||
DTE Energy Co | 14,000 | 1,379,140 | |||||
MDU Resources Group Inc | 37,800 | 1,087,506 | |||||
NiSource Inc | 175,300 | 3,881,142 | |||||
SCANA Corp | 41,400 | 3,033,792 | |||||
Vectren Corp | 800 | 41,720 | |||||
WEC Energy Group Inc | 64,176 | 3,763,922 | |||||
22,246,537 | |||||||
Oil, Gas & Consumable Fuels 3.9% | |||||||
Cheniere Energy Inc* | 3,000 | 124,290 | |||||
Cimarex Energy Co | 5,900 | 801,810 | |||||
Continental Resources Inc/OK*,# | 27,100 | 1,396,734 | |||||
Devon Energy Corp | 1,300 | 59,371 | |||||
Energen Corp* | 800 | 46,136 | |||||
EOG Resources Inc | 2,900 | 293,190 | |||||
ONEOK Inc | 44,300 | 2,543,263 | |||||
Parsley Energy Inc* | 67,200 | 2,368,128 | |||||
Pioneer Natural Resources Co | 3,000 | 540,210 | |||||
Range Resources Corp | 15,100 | 518,836 | |||||
Rice Energy Inc* | 96,100 | 2,051,735 | |||||
Southwestern Energy Co* | 181,300 | 1,961,666 | |||||
Spectra Energy Corp | 82,600 | 3,394,034 | |||||
Valero Energy Corp | 8,700 | 594,384 | |||||
Williams Cos Inc | 37,400 | 1,164,636 | |||||
WPX Energy Inc* | 148,700 | 2,166,559 | |||||
20,024,982 | |||||||
Personal Products 0.2% | |||||||
Nu Skin Enterprises Inc | 26,400 | 1,261,392 | |||||
Pharmaceuticals 0.4% | |||||||
Eli Lilly & Co | 8,200 | 603,110 | |||||
Johnson & Johnson | 4,800 | 553,008 | |||||
Merck & Co Inc | 2,700 | 158,949 | |||||
Pfizer Inc | 3,800 | 123,424 | |||||
Zoetis Inc | 9,800 | 524,594 | |||||
1,963,085 | |||||||
Professional Services 0.3% | |||||||
Dun & Bradstreet Corp | 7,000 | 849,240 | |||||
Equifax Inc | 4,100 | 484,743 | |||||
1,333,983 | |||||||
Road & Rail 0.7% | |||||||
CSX Corp | 13,900 | 499,427 | |||||
Landstar System Inc | 7,100 | 605,630 | |||||
Norfolk Southern Corp | 3,100 | 335,017 | |||||
Old Dominion Freight Line Inc* | 10,600 | 909,374 | |||||
Union Pacific Corp | 10,500 | 1,088,640 | |||||
3,438,088 | |||||||
Semiconductor & Semiconductor Equipment 3.9% | |||||||
Applied Materials Inc | 28,100 | 906,787 | |||||
Intel Corp | 27,900 | 1,011,933 | |||||
KLA-Tencor Corp | 8,800 | 692,384 | |||||
Lam Research Corp | 3,100 | 327,763 | |||||
Marvell Technology Group Ltd | 73,900 | 1,024,993 | |||||
Microchip Technology Inc | 9,400 | 603,010 | |||||
Micron Technology Inc* | 186,100 | 4,079,312 | |||||
NVIDIA Corp | 76,200 | 8,133,588 | |||||
QUALCOMM Inc | 15,800 | 1,030,160 | |||||
Teradyne Inc | 42,000 | 1,066,800 | |||||
Texas Instruments Inc | 7,700 | 561,869 |
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, 2016
| Value | ||||||
Common Stocks (continued) | |||||||
Semiconductor & Semiconductor Equipment (continued) | |||||||
Xilinx Inc | 14,000 | $845,180 | |||||
20,283,779 | |||||||
Software 3.1% | |||||||
Activision Blizzard Inc | 26,900 | 971,359 | |||||
Cadence Design Systems Inc* | 4,600 | 116,012 | |||||
Dell Technologies Inc Class V* | 51,700 | 2,841,949 | |||||
Electronic Arts Inc* | 15,300 | 1,205,028 | |||||
Microsoft Corp | 6,700 | 416,338 | |||||
PTC Inc* | 32,800 | 1,517,656 | |||||
Symantec Corp | 146,100 | 3,490,329 | |||||
Synopsys Inc* | 15,000 | 882,900 | |||||
Tyler Technologies Inc* | 5,700 | 813,789 | |||||
VMware Inc*,# | 48,800 | 3,842,024 | |||||
16,097,384 | |||||||
Specialty Retail 2.7% | |||||||
Burlington Stores Inc* | 21,300 | 1,805,175 | |||||
CST Brands Inc | 7,200 | 346,680 | |||||
Dick's Sporting Goods Inc | 38,000 | 2,017,800 | |||||
Foot Locker Inc | 9,900 | 701,811 | |||||
Gap Inc | 24,200 | 543,048 | |||||
Murphy USA Inc* | 15,100 | 928,197 | |||||
O'Reilly Automotive Inc* | 2,400 | 668,184 | |||||
Ross Stores Inc | 13,100 | 859,360 | |||||
Ulta Salon Cosmetics & Fragrance Inc* | 23,700 | 6,042,078 | |||||
13,912,333 | |||||||
Technology Hardware, Storage & Peripherals 0.8% | |||||||
Apple Inc | 14,200 | 1,644,644 | |||||
Hewlett Packard Enterprise Co | 11,400 | 263,796 | |||||
NetApp Inc | 54,600 | 1,925,742 | |||||
Western Digital Corp | 6,800 | 462,060 | |||||
4,296,242 | |||||||
Tobacco 5.2% | |||||||
Altria Group Inc | 192,400 | 13,010,088 | |||||
Reynolds American Inc | 248,612 | 13,928,229 | |||||
26,938,317 | |||||||
Transportation Infrastructure 0.1% | |||||||
Macquarie Infrastructure Corp | 6,700 | 547,390 | |||||
Water Utilities 1.8% | |||||||
American Water Works Co Inc | 117,600 | 8,509,536 | |||||
Aqua America Inc | 30,000 | 901,200 | |||||
9,410,736 | |||||||
Wireless Telecommunication Services 1.3% | |||||||
Sprint Corp*,# | 562,400 | 4,735,408 | |||||
T-Mobile US Inc* | 30,100 | 1,731,051 | |||||
6,466,459 | |||||||
Total Common Stocks (cost $471,256,030) | 514,735,156 | ||||||
Investment Companies 4.3% | |||||||
Investments Purchased with Cash Collateral from Securities Lending 3.9% | |||||||
Janus Cash Collateral Fund LLC, 0.4311%ºº,£ | 20,288,377 | 20,288,377 | |||||
Money Markets 0.4% | |||||||
Janus Cash Liquidity Fund LLC, 0.4708%ºº,£ | 1,924,896 | 1,924,896 | |||||
Total Investment Companies (cost $22,213,273) | 22,213,273 | ||||||
Total Investments (total cost $493,469,303) 103.6% | 536,948,429 | ||||||
Liabilities, net of Cash, Receivables and Other Assets (3.6)% | (18,523,519) | ||||||
Net Assets 100% | $518,424,910 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
14 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2016
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
% of | |||||
Investment | |||||
Country | Value | Securities | |||
United States | $536,228,765 | 99.9 | % | ||
Italy | 719,664 | 0.1 |
Total | $536,948,429 | 100.0 | % |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 15 |
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. |
LLC | Limited Liability Company |
PLC | Public Limited Company |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of December 31, 2016. |
# | Loaned security; a portion of the security is on loan at December 31, 2016. |
£ | 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, 2016. Unless otherwise indicated, all information in the table is for the period ended December 31, 2016. |
Share | Share | ||||||||||||||
Balance | Balance | Realized | Dividend | Value | |||||||||||
at 6/30/16 | Purchases | Sales | at 12/31/16 | Gain/(Loss) | Income | at 12/31/16 | |||||||||
Janus Cash Collateral Fund LLC | 17,472,940 | 106,593,075 | (103,777,638) | 20,288,377 | $ | $45,406(1) | $20,288,377 | ||||||||
Janus Cash Liquidity Fund LLC | 12,141,471 | 88,164,425 | (98,381,000) | 1,924,896 | | 15,182 | 1,924,896 | ||||||||
Total | $ | $60,588 | $22,213,273 | ||||||||||||
(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 Funds investments in securities and other financial instruments as of December 31, 2016. See Notes to Financial Statements for more information. | ||||||||||||
Valuation Inputs Summary | ||||||||||||
Level 2 - | Level 3 - | |||||||||||
Level 1 - | Other Significant | Significant | ||||||||||
Quotes Prices | Observable Inputs | Unobservable Inputs | ||||||||||
Assets | ||||||||||||
Investments in Securities: | ||||||||||||
Common Stocks | $ | 514,735,156 | $ | - | $ | - | ||||||
Investment Companies | - | 22,213,273 | - | |||||||||
Total Assets | $ | 514,735,156 | $ | 22,213,273 | $ | - | ||||||
16 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2016
See footnotes at the end of the Statement. |
|
|
|
|
|
|
|
Assets: | ||||||
Investments, at cost | $ | 493,469,303 | ||||
Unaffiliated investments, at value(1) | 514,735,156 | |||||
Affiliated investments, at value | 22,213,273 | |||||
Cash | 72,847 | |||||
Non-interested Trustees' deferred compensation | 9,648 | |||||
Receivables: | ||||||
Investments sold | 2,109,667 | |||||
Dividends | 1,414,969 | |||||
Fund shares sold | 1,411,078 | |||||
Dividends from affiliates | 801 | |||||
Other assets | 6,346 | |||||
Total Assets |
|
| 541,973,785 |
| ||
Liabilities: | ||||||
Collateral for securities loaned (Note 2) | 20,288,377 | |||||
Payables: | | |||||
Fund shares repurchased | 2,845,455 | |||||
Advisory fees | 237,045 | |||||
Transfer agent fees and expenses | 70,776 | |||||
12b-1 Distribution and shareholder servicing fees | 31,443 | |||||
Professional fees | 19,643 | |||||
Non-interested Trustees' deferred compensation fees | 9,648 | |||||
Fund administration fees | 4,504 | |||||
Non-interested Trustees' fees and expenses | 3,958 | |||||
Custodian fees | 315 | |||||
Accrued expenses and other payables | 37,711 | |||||
Total Liabilities |
|
| 23,548,875 |
| ||
Net Assets |
| $ | 518,424,910 |
|
See Notes to Financial Statements. | |
Janus Investment Fund | 17 |
INTECH U.S. Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2016
|
|
|
|
|
|
|
Net Assets Consist of: | ||||||
Capital (par value and paid-in surplus) | $ | 534,742,494 | ||||
Undistributed net investment income/(loss) | 1,453,044 | |||||
Undistributed net realized gain/(loss) from investments | (61,250,244) | |||||
Unrealized net appreciation/(depreciation) of investments and non-interested Trustees deferred compensation | 43,479,616 | |||||
Total Net Assets |
| $ | 518,424,910 |
| ||
Net Assets - Class A Shares | $ | 39,757,081 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 4,110,477 | |||||
Net Asset Value Per Share(2) |
| $ | 9.67 |
| ||
Maximum Offering Price Per Share(3) |
| $ | 10.26 |
| ||
Net Assets - Class C Shares | $ | 24,336,178 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,577,632 | |||||
Net Asset Value Per Share(2) |
| $ | 9.44 |
| ||
Net Assets - Class D Shares | $ | 19,710,395 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,062,508 | |||||
Net Asset Value Per Share |
| $ | 9.56 |
| ||
Net Assets - Class I Shares | $ | 200,981,408 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 20,796,715 | |||||
Net Asset Value Per Share |
| $ | 9.66 |
| ||
Net Assets - Class N Shares | $ | 69,849,856 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 7,253,395 | |||||
Net Asset Value Per Share |
| $ | 9.63 |
| ||
Net Assets - Class S Shares | $ | 3,454,679 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 357,667 | |||||
Net Asset Value Per Share |
| $ | 9.66 |
| ||
Net Assets - Class T Shares | $ | 160,335,313 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 16,779,729 | |||||
Net Asset Value Per Share |
| $ | 9.56 |
|
(1) Includes $19,842,659 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. | |
18 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Statement of Operations (unaudited)
For the period ended December 31, 2016
|
|
|
|
|
|
Investment Income: | |||||
| Dividends | $ | 6,497,650 | ||
Affiliated securities lending income, net | 45,406 | ||||
Dividends from affiliates | 15,182 | ||||
Other income | 142 | ||||
Foreign tax withheld | (1,842) | ||||
Total Investment Income |
| 6,556,538 |
| ||
Expenses: | |||||
Advisory fees | 1,307,602 | ||||
12b-1Distribution and shareholder servicing fees: | |||||
Class A Shares | 46,700 | ||||
Class C Shares | 111,072 | ||||
Class S Shares | 4,437 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 12,398 | ||||
Class S Shares | 4,437 | ||||
Class T Shares | 209,484 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 15,531 | ||||
Class C Shares | 12,953 | ||||
Class I Shares | 76,925 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 1,856 | ||||
Class C Shares | 1,337 | ||||
Class D Shares | 3,192 | ||||
Class I Shares | 4,418 | ||||
Class N Shares | 1,095 | ||||
Class S Shares | 12 | ||||
Class T Shares | 933 | ||||
Registration fees | 99,596 | ||||
Fund administration fees | 24,844 | ||||
Professional fees | 20,409 | ||||
Shareholder reports expense | 18,227 | ||||
Non-interested Trustees fees and expenses | 9,498 | ||||
Custodian fees | 3,083 | ||||
Other expenses | 12,173 | ||||
Total Expenses |
| 2,002,212 |
| ||
Less: Excess Expense Reimbursement |
| (1,982) |
| ||
Net Expenses |
| 2,000,230 |
| ||
Net Investment Income/(Loss) |
| 4,556,308 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments | 8,005,158 | ||||
Total Net Realized Gain/(Loss) on Investments |
| 8,005,158 |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments and non-interested Trustees deferred compensation | (16,381,336) | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| (16,381,336) |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (3,819,870) |
| ||
See Notes to Financial Statements. | |
Janus Investment Fund | 19 |
INTECH U.S. Managed Volatility Fund
Statements of Changes in Net Assets
|
|
| Period
ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 4,556,308 | $ | 4,248,019 | ||||
Net realized gain/(loss) on investments | 8,005,158 | (2,263,117) | ||||||
Change in unrealized net appreciation/depreciation | (16,381,336) | 36,113,333 | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| (3,819,870) |
|
| 38,098,235 | |||
Dividends and Distributions to Shareholders: | ||||||||
Dividends from Net Investment Income | ||||||||
Class A Shares | (504,735) | (47,144) | ||||||
Class C Shares | (177,214) | (13,428) | ||||||
Class D Shares | (271,368) | (19,296) | ||||||
Class I Shares | (2,968,251) | (312,277) | ||||||
Class N Shares | (1,064,592) | (327,842) | ||||||
Class S Shares | (35,815) | (19,003) | ||||||
Class T Shares | (2,166,066) | (345,943) | ||||||
Net Decrease from Dividends and Distributions to Shareholders |
| (7,188,041) |
|
| (1,084,933) | |||
Capital Share Transactions: | ||||||||
Class A Shares | 9,775,306 | 19,483,451 | ||||||
Class C Shares | 6,641,068 | 12,536,104 | ||||||
Class D Shares | 5,314,730 | 10,563,795 | ||||||
Class I Shares | 33,428,846 | 55,642,917 | ||||||
Class N Shares | (3,674,073) | (6,239,964) | ||||||
Class S Shares | 28,501 | (9,729,745) | ||||||
Class T Shares | 20,915,772 | 50,147,523 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| 72,430,150 |
|
| 132,404,081 | |||
Net Increase/(Decrease) in Net Assets |
| 61,422,239 |
|
| 169,417,383 | |||
Net Assets: | ||||||||
Beginning of period | 457,002,671 | 287,585,288 | ||||||
| End of period | $ | 518,424,910 |
| $ | 457,002,671 | ||
Undistributed Net Investment Income/(Loss) | $ | 1,453,044 |
| $ | 4,084,777 |
See Notes to Financial Statements. | |
20 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Financial Highlights
Class A Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 | |||||
Net Asset Value, Beginning of Period |
| $9.87 |
|
| $9.04 |
|
| $13.16 |
|
| $12.45 |
|
| $10.15 |
|
| $10.03 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.08(1) | 0.11(1) | 0.12(1) | 0.12(1) | 0.16 | 0.15 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.16) | 0.75 | 0.38 | 2.78 | 2.33 | 0.11 | |||||||||||||||
Total from Investment Operations |
| (0.08) |
|
| 0.86 |
|
| 0.50 |
|
| 2.90 |
|
| 2.49 |
|
| 0.26 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.12) | (0.03) | (0.14) | (0.11) | (0.19) | (0.14) | |||||||||||||||
Distributions (from capital gains) | | | (4.48) | (2.08) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.12) |
|
| (0.03) |
|
| (4.62) |
|
| (2.19) |
|
| (0.19) |
|
| (0.14) |
| |||
Net Asset Value, End of Period | $9.67 | $9.87 | $9.04 | $13.16 | $12.45 | $10.15 | |||||||||||||||
Total Return* |
| (0.77)% |
|
| 9.54% |
|
| 4.04% |
|
| 24.98% |
|
| 24.86% |
|
| 2.71% |
| |||
Net Assets, End of Period (in thousands) | $39,757 | $30,628 | $8,845 | $1,424 | $7,348 | $5,494 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $36,625 | $16,493 | $2,962 | $8,530 | $6,373 | $5,099 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.93% | 0.93% | 1.03% | 1.03% | 0.97% | 0.92% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.93% | 0.93% | 1.03% | 1.01% | 0.97% | 0.92% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.61% | 1.22% | 1.17% | 0.91% | 1.37% | 1.54% | |||||||||||||||
Portfolio Turnover Rate | 47% | 72% | 107% | 150% | 100% | 100% | |||||||||||||||
1 |
Class C Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
| ||||
Net Asset Value, Beginning of Period |
| $9.62 |
|
| $8.85 |
|
| $13.09 |
|
| $12.43 |
|
| $10.14 |
|
| $9.94 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.04(1) | 0.05(1) | 0.04(1) | 0.04(1) | (0.08) | 0.18 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.15) | 0.73 | 0.37 | 2.77 | 2.49 | 0.02 | |||||||||||||||
Total from Investment Operations |
| (0.11) |
|
| 0.78 |
|
| 0.41 |
|
| 2.81 |
|
| 2.41 |
|
| 0.20 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.07) | (0.01) | (0.17) | (0.07) | (0.12) | | |||||||||||||||
Distributions (from capital gains) | | | (4.48) | (2.08) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.07) |
|
| (0.01) |
|
| (4.65) |
|
| (2.15) |
|
| (0.12) |
|
| |
| |||
Net Asset Value, End of Period | $9.44 | $9.62 | $8.85 | $13.09 | $12.43 | $10.14 | |||||||||||||||
Total Return* |
| (1.15)% |
|
| 8.87% |
|
| 3.26% |
|
| 24.20% |
|
| 23.97% |
|
| 2.01% |
| |||
Net Assets, End of Period (in thousands) | $24,336 | $18,116 | $4,330 | $861 | $380 | $147 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $22,188 | $9,583 | $1,567 | $643 | $206 | $164 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.70% | 1.61% | 1.73% | 1.67% | 1.69% | 1.72% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.70% | 1.61% | 1.73% | 1.67% | 1.69% | 1.61% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.86% | 0.58% | 0.41% | 0.31% | 0.57% | 0.81% | |||||||||||||||
Portfolio Turnover Rate | 47% | 72% | 107% | 150% | 100% | 100% | |||||||||||||||
* 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 | 21 |
INTECH U.S. Managed Volatility Fund
Financial Highlights
Class D Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and the year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $9.75 |
|
| $8.93 |
|
| $10.10 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.09 | 0.12 | 0.03 | |||||||||
Net realized and unrealized gain/(loss) | (0.15) | 0.73 | 0.16 | |||||||||
Total from Investment Operations |
| (0.06) |
|
| 0.85 |
|
| 0.19 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.13) | (0.03) | | |||||||||
Distributions (from capital gains) | | | (1.36) | |||||||||
Total Dividends and Distributions |
| (0.13) |
|
| (0.03) |
|
| (1.36) |
| |||
Net Asset Value, End of Period | $9.56 | $9.75 | $8.93 | |||||||||
Total Return* |
| (0.58)% |
|
| 9.55% |
|
| 1.50% |
| |||
Net Assets, End of Period (in thousands) | $19,710 | $14,953 | $3,322 | |||||||||
Average Net Assets for the Period (in thousands) | $20,279 | $7,109 | $2,101 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.76% | 0.83% | 1.21% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.76% | 0.83% | 1.11% | |||||||||
Ratio of Net Investment Income/(Loss) | 1.78% | 1.30% | 0.66% | |||||||||
Portfolio Turnover Rate | 47% | 72% | 107% | |||||||||
Class I Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
| ||||
Net Asset Value, Beginning of Period |
| $9.86 |
|
| $9.02 |
|
| $13.25 |
|
| $12.51 |
|
| $10.19 |
|
| $10.07 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.09(2) | 0.13(2) | 0.16(2) | 0.17(2) | 0.22 | 0.17 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.15) | 0.75 | 0.38 | 2.80 | 2.32 | 0.12 | |||||||||||||||
Total from Investment Operations |
| (0.06) |
|
| 0.88 |
|
| 0.54 |
|
| 2.97 |
|
| 2.54 |
|
| 0.29 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.14) | (0.04) | (0.29) | (0.15) | (0.22) | (0.17) | |||||||||||||||
Distributions (from capital gains) | | | (4.48) | (2.08) | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | N/A | (3) | |||||||||||||||
Total Dividends and Distributions |
| (0.14) |
|
| (0.04) |
|
| (4.77) |
|
| (2.23) |
|
| (0.22) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $9.66 | $9.86 | $9.02 | $13.25 | $12.51 | $10.19 | |||||||||||||||
Total Return* |
| (0.58)% |
|
| 9.78% |
|
| 4.35% |
|
| 25.48% |
|
| 25.23% |
|
| 2.96% |
| |||
Net Assets, End of Period (in thousands) | $200,981 | $171,556 | $101,060 | $104,039 | $77,625 | $93,800 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $194,056 | $101,772 | $61,707 | $86,864 | $93,335 | $89,976 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.66% | 0.65% | 0.71% | 0.66% | 0.67% | 0.67% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.66% | 0.65% | 0.71% | 0.66% | 0.67% | 0.67% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.88% | 1.42% | 1.36% | 1.32% | 1.71% | 1.78% | |||||||||||||||
Portfolio Turnover Rate | 47% | 72% | 107% | 150% | 100% | 100% | |||||||||||||||
* 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. | |
22 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Financial Highlights
Class N Shares | ||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and the year or period ended June 30 | 2016 |
|
| 2016 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $9.83 |
|
| $8.99 |
|
| $13.03 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||
Net investment income/(loss)(2) | 0.09 | 0.14 | 0.11 | |||||||||
Net realized and unrealized gain/(loss) | (0.14) | 0.74 | 0.66 | |||||||||
Total from Investment Operations |
| (0.05) |
|
| 0.88 |
|
| 0.77 |
| |||
Less Dividends and Distributions: | ||||||||||||
Dividends (from net investment income) | (0.15) | (0.04) | (0.33) | |||||||||
Distributions (from capital gains) | | | (4.48) | |||||||||
Total Dividends and Distributions |
| (0.15) |
|
| (0.04) |
|
| (4.81) |
| |||
Net Asset Value, End of Period | $9.63 | $9.83 | $8.99 | |||||||||
Total Return* |
| (0.53)% |
|
| 9.85% |
|
| 6.22% |
| |||
Net Assets, End of Period (in thousands) | $69,850 | $75,067 | $74,862 | |||||||||
Average Net Assets for the Period (in thousands) | $72,001 | $72,242 | $53,040 | |||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.58% | 0.61% | 0.72% | |||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.58% | 0.61% | 0.72% | |||||||||
Ratio of Net Investment Income/(Loss) | 1.93% | 1.49% | 1.56% | |||||||||
Portfolio Turnover Rate | 47% | 72% | 107% | |||||||||
Class S Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
| ||||
Net Asset Value, Beginning of Period |
| $9.83 |
|
| $9.01 |
|
| $13.27 |
|
| $12.53 |
|
| $10.15 |
|
| $10.02 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.07(2) | 0.08(2) | 0.11(2) | 0.11(2) | 0.90 | 0.13 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.14) | 0.75 | 0.39 | 2.82 | 1.63 | 0.11 | |||||||||||||||
Total from Investment Operations |
| (0.07) |
|
| 0.83 |
|
| 0.50 |
|
| 2.93 |
|
| 2.53 |
|
| 0.24 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.10) | (0.01) | (0.28) | (0.11) | (0.15) | (0.11) | |||||||||||||||
Distributions (from capital gains) | | | (4.48) | (2.08) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.10) |
|
| (0.01) |
|
| (4.76) |
|
| (2.19) |
|
| (0.15) |
|
| (0.11) |
| |||
Net Asset Value, End of Period | $9.66 | $9.83 | $9.01 | $13.27 | $12.53 | $10.15 | |||||||||||||||
Total Return* |
| (0.71)% |
|
| 9.27% |
|
| 3.99% |
|
| 25.01% |
|
| 25.12% |
|
| 2.48% |
| |||
Net Assets, End of Period (in thousands) | $3,455 | $3,490 | $12,967 | $64 | $64 | $221 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $3,482 | $8,378 | $2,892 | $63 | $132 | $208 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.08% | 1.12% | 1.20% | 1.23% | 1.16% | 1.15% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.05% | 1.07% | 1.18% | 1.08% | 0.97% | 1.09% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.47% | 0.88% | 1.20% | 0.88% | 1.41% | 1.36% | |||||||||||||||
Portfolio Turnover Rate | 47% | 72% | 107% | 150% | 100% | 100% | |||||||||||||||
* 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. | |
Janus Investment Fund | 23 |
INTECH U.S. Managed Volatility Fund
Financial Highlights
Class T Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2016 (unaudited) and each year ended June 30 | 2016 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 | |||||
Net Asset Value, Beginning of Period |
| $9.75 |
|
| $8.93 |
|
| $13.19 |
|
| $12.48 |
|
| $10.18 |
|
| $10.05 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.08(1) | 0.11(1) | 0.13(1) | 0.14(1) | 0.19 | 0.13 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.14) | 0.74 | 0.38 | 2.80 | 2.31 | 0.13 | |||||||||||||||
Total from Investment Operations |
| (0.06) |
|
| 0.85 |
|
| 0.51 |
|
| 2.94 |
|
| 2.50 |
|
| 0.26 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.13) | (0.03) | (0.29) | (0.15) | (0.20) | (0.13) | |||||||||||||||
Distributions (from capital gains) | | | (4.48) | (2.08) | | | |||||||||||||||
Total Dividends and Distributions |
| (0.13) |
|
| (0.03) |
|
| (4.77) |
|
| (2.23) |
|
| (0.20) |
|
| (0.13) |
| |||
Net Asset Value, End of Period | $9.56 | $9.75 | $8.93 | $13.19 | $12.48 | $10.18 | |||||||||||||||
Total Return* |
| (0.64)% |
|
| 9.55% |
|
| 4.19% |
|
| 25.27% |
|
| 24.84% |
|
| 2.73% |
| |||
Net Assets, End of Period (in thousands) | $160,335 | $143,193 | $82,199 | $18,659 | $479 | $58 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $164,456 | $102,987 | $31,644 | $9,758 | $205 | $36 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.83% | 0.86% | 0.95% | 0.90% | 0.91% | 0.89% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.83% | 0.85% | 0.95% | 0.90% | 0.89% | 0.89% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.71% | 1.26% | 1.27% | 1.09% | 1.28% | 1.54% | |||||||||||||||
Portfolio Turnover Rate | 47% | 72% | 107% | 150% | 100% | 100% | |||||||||||||||
* 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. | |
24 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 seeks long-term growth of capital. 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 D Shares are closed to certain new investors.
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
Janus Investment Fund | 25 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
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, 2016 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
26 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
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. 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 the 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 Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (REITs) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the 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
Janus Investment Fund | 27 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
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. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU (known as Brexit). One or more other countries may also 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.
28 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
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.
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 in accordance with the Agency Securities Lending and Repurchase Agreement. For financial reporting purposes, the Fund does not offset financial instruments payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the 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.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets | |||||||||
Gross Amounts | |||||||||
of Recognized | Offsetting Asset | Collateral | |||||||
Counterparty | Assets | or Liability(a) | Pledged(b) | Net Amount | |||||
Deutsche Bank AG | $ | 19,842,659 | $ | | $ | (19,842,659) | $ | | |
(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. |
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
Janus Investment Fund | 29 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
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 (if applicable). Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as Affiliated securities lending income, net on the Statement of Operations. As of December 31, 2016, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $19,842,659 for equity securities. Gross amounts of recognized liabilities for securities lending (collateral received) as of December 31, 2016 is $20,288,377, resulting in the net amount due to the counterparty of $445,718.
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% of its average daily net assets.
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 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% of the Funds average daily net assets. Janus Capital has agreed to continue the waiver until at least November 1, 2017. 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.
30 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
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, 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). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the
Janus Investment Fund | 31 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
Trust. The Fund also pays for some or all of 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. Some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $329,069 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2016. 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, 2016 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, 2016 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 $181,750 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2016.
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, 2016 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, 2016, Janus Distributors retained upfront sales charges of $14,159.
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, 2016.
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, 2016, redeeming shareholders of Class C Shares paid CDSCs of $2,947.
32 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
As of December 31, 2016, 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 | 93 | 13 | ||||
Class S Shares | 2 | -* | ||||
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.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2016, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
Capital Loss Carryover Schedule | |||||
For the year ended June 30, 2016 | |||||
No Expiration | |||||
June 30, 2018 | Short-Term | Long-Term | Accumulated | ||
$ (65,625,412) | $(3,508,365) | $ - | $ (69,133,777) |
Janus Investment Fund | 33 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2016 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/ |
$ 493,486,658 | $52,032,499 | $ (8,570,728) | $ 43,461,771 |
5. Capital Share Transactions
Period ended December 31, 2016 | Year ended June 30, 2016 | |||||
Shares | Amount | Shares | Amount | |||
Class A Shares: | ||||||
Shares sold | 2,172,515 | $21,022,921 | 3,018,526 | $ 27,622,020 | ||
Reinvested dividends and distributions | 49,834 | 483,389 | 4,109 | 37,020 | ||
Shares repurchased | (1,216,597) | (11,731,004) | (895,968) | (8,175,589) | ||
Net Increase/(Decrease) | 1,005,752 | $ 9,775,306 |
| 2,126,667 | $ 19,483,451 | |
Class C Shares: | ||||||
Shares sold | 880,907 | $ 8,397,369 | 1,935,657 | $ 17,364,828 | ||
Reinvested dividends and distributions | 15,895 | 150,528 | 1,156 | 10,194 | ||
Shares repurchased | (203,286) | (1,906,829) | (541,892) | (4,838,918) | ||
Net Increase/(Decrease) | 693,516 | $ 6,641,068 |
| 1,394,921 | $ 12,536,104 | |
Class D Shares: | ||||||
Shares sold | 1,296,351 | $12,621,079 | 1,460,738 | $ 13,288,703 | ||
Reinvested dividends and distributions | 28,091 | 269,394 | 2,165 | 19,268 | ||
Shares repurchased | (795,363) | (7,575,743) | (301,352) | (2,744,176) | ||
Net Increase/(Decrease) | 529,079 | $ 5,314,730 |
| 1,161,551 | $ 10,563,795 | |
Class I Shares: | ||||||
Shares sold | 5,993,759 | $58,440,352 | 12,418,318 | $112,907,159 | ||
Reinvested dividends and distributions | 245,589 | 2,379,762 | 21,185 | 190,664 | ||
Shares repurchased | (2,836,158) | (27,391,268) | (6,244,669) | (57,454,906) | ||
Net Increase/(Decrease) | 3,403,190 | $33,428,846 |
| 6,194,834 | $ 55,642,917 | |
Class N Shares: | ||||||
Shares sold | 113,368 | $ 1,096,594 | 350,259 | $ 3,168,445 | ||
Reinvested dividends and distributions | 110,206 | 1,064,592 | 36,589 | 327,842 | ||
Shares repurchased | (606,692) | (5,835,259) | (1,073,955) | (9,736,251) | ||
Net Increase/(Decrease) | (383,118) | $ (3,674,073) |
| (687,107) | $ (6,239,964) | |
Class S Shares: | ||||||
Shares sold | 30,832 | $ 299,750 | 77,678 | $ 708,075 | ||
Reinvested dividends and distributions | 3,676 | 35,623 | 2,113 | 18,977 | ||
Shares repurchased | (31,699) | (306,872) | (1,164,877) | (10,456,797) | ||
Net Increase/(Decrease) | 2,809 | $ 28,501 |
| (1,085,086) | $ (9,729,745) | |
Class T Shares: | ||||||
Shares sold | 6,228,154 | $60,358,316 | 11,014,761 | $ 99,380,114 | ||
Reinvested dividends and distributions | 225,081 | 2,158,527 | 38,718 | 344,588 | ||
Shares repurchased | (4,365,116) | (41,601,071) | (5,568,486) | (49,577,179) | ||
Net Increase/(Decrease) | 2,088,119 | $20,915,772 |
| 5,484,993 | $ 50,147,523 |
34 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
6. Purchases and Sales of Investment Securities
For the period ended December 31, 2016, 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 |
$310,866,892 | $ 237,101,851 | $ - | $ - |
7. Merger Related Matters
On October 3, 2016, Janus Capital Group Inc. (JCGI), the direct parent of Janus Capital Management LLC, the investment adviser to the Fund (Janus Capital), and Henderson Group plc (Henderson) announced that they had entered into an Agreement and Plan of Merger (Merger Agreement) relating to the strategic combination of Henderson and JCGI (the Transaction). Pursuant to the Merger Agreement, a newly formed, direct wholly-owned subsidiary of Henderson will merge with and into JCGI, with JCGI as the surviving corporation and a direct wholly-owned subsidiary of Henderson. The Transaction is currently expected to close in the second quarter of 2017, subject to requisite shareholder and regulatory approvals.
The consummation of the Transaction may be deemed to be an assignment (as defined in the Investment Company Act of 1940, as amended) of the current advisory agreement between Janus Capital and the Fund. In addition, the consummation of the Transaction may be deemed to be an assignment of the current sub-advisory agreements between Janus Capital and each of INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins), the subadvisers to certain funds. As a result, the consummation of the Transaction may cause such investment advisory agreements and investment sub-advisory agreements to terminate automatically in accordance with their respective terms.
On December 8, 2016, the Board of Trustees of the Fund (the Board of Trustees) approved, subject to approval of shareholders, a new investment advisory agreement between the Fund and Janus Capital in order to permit Janus Capital to continue to provide advisory services to the Fund following the closing of the Transaction. The new investment advisory agreement will have substantially similar terms as the corresponding current investment advisory agreement.
On December 8, 2016, the Board of Trustees approved, subject to approval of shareholders, a new investment sub-advisory agreement between Janus Capital and INTECH in order to permit INTECH to continue to provide sub-advisory services with respect to the Fund following the closing of the Transaction. The new investment sub-advisory agreement will have substantially similar terms as the corresponding current investment sub-advisory agreement.
On December 8, 2016, the Board of Trustees also approved interim investment advisory agreements between the Fund and Janus Capital and interim sub-advisory agreements between Janus Capital and the Funds subadviser, as applicable. In the event shareholders of the Fund do not approve the new investment advisory agreement (and, if applicable, the new investment sub-advisory agreement) prior to the closing of the Transaction, an interim investment advisory agreement (and, if applicable, an interim investment sub-advisory agreement) will take effect with respect to the Fund upon the closing of the Transaction. Such interim agreements will continue in effect for a term ending on the earlier of 150 days from the closing of the Transaction, or when shareholders of the Fund approve the new investment advisory agreement and new investment sub-advisory agreement, if applicable. Compensation earned by Janus Capital and the Funds subadviser, if applicable, under their respective interim investment advisory agreement or interim investment sub-advisory agreement will be held in an interest-bearing escrow account and will be paid to Janus Capital or the subadviser, as applicable, if shareholders approve the corresponding new investment advisory agreement or new investment sub-advisory agreement prior to the end of the interim period. Except for the term and escrow provisions described above, the terms of each interim investment advisory agreement and interim investment subadvisory agreement are substantially similar to those of the corresponding current investment advisory agreement or current investment sub-advisory agreement.
In addition, the Funds name will change to reflect Janus Henderson as part of the Funds name.
Janus Investment Fund | 35 |
INTECH U.S. Managed Volatility Fund
Notes to Financial Statements (unaudited)
Shareholders of record of the Fund as of December 29, 2016, will receive a proxy statement, notice of special meeting of shareholders, and proxy card, containing detailed information regarding shareholder proposals with respect to these and certain other matters. The shareholder meeting is expected to be held on or about April 6, 2017.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2016 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.
36 | DECEMBER 31, 2016 |
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 and Sub-Advisory Agreements with Janus and Janus Affiliates during the Period
On September 15, 2016, Janus Capital Group Inc. (Janus) advised the Trustees of Janus Investment Fund (the Trust), each of whom serves as an independent Trustee (the Board or the Trustees), of its intent to seek a strategic combination of its advisory business with Henderson Group plc (Henderson). The Board met with the Chief Executive Officer of Janus, who outlined the proposed combination and the potential benefits to Janus Capital Management LLC (Janus Capital) and each Fund of the Trust (each, a Fund and collectively, the Funds). Subsequent to the September 15, 2016 meeting, the Trustees identified a list of basic principles, which they believed should serve as the foundation for their review of the organizational, operational and strategic issues involved with any potential change in control of Janus Capital, the investment adviser to the Funds. These basic principles were communicated to Janus Capital on September 27, 2016, and were intended to be shared with Henderson. On October 3, 2016, Janus announced that it had entered into a definitive Agreement and Plan of Merger with Henderson pursuant to which Janus and Henderson agreed to effect an all-stock merger of equals strategic combination of their respective businesses, with Janus Capital surviving the merger as a direct wholly-owned subsidiary of Henderson (the Transaction). The Board was advised that, subject to certain conditions, the Transaction is currently expected to close during the second quarter of 2017.
As part of its due diligence, the Board developed an initial list of questions related to the proposed transaction, which was provided to Janus Capital on October 6, 2016. At a special Board meeting held on October 19, 2016, the Board considered Janus Capitals response to the initial information request and met with the management of Janus to discuss the impact of the Transaction on the nature, extent and quality of services Janus Capital is expected to provide to the Janus Funds following the Transaction, addressing, among other matters, the personnel expected to provide such services, and the resources available to do so. After its October 19, 2016 meeting, the Board developed a supplemental request for additional information, which was provided to Janus Capital on October 26, 2016. At another special Board meeting held on November 7-8, 2016, the Board considered Janus Capitals response to the supplemental information request and again met with the management of Janus and Henderson to discuss the impact of the Transaction on the nature, extent and quality of services Janus Capital is expected to provide to the Janus Funds following the Transaction, and also met with various officers of the Funds and of Janus Capital, including various Fund portfolio managers. After its November 7-8, 2016 meeting, the Board developed a second supplemental request for additional information, which was provided to Janus Capital on November 21, 2016. On December 7-8, 2016, the Board met to consider Janus Capitals response to the second supplemental information request and to also consider the proposed new investment advisory agreements between the Trust, on behalf of each Fund, and Janus Capital (each, a New Advisory Agreement and collectively, the New Advisory Agreements) and the new sub-advisory agreements between Janus Capital and each of the Funds that utilize INTECH Investment Management LLC (INTECH), Perkins Investment Management LLC (Perkins), or Janus Singapore Pte. Limited (Janus Singapore, and together with INTECH and Perkins, the Sub-Advisers and each, a Sub-Adviser) as sub-advisers (each, a New Sub-Advisory Agreement and collectively, the New Sub-Advisory Agreements) to take effect immediately after the Transaction or shareholder approval, whichever is later. During each of these meetings, the Board sought additional and clarifying information as it deemed necessary or appropriate. In addition, the Board engaged its independent fee consultant to help evaluate certain of the proposals that the Board was being asked to consider. Throughout the process, the Board had the assistance of its independent legal counsel, who advised them on, among other things, its duties and obligations.
Janus Investment Fund | 37 |
INTECH U.S. Managed Volatility Fund
Additional Information (unaudited)
In connection with the Boards review, Janus Capital provided, and the Board obtained, substantial information regarding the following matters: the management, financial position and business of Henderson; the history of Hendersons business and operations; the investment performance of the investment companies advised by Henderson; the proposed structure, operations and investment processes of the combined investment management organization after the Transaction and the strategy for operating and growing the business following the Transaction; the future plans of Janus and Henderson with respect to the Funds and any proposed changes to the operations or structure of the Funds; and the future plans of Janus and Henderson with respect to the provision of services to the Funds, and the entities providing such services, including those affiliated with Janus. The Board also received information regarding the terms of the Transaction, anticipated management of the combined organization, the resources that each of Janus and Henderson bring to the combined organization and the process being followed by Janus and Henderson to integrate their organizations. The Board also received information regarding the impact of the Transaction on each of INTECH, Perkins and Janus Singapore.
In connection with the Boards approval of New Advisory Agreements and New Sub-Advisory Agreements at its December 8, 2016 meeting, the Board also continued its on-going annual process to determine whether to continue the existing investment advisory agreements between Janus Capital and the Trust on behalf of each Fund (each, a Current Advisory Agreement and collectively, the Current Advisory Agreements) and the existing sub-advisory agreements between Janus Capital and each of the Funds that utilize INTECH, Perkins, or Janus Singapore as sub-advisers (each, a Current Sub-Advisory Agreement and collectively, the Current Sub-Advisory Agreements). In this regard, the Board received and reviewed information provided by Janus and the respective Sub-Advisers in response to requests of the Board and its independent legal counsel. The Board also received and reviewed information and analysis provided by, and in response to requests of, its independent fee consultant. The Board noted that as part of this annual process, the Board had considered and was in the process of considering, numerous factors, including the nature and quality of services provided by Janus Capital and each Sub-Adviser, as applicable; investment performance, on an absolute basis and relative to appropriate peer groups and one or a combination of market indices; investment management fees, expense ratios and asset sizes of the Funds and peer groups; investment management fees charged to comparable investment companies, separate accounts and non-fund clients; Janus Capitals profitability from managing the Funds; fall-out benefits to Janus Capital from its relationship to the Funds, including revenues derived from services provided to the Funds by affiliates of Janus Capital; and the potential benefits to Janus Capital, the Funds of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms.
In determining whether to approve the New Advisory Agreement for each Fund and the New Sub-Advisory Agreement for Funds managed by INTECH, Perkins or Janus Singapore in connection with the Transaction, and whether to recommend approval to Fund shareholders, the Board received information and made inquiries into all matters as it deemed appropriate. The Board reviewed and analyzed various factors it deemed relevant, including the following factors, among others, none of which by itself was considered dispositive:
· The terms of the New Advisory Agreements are substantially similar to the corresponding Current Advisory Agreements, and the contractual fee rate will not change. In this regard, see the discussion of the Boards considerations with respect to its most recent approval of the Current Advisory Agreements prior to December 8, 2016, as disclosed in each Funds most recent prior annual or semi-annual shareholder report, as applicable.
· The terms of the New Sub-Advisory Agreements are substantially similar to the corresponding Current Sub-Advisory Agreements, and the contractual fee rate will not change. In this regard, see the discussion of the Boards considerations with respect to its most recent approval of the Current Sub-Advisory Agreements prior to December 8, 2016, as disclosed in each Funds most recent prior annual or semi-annual shareholder report, as applicable.
· Janus Capitals plans for the operation of the Funds, including its plans for the continued provision of all services currently provided to the Funds by Janus Capital and its affiliates, including, among others, investment advisory services, portfolio trading services, and Fund administrative and accounting services, and the personnel and resources proposed to support the provision of such services.
· The estimated profitability to Janus Capital from managing the Funds after the Transaction, including potential economies of scale and fall-out benefits to Janus Capital from its relationship to the Funds, including revenues derived from services provided to the Funds by affiliates of Janus Capital, and the potential benefits to Janus
38 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Additional Information (unaudited)
Capital, and the Funds of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms.
In connection with its deliberations, the Board received assurances from Janus, on behalf of itself and its affiliates (collectively, Janus) including the following:
· Janus has provided to the Board such information as it believes is reasonably necessary to evaluate the New Advisory Agreements and New Sub-Advisory Agreements.
· Janus is committed to the continuance, without interruption, of services to the Funds of at least the type and quality currently provided by Janus Capital and its affiliates, or superior thereto.
· The Transaction is not expected to affect negatively the nature, extent or quality of the investment advisory services provided by Janus Capital to the Funds following the Transaction, and the investment advisory services are expected to be at least comparable to the services being provided under the Current Advisory Agreements and Current Sub-Advisory Agreements. In this regard, the Board noted specific representations that Janus does not intend for the nature, extent or quality of investment advisory and other services to be provided to the Funds following the Transaction to change, and the extent of such services were expected to increase based on the combined resources of the combined investment management organization after the Transaction, and should the nature, extent or quality of such services decline, Janus would commit the resources needed to return such services to pre-Transaction levels.
· The Funds current operations were expected to remain largely unchanged, except for certain fund reorganizations which will be separately considered by the Board, and such other changes as were or will be presented to the Board.
· Janus does not intend to make changes to the portfolio managers providing services to the Funds, other than proposed changes in the management of certain Funds as discussed with the Board, including those related to proposals to merge certain Funds with Funds managed by Henderson Global Investors (North America) Inc., an indirect, wholly-owned subsidiary of Henderson, and subject to such changes as may arise at any time as a result of the ongoing process of portfolio manager evaluation.
· After the Transaction, the extent of distribution and marketing services provided to the Janus Funds were expected to increase based on the combined resources of Janus and Henderson. In this regard, Janus Capital advised the Board that after the Transaction, the extent of distribution and marketing services provided to the Janus Funds are expected to increase based on the combined resources of Janus and Henderson. This is due primarily to the anticipated increase of sales related resources and expanded global presence of the combined Janus Henderson organization, which is expected to enhance visibility and brand recognition of the Janus Henderson Funds.
· The intent of Janus Capital to take the necessary and appropriate steps to retain and attract its key investment advisory personnel.
· The intent of Janus to take the necessary and appropriate steps to retain and attract its key compliance, financial, fund accounting and administrative personnel supporting the management and oversight of the Funds.
· Janus is not aware of any express or implied term, condition, arrangement or understanding that would impose in its best judgement an unfair burden on any Fund as a result of the Transaction, as defined in Section 15(f) of the 1940 Act, and that Janus will take no action that would have the effect of imposing such an unfair burden on any Fund in connection with the Transaction.
Janus assured the Board that it intended to comply with Section 15(f) of the Investment Company Act of 1940, as amended (the 1940 Act). Section 15(f) provides a non-exclusive safe harbor for an investment adviser to an investment company or any of its affiliated persons to receive any amount or benefit in connection with a change in control of the investment adviser so long as two conditions are met. First, for a period of three years after the transaction, at least 75% of the board members of the investment company must not be interested persons of such investment adviser (as defined under the 1940 Act). The composition of the Board is in compliance with this provision of Section 15(f). In addition, after careful review and consideration, the Board determined that it would be in the best interests of the Funds to add to the Board an individual who currently acts as a non-interested board member of the
Janus Investment Fund | 39 |
INTECH U.S. Managed Volatility Fund
Additional Information (unaudited)
Henderson Trust. The Board believes that this change in the Board composition will provide perspective and insight relating to experience working with the Henderson organization. The Boards Nominating and Governance Committee considered a number of candidates and recommended that the Board nominate one proposed new trustee from those candidates who currently act as non-interested board members of the Henderson Trust. The Board approved that trustee nominee to serve on the Board, subject to election by the shareholders of the Funds and contingent on the closing of the Transaction. If the new trustee is elected and serves on the Board, the Board composition would continue to satisfy the provisions of Section 15(f).
To meet the second condition of Section 15(f), an unfair burden must not be imposed upon the investment company as a result of such transaction or any express or implied terms, conditions or understandings applicable thereto. The term unfair burden is defined in Section 15(f) to include any arrangement during the two-year period after the transaction, whereby the investment adviser, or any interested person of such adviser, receives or is entitled to receive any compensation, directly or indirectly, from the investment company or its shareholders (other than fees for bona fide investment advisory or other services) or from any person in connection with the purchase or sale of securities or other property to, from or on behalf of the investment company (other than bona fide ordinary compensation as principal underwriter for such investment company).
Janus represented that it does not believe that an unfair burden will be placed on the Funds as a result of the Transaction. In furtherance thereof, Janus has undertaken to pay the costs of preparing and distributing proxy materials to, and of holding the meetings of, the Funds shareholders (the Meetings), as well as other fees and expenses in connection with the Transaction, including the reasonable fees and expenses of legal counsel and consultants to the Funds and the Trustees. In addition, Janus has agreed, for a period of two years following the closing of the Transaction, (i) not to request any increases to advisory fees for the Funds, other than those proposed to and approved by the Board prior to the close of the Transaction, and (ii) to continue to use the current process by which expense caps are set annually for the Funds.
As a result of its review and consideration of the New Investment Advisory Agreements and New Sub-Advisory Agreements in connection with the Transaction, at a meeting on December 8, 2016, the Board voted unanimously to approve a New Investment Advisory Agreement for each Fund and a New Sub-Advisory Agreement for each Fund managed by INTECH, Perkins or Janus Singapore, and to recommend such agreements to the Funds shareholders for their approval.
Approval of Interim Advisory and Sub-Advisory Agreements with Janus and Janus Affiliates during the Period
In the event shareholders of a Fund do not approve such Funds New Advisory Agreement and/or New Sub-Advisory Agreement at the Meetings prior to the closing of the Transaction, Janus Capital proposed that an interim investment advisory agreement between Janus Capital and such Fund (each, an Interim Advisory Agreement and collectively, the Interim Advisory Agreements) and an interim sub-advisory agreement between Janus Capital and the applicable Sub-Adviser (each, an Interim Sub-Advisory Agreement and collectively, the Interim Sub-Advisory Agreements) take effect upon the closing of the Transaction. At the December 8, 2016 meeting, the Board, all of whom are Independent Trustees, unanimously approved an Interim Advisory Agreement for each Fund and an Interim Sub-Advisory Agreement for each applicable Fund in order to assure continuity of investment advisory services to the Funds and sub-advisory services to the sub-advised Funds after the Transaction. The terms of each Interim Advisory Agreement are substantially identical to those of the applicable Current Advisory Agreement and New Advisory Agreement, except for the term and escrow provisions described below. Similarly, the terms of each Interim Sub-Advisory Agreement are substantially identical to those of the Current Sub-Advisory Agreements and New Sub-Advisory Agreements, except for the term and escrow provisions described below. The Interim Advisory Agreement and Interim Sub-Advisory Agreement will continue in effect for a term ending on the earlier of 150 days from the closing of the Transaction (the 150-day period) or when shareholders of the Fund approve the New Advisory Agreement and/or New Sub-Advisory Agreement. Pursuant to Rule 15a-4 under the 1940 Act, compensation earned by Janus Capital under an Interim Advisory Agreement and compensation earned by a Sub-Adviser under an Interim Sub-Advisory Agreement will be held in an interest-bearing escrow account. If shareholders of a Fund approve the New Advisory Agreement prior to the end of the 150-day period, the amount held in the escrow account under the Interim Advisory Agreement will be paid to Janus Capital. If shareholders of a Fund approve the New Advisory Agreement and New Sub-Advisory Agreement prior to the end of the 150-day period, the amount held in the escrow account under the Interim Sub-Advisory Agreement will be paid to the Sub-Adviser. If shareholders of a Fund do not approve the New Advisory Agreement prior to the end of the 150-day period, the Board will take such action as it
40 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Additional Information (unaudited)
deems to be in the best interests of the Fund, and Janus Capital will be paid the lesser of its costs incurred in performing its services under the Interim Advisory Agreement or the total amount in the escrow account, plus interest earned. If shareholders of a Fund do not approve the New Advisory Agreement and/or New Sub-Advisory Agreement prior to the end of the 150-day period, the Board will take such action as it deems to be in the best interests of the Fund, and the Sub-Adviser will be paid the lesser of its costs incurred in performing its services under the Interim Sub-Advisory Agreement or the total amount in the escrow account, plus interest earned.
Approval of Sub-Advisory Agreements with Henderson Investment Management Limited during the Period
Janus Capital met with the Trustees on November 7-8, 2016, and December 7-8, 2016, to discuss the approval of a new sub-advisory agreement between Janus Capital and Henderson Investment Management Limited (HIML) (each, a HIML Sub-Advisory Agreement and collectively, the HIML Sub-Advisory Agreements) on behalf of each of Janus Asia Equity Fund, Janus Emerging Markets Fund, and Janus Global Real Estate Fund (each, an HIML Fund and together, the HIML Funds) to take effect immediately after the closing of the Transaction or shareholder approval, whichever is later. At the meetings, the Trustees also discussed the HIML Sub-Advisory Agreements with their independent counsel in executive session. During the course of these meetings, the Trustees requested and considered such information as they deemed relevant to their deliberations. In addition, at prior meetings and during the course of these meetings the Board also undertook a comprehensive process to evaluate the impact of the Transaction on the nature, quality and extent of services expected to be provided by Janus Capital and HIML to each HIML Fund, including after the completion of the Transaction. For a fuller discussion of the Boards consideration of the approval of a new investment advisory agreement for the HIML Funds in connection with the Transaction, see Approval of Advisory and Sub-Advisory Agreements with Janus and its Affiliates During the Period above.
At a meeting of the Board of Trustees held on December 8, 2016, the Trustees considered the HIML Sub-Advisory Agreements. In determining whether to approve the HIML Sub-Advisory Agreements, and whether to recommend approval to the shareholders of each HIML Fund, the Board received information and made inquiries into all matters as it deemed appropriate. The Board reviewed and analyzed various factors it deemed relevant, including the following factors, among others, none of which by itself was considered dispositive:
· the terms of each HIML Sub-Advisory Agreement;
· the nature, quality and extent of services expected to be provided under the HIML Sub-Advisory Agreements, including the reputation, qualifications and background of HIML and its operational and compliance infrastructures;
· the investment approach, the experience and skills of senior management and investment personnel of HIML, including the portfolio managers who would be responsible for managing all or part of the portfolio of each HIML Fund, noting the resources made available to such personnel;
· the ability of HIML to attract and retain high-quality personnel and the organizational depth of HIML;
· the sub-advisory fee rate under each HIML Sub-Advisory Agreement, as well as the overall management fee structure of each HIML Fund, noting that the sub-advisory fee rate is consistent with the approach utilized in the Janus Funds complex for other sub-advisory relationships, taking into account the allocation of managed assets between Janus Capital and HIML for the Global Real Estate Fund;
· under each HIML Sub-Advisory Agreement, Janus Capital would be responsible for paying HIML out of its fees;
· the fall out benefits to HIML and its affiliates from its relationship with each HIML Fund, including the potential benefits to HIML and its affiliates and each HIML Fund of receiving research services from broker/dealer firms in connection with the allocation of portfolio transactions to such firms;
· the potential for economies of scale with respect to the overall fee structure of each HIML Fund and whether either Fund will benefit from any economies of scale; and
· the costs of seeking approval of the HIML Sub-Advisory Agreements will not be borne by the HIML Funds.
As a result of its review and consideration of each HIML Sub-Advisory Agreement and related matters, on December 8, 2016, the Board voted unanimously to approve each HIML Sub-Advisory Agreement and to recommend such agreement to each HIML Funds shareholders for their approval.
Janus Investment Fund | 41 |
INTECH U.S. Managed Volatility Fund
Additional Information (unaudited)
Renewal of Investment Advisory and Sub-Advisory Agreements for INTECH U.S. Core Fund
As noted above, at its December 8, 2016 meeting, the Board continued its on-going annual process to determine whether to continue the Current Advisory Agreements and the Current Sub-Advisory Agreements. In this regard, the Board received and reviewed information provided by Janus and the respective Sub-Advisers in response to requests of the Board and its independent legal counsel. The Board also received and reviewed information and analysis provided by, and in response to requests of, its independent fee consultant. The Board noted that the Current Advisory Agreement between the Trust, on behalf of INTECH U.S. Core Fund, and Janus Capital and the Current Sub-Advisory Agreement between Janus Capital and INTECH, on behalf of the Fund, would expire on January 1, 2017, if not renewed. The Board noted that the date of termination for the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds was February 1, 2017, if not renewed. Accordingly, the Board voted unanimously to renew the Current Advisory Agreement and the Current Sub-Advisory Agreement for INTECH U.S. Core Fund through January 31, 2017 in order to (i) align the termination date of such Agreements with the termination date of the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds and (ii) allow for a more complete consideration of such Agreements, as well as the Current Advisory Agreements and the Current Sub-Advisory Agreements for the other Funds.
42 | DECEMBER 31, 2016 |
INTECH U.S. 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, 2016. 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, swaptions, 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 U.S. 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. Also included are ratios of expenses and net investment income to average net assets.
44 | DECEMBER 31, 2016 |
INTECH U.S. Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
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-0217-7549 | 125-24-93016 02-17 |
SEMIANNUAL REPORT December 31, 2016 | |||
Janus Adaptive Global Allocation Fund | |||
Janus Investment Fund | |||
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HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics | |||
Table of Contents
Janus Adaptive Global Allocation Fund
Janus Adaptive Global Allocation Fund (unaudited)
PERFORMANCE OVERVIEW
Janus Adaptive Global Allocation Fund Class I Shares returned 3.81% for the six-month period ended December 31, 2016. This compares with a return of 4.00% for its primary benchmark, the Adaptive Global Allocation 70-30 Index, an internally calculated index comprised of the MSCI All Country World Index (70%) and the Bloomberg Barclays Global Aggregate Bond Index (30%). The Funds secondary benchmark, the MSCI All Country World Index, and its tertiary benchmark, the Bloomberg Barclays Global Aggregate Bond Index, returned 6.55% and -1.82%, respectively.
MARKET ENVIRONMENT
Global stocks registered steady gains over the period. Investors quickly regained their composure in July after the UKs decision to leave the European Union (EU) jolted markets the prior month. Later in the period, the surprise election of Donald Trump to the U.S. presidency pushed U.S. equity benchmarks to record levels. A recovery in crude oil prices after an early-year plunge propelled energy stocks, resulting in the sector being among the periods best performers. Other cyclical sectors also registered steady gains as investors expected that a Trump administration would champion pro-growth policies. Given the bias toward improving global growth, historically defensive sectors lagged the broader market.
Early year volatility, capped by Junes Brexit vote, bled into the period, pushing yields on the 10-year U.S. Treasury down to 1.36% in early July. They reversed course, however, as Federal Reserve (Fed) officials hinted at their intent to raise interest rates, a step that occurred in December. The sell-off in Treasurys accelerated after Novembers U.S. elections, with the yield on the 10-year note finishing the period at 2.44%. The risk-on environment caused spreads to narrow on both investment-grade and high-yield corporate credit.
PERFORMANCE DISCUSSION
For the period, the underperformance against the primary benchmark was driven by our cautious, although steady, stance on equities during the third quarter , supported by our options-based signals which did not indicate increased attractiveness for U.S., European or emerging markets equities, particularly post-Brexit. During the fourth quarter and after the U.S. election, however, our signals changed, thus pointing to increased attractiveness for U.S. equities and some selected emerging markets. As a result, such change was reflected in the portfolios composition.
Just as important during the period, our signals indicated higher expected tail losses (ETLs), for global government debt. Clearly, our signals correctly anticipated that investors appetite for returns near zero (or even below zero) were rapidly diminishing. Thus, during the period, our fixed income nominal duration was reduced to reflect the limited upside potential for global sovereigns in the period ahead.
DERIVATIVES
During the period, the Fund used a series of derivative instruments including options, futures, swaps and forward exchange contracts. Since many of the derivatives we use, namely futures and certain options, are liquid, the Fund utilizes them as low-cost instruments to dynamically adjust exposures to desired targets. Other derivatives, including swaps and forward contracts, are also used to adjust portfolio exposures as conditions merit and gain access to certain markets in a timely and/or cost-effective manner. This may lead to short positions in futures when exposures need to be adjusted downward. For the period, the Funds derivative exposure detracted from performance. Please see the Derivative Instruments section in the Notes to Financial Statements for a discussion of derivatives used by the Fund.
Janus Investment Fund | 1 |
Janus Adaptive Global Allocation Fund (unaudited)
OUTLOOK
We believe that 2017 will continue to be a year where the safe has become unsafe as we return to the old normal, with the distortions that have kept inflation and real rates so low dissipating as the Fed tightens faster than most investors anticipate.
Unconventional times define the current investment environment. Rapidly changing circumstances challenge the use of conventional investment practices. The shapes of the distributions of forward returns could change dramatically over time, especially in this environment. Thus, our emphasis and focus on risk management. Since our investment process and technology focuses precisely on garnering forward-looking information on risk from the options market, we remain confident that our adaptive technology will allow us to navigate successfully through 2017, where unprecedented changes in risks could likely surface in greater frequency and with greater intensity.
Thank you for investing in Janus Adaptive Global Allocation Fund.
2 | DECEMBER 31, 2016 |
Janus Adaptive Global Allocation Fund (unaudited)
Fund At A Glance
December 31, 2016
5 Largest Equity Holdings - (% of Net Assets) | |
iShares Core S&P 500 | |
Exchange-Traded Funds (ETFs) | 13.4% |
Vanguard FTSE Pacific | |
Exchange-Traded Funds (ETFs) | 3.5% |
iShares MSCI Mexico Capped | |
Exchange-Traded Funds (ETFs) | 2.3% |
Deutsche X-trackers Harvest CSI 300 China A-Shares | |
Exchange-Traded Funds (ETFs) | 1.3% |
Vanguard S&P 500 | |
Exchange-Traded Funds (ETFs) | 1.1% |
21.6% |
Asset Allocation - (% of Net Assets) | |||||
Investment Companies | 57.1% | ||||
Common Stocks | 29.1% | ||||
Foreign Government Bonds | 1.9% | ||||
United States Treasury Notes/Bonds | 0.6% | ||||
OTC Purchased Options Puts | 0.1% | ||||
Preferred Stocks | 0.0% | ||||
Other | 11.2% | ||||
100.0% |
Emerging markets comprised 6.0% of total net assets.
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2016 | As of June 30, 2016 |
Janus Investment Fund | 3 |
Janus Adaptive Global Allocation Fund (unaudited)
Performance
See important disclosures on the next page. |
| Expense Ratios - | ||||||||
Average Annual Total Return - for the periods ended December 31, 2016 |
|
| per the October 28, 2016 prospectuses | ||||||
|
| Fiscal
| One
| Since |
|
| Total Annual Fund
| Net Annual Fund
| |
Class A Shares at NAV |
| 3.66% | 5.10% | -0.93% |
|
| 1.65% | 1.17% | |
Class A Shares at MOP |
| -2.31% | -0.93% | -4.70% |
|
|
|
| |
Class C Shares at NAV | 3.25% | 4.35% | -1.63% |
|
| 2.40% | 1.92% | ||
Class C Shares at CDSC |
| 2.25% | 3.35% | -1.63% |
|
|
|
| |
Class D Shares(1) |
| 3.73% | 5.28% | -0.87% |
|
| 2.70% | 1.19% | |
Class I Shares |
| 3.81% | 5.47% | -0.64% |
|
| 1.39% | 0.92% | |
Class N Shares |
| 3.81% | 5.48% | -0.63% |
|
| 1.38% | 0.92% | |
Class S Shares |
| 3.66% | 5.10% | -1.02% |
|
| 1.89% | 1.42% | |
Class T Shares |
| 3.67% | 5.33% | -0.84% |
|
| 1.64% | 1.17% | |
Adaptive Global Allocation 70/30 Index (Hedged)(2) |
| 4.00% | 6.82% | 0.97% |
|
|
|
| |
MSCI All Country World Index |
| 6.55% | 7.86% | -0.42% |
|
|
|
| |
Bloomberg Barclays Global Aggregate Bond Index (Hedged) |
| -1.82% | 3.95% | 3.67% |
|
|
|
| |
Adaptive Global Allocation 70/30 Index (Unhedged)(3) |
| 2.57% | 6.25% | 0.33% |
|
|
|
| |
Bloomberg Barclays Global Aggregate Bond Index (Unhedged)(3) |
| -6.31% | 2.09% | 1.47% |
|
|
|
| |
Morningstar Quartile - Class I Shares |
| - | 3rd | 2nd |
|
|
|
| |
Morningstar Ranking - based on total returns for World Allocation |
| - | 258/496 | 194/482 |
|
|
|
|
4 | DECEMBER 31, 2016 |
Janus Adaptive Global Allocation Fund (unaudited)
Performance
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 monthend 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.
The expense ratios shown are estimated.
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.
Janus Capital does not have prior experience managing an adaptive global allocation investment strategy. There is a risk that the Funds investments will correlate with stocks and bonds to a greater degree than anticipated, and that the proprietary options implied information model used to implement the Fund's investment strategy may not achieve the desired results. The Fund may underperform during up markets and be negatively affected in down markets. Diversification does not assure a profit or eliminate the risk of loss.
Foreign securities are subject to currency fluctuations, political and economic uncertainty, increased volatility and lower liquidity, all of which are magnified in emerging markets. Fixed income securities are subject to interest rate, inflation, credit and default risk. As interest rates rise, bond prices usually fall, and vice versa.
Derivatives involve risks in addition to the risks of the underlying securities, including gains or losses which, as a result of leverage, can be substantially greater than the derivatives original cost. Short sales are speculative transactions with potentially unlimited losses, and the use of leverage can magnify the effect of losses.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect performance.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
See Financial Highlights for actual expense ratios during the reporting period.
Until the earlier of three years from inception or the Funds assets meeting the first fee breakpoint, Janus Capital may recover expenses previously waived or reimbursed if the expense ratio falls below certain limits.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return or yield, and therefore the ranking for the period.
© 2016 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
A Funds portfolio may differ significantly from the securities held in an index. An index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
See Useful Information About Your Fund Report.
*The Funds inception date June 23, 2015
(1) Closed to certain new investors.
See important disclosures on the next page.
Janus Investment Fund | 5 |
Janus Adaptive Global Allocation Fund (unaudited)
Performance
(2) Effective on or about January 1, 2017, the Funds investment strategies and benchmark indices changed. These changes are intended to provide the Fund with more flexibility to invest across global equity investments and global fixed-income investments and at times, invest in commodity-linked investments, without having to allocate its investments across these asset classes in any fixed proportion. In addition, these changes limit the Funds use of derivatives. The changes to the Fund's benchmark indices are summarized below:
· The Funds primary benchmark changed from the Adaptive Global Allocation 70/30 Index to the MSCI All Country World Index.
· The Adaptive Global Allocation 60/40 Index was added as a secondary benchmark for the Fund.
· The Fund will continue to retain the Bloomberg Barclays Global Aggregate Bond Index as an additional secondary benchmark.
(3) The Funds primary and secondary benchmarks changed to reflect the hedged, rather than unhedged, version of the Bloomberg Barclays Global Aggregate Bond Index. This change was intended to provide a more appropriate comparison for the Fund.
6 | DECEMBER 31, 2016 |
Janus Adaptive Global Allocation 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 | $1,036.60 | $5.65 |
| $1,000.00 | $1,019.66 | $5.60 | 1.10% | ||
Class C Shares | $1,000.00 | $1,032.50 | $9.53 |
| $1,000.00 | $1,015.83 | $9.45 | 1.86% | ||
Class D Shares | $1,000.00 | $1,037.30 | $5.14 |
| $1,000.00 | $1,020.16 | $5.09 | 1.00% | ||
Class I Shares | $1,000.00 | $1,038.10 | $4.32 |
| $1,000.00 | $1,020.97 | $4.28 | 0.84% | ||
Class N Shares | $1,000.00 | $1,038.10 | $4.32 |
| $1,000.00 | $1,020.97 | $4.28 | 0.84% | ||
Class S Shares | $1,000.00 | $1,036.60 | $6.06 |
| $1,000.00 | $1,019.26 | $6.01 | 1.18% | ||
Class T Shares | $1,000.00 | $1,036.70 | $4.98 |
| $1,000.00 | $1,020.32 | $4.94 | 0.97% | ||
| Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Funds prospectuses for more information regarding waivers and/or reimbursements. |
Janus Investment Fund | 7 |
Janus Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2016
Shares/Principal/ | Value | ||||||
Foreign Government Bonds 1.9% | |||||||
Australia Government Bond, 2.7500%, 4/21/24 | 695,000 | AUD | $507,238 | ||||
Canadian Government Bond, 3.5000%, 12/1/45 | 196,000 | CAD | 181,422 | ||||
Spain Government Bond, 5.9000%, 7/30/26 (144A) | 246,000 | EUR | 364,504 | ||||
Total Foreign Government Bonds (cost $1,079,204) | 1,053,164 | ||||||
United States Treasury Notes/Bonds 0.6% | |||||||
3.1250%, 8/15/44 (cost $301,488) | $303,000 | 305,990 | |||||
Common Stocks 29.1% | |||||||
Aerospace & Defense 0.2% | |||||||
Arconic Inc | 1,061 | 19,671 | |||||
Boeing Co | 15 | 2,335 | |||||
CAE Inc | 588 | 8,225 | |||||
L-3 Communications Holdings Inc | 48 | 7,301 | |||||
Lockheed Martin Corp | 21 | 5,249 | |||||
Raytheon Co | 70 | 9,940 | |||||
Rockwell Collins Inc | 208 | 19,294 | |||||
Singapore Technologies Engineering Ltd | 2,900 | 6,439 | |||||
Textron Inc | 123 | 5,973 | |||||
Thales SA | 101 | 9,785 | |||||
TransDigm Group Inc | 20 | 4,979 | |||||
Zodiac Aerospace | 373 | 8,562 | |||||
107,753 | |||||||
Air Freight & Logistics 0.1% | |||||||
Bollore SA | 655 | 2,307 | |||||
CH Robinson Worldwide Inc | 186 | 13,626 | |||||
Expeditors International of Washington Inc | 488 | 25,844 | |||||
Royal Mail PLC | 713 | 4,056 | |||||
45,833 | |||||||
Airlines 0.2% | |||||||
Alaska Air Group Inc | 34 | 3,017 | |||||
ANA Holdings Inc | 7,000 | 18,831 | |||||
Cathay Pacific Airways Ltd | 27,000 | 35,494 | |||||
Delta Air Lines Inc | 156 | 7,674 | |||||
easyJet PLC | 898 | 11,105 | |||||
Japan Airlines Co Ltd | 1,000 | 29,185 | |||||
Singapore Airlines Ltd | 1,300 | 8,661 | |||||
Southwest Airlines Co | 220 | 10,965 | |||||
United Continental Holdings Inc* | 33 | 2,405 | |||||
127,337 | |||||||
Auto Components 0.2% | |||||||
Adient plc* | 4 | 234 | |||||
Aisin Seiki Co Ltd | 300 | 12,984 | |||||
Cie Generale des Etablissements Michelin | 99 | 11,010 | |||||
Continental AG | 63 | 12,262 | |||||
GKN PLC | 13,045 | 53,132 | |||||
NHK Spring Co Ltd | 200 | 1,899 | |||||
Nokian Renkaat OYJ | 430 | 16,026 | |||||
Sumitomo Rubber Industries Ltd | 100 | 1,582 | |||||
Valeo SA | 33 | 1,896 | |||||
Yokohama Rubber Co Ltd | 100 | 1,783 | |||||
112,808 | |||||||
Automobiles 0.4% | |||||||
Daimler AG | 106 | 7,866 | |||||
Ford Motor Co | 11,091 | 134,534 | |||||
General Motors Co | 488 | 17,002 | |||||
Isuzu Motors Ltd | 1,100 | 13,888 | |||||
Mazda Motor Corp | 800 | 12,996 | |||||
Peugeot SA* | 3,078 | 50,171 | |||||
236,457 | |||||||
Banks 0.9% | |||||||
ABN AMRO Group NV | 31 | 687 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2016 |
Janus Adaptive Global Allocation Fund
Schedule of Investments (unaudited)
December 31, 2016
Shares/Principal/ | Value | |||||||
Common Stocks (continued) | ||||||||
Banks (continued) | ||||||||
Aozora Bank Ltd | 3,000 | $10,613 | ||||||
Bank of America Corp | 1,117 | 24,686 | ||||||
Bank of East Asia Ltd | 1,400 | 5,341 | ||||||
Bank of Queensland Ltd | 548 | 4,682 | ||||||
Barclays PLC | 8,909 | 24,469 | ||||||
BOC Hong Kong Holdings Ltd | 4,500 | 16,112 | ||||||
Chugoku Bank Ltd | 300 | 4,295 | ||||||
Citigroup Inc | 60 | 3,566 | ||||||
Citizens Financial Group Inc |