nv14
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
ON DECEMBER 10, 2012
REGISTRATION NO. [ ]
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-14
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
o PRE-EFFECTIVE AMENDMENT NO. o POST-EFFECTIVE AMENDMENT NO.
(Check appropriate Box or Boxes)
JANUS INVESTMENT FUND
(Exact Name of Registrant as Specified in Charter)
151 DETROIT STREET, DENVER, COLORADO 80206-4805
(Address of Principal Executive Offices)
303-333-3863
(Registrants Telephone No., including Area Code)
STEPHANIE GRAUERHOLZ-LOFTON, ESQ.
151 DETROIT STREET
DENVER, COLORADO 80206-4805
(Name and Address of Agent for Service)
APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: As soon as practicable after
this Registration Statement becomes effective under the Securities Act of 1933.
The Registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant shall
file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until this Registration Statement shall become
effective on such date as the Commission, acting pursuant to Section 8(a), may
determine.
No filing fee is required because an indefinite number of shares of
beneficial interest with $0.01 par value, of the Registrant have previously been
registered pursuant to Section 24(f) of the Investment Company Act of 1940, as
amended.
For
shareholders of
Janus World Allocation Fund
[ ,
2012]
Dear Shareholder:
We are writing to inform you, as a shareholder of Janus World
Allocation Fund, that the Trustees of your Fund have approved
Janus proposal to merge the Fund into Janus Moderate
Allocation Fund, effective on or about
[ ,
2013]. As described in the enclosed Prospectus/Information
Statement, Janus Moderate Allocation Fund recently changed its
principal investment strategies, and they are now substantially
similar to those of Janus World Allocation Fund. Given these
strategy changes, Janus is proposing to merge the two funds
based largely on the resulting similarities in the funds
investment objectives, strategies and policies, as well as the
potential for expense efficiencies due to the larger combined
asset base of the merged funds.
Both Janus World Allocation Fund and Janus Moderate Allocation
Fund are managed by Dan Scherman, who will continue to manage
Janus Moderate Allocation Fund after the merger. Following the
merger, Janus Moderate Allocation Fund will continue to be
managed to seek total return through growth of capital and
income, which is similar to Janus World Allocation Funds
investment objective of long-term growth of capital with a
secondary emphasis on income.
As of the merger closing date, you will automatically receive
the same class of shares of Janus Moderate Allocation Fund as
you currently hold in Janus World Allocation Fund. You do not
need to take any action related to the merger as your shares
will be transferred automatically on the merger date.
We believe investors will benefit from this fund merger given
the efficiencies that may occur as a result. You will also pay a
lower management fee than you paid as a shareholder of Janus
World Allocation Fund. In addition, this merger is designed to
qualify as a tax-free merger, so you should not realize a tax
gain or loss as a direct result of the merger, nor will you pay
any of the expenses associated with the merger.
Enclosed you will find a Q&A and Prospectus/Information
Statement with additional details describing the merger. If you
have additional questions, please contact your financial
advisor/intermediary for assistance, or call a Janus
Representative at
1-800-525-0020.
We value the trust and confidence you have placed with us and
look forward to continuing our relationship with you.
Sincerely,
Robin C. Beery
Chief Executive Officer and President
Janus Investment Fund
PROSPECTUS/INFORMATION
STATEMENT
[ ,
2012]
Relating to the acquisition of the assets of
JANUS WORLD ALLOCATION FUND
by and in exchange for shares of beneficial interest of
JANUS GLOBAL ALLOCATION FUND MODERATE
each, a series of Janus Investment Fund
151 Detroit Street
Denver, Colorado
80206-4805
1-800-525-0020
INTRODUCTION
This Prospectus/Information Statement is being furnished to
shareholders of Janus World Allocation Fund in connection with
an Agreement and Plan of Reorganization (the Plan),
pursuant to which Janus World Allocation Fund (World
Allocation Fund) will merge into Janus Moderate Allocation
Fund (together with World Allocation Fund, the Funds
and each, a Fund). Under the Plan, shareholders of
World Allocation Fund will receive shares of Janus Moderate
Allocation Fund approximately equal in value to their holdings
in World Allocation Fund as of the closing date of the
reorganization, referred to as the Merger. After the
Merger is complete, World Allocation Fund will be liquidated.
The Merger is expected to be completed on or about
[ ,
2013] (the Closing Date).
Effective
[ ,
2013], Moderate Allocation Fund will change its principal
investment strategies to include an allocation of approximately
40% of its net assets to
non-U.S. investments.
In connection with this change to a global investment strategy,
the Fund will be renamed Janus Global Allocation
Fund Moderate (Moderate Allocation Fund)
and will change its primary benchmark index from the S&P
500®
Index to the Morgan Stanley Capital International
(MSCI) All Country World
Indexsm.
The MSCI All Country World
Indexsm
is an unmanaged, free float-adjusted market capitalization
weighted index that is designed to measure the equity market
performance of global developed and emerging markets. Janus
Moderate Allocation Fund will also change the composition of its
secondary benchmark index, the Moderate Allocation Index, from
an internally-calculated, hypothetical combination of total
returns from the Dow Jones Wilshire 5000 Index (40%), the
Barclays U.S. Aggregate Bond Index (40%), the MSCI
EAFE®
Index (18%), and the MSCI Emerging Markets Free
Indexsm
(2%) to an internally-calculated, hypothetical combination of
total returns from the MSCI All Country World
Indexsm
(60%) and the Barclays Global Aggregate Bond Index (40%).
As part of Moderate Allocation Funds strategy changes, the
Fund will decrease the percentage of its net assets to be
invested in its current equity and fixed-income asset categories
and will add an alternative investments asset
category to its asset allocation. The Funds alternative
investments allocation will initially be achieved by investing
in a new underlying Janus fund, Janus Diversified Alternatives
Fund, which seeks returns uncorrelated with the returns of
stocks and bonds by providing exposure to alternative
investments and alternative investment strategies. The
alternative investments category will also include Janus Global
Real Estate Fund.
The Board of Trustees of Janus Investment Fund (the
Trust) determined that the Merger is in the best
interests of the shareholders of World Allocation Fund and of
Moderate Allocation Fund. The Board of Trustees considered many
factors in making this determination, which are summarized below
in the Q&A section and discussed in detail in this
Prospectus/Information Statement. Among the factors considered,
the Board noted that the Funds share similar investment
objectives and investment strategies and, as a general matter,
the larger combined Fund is expected to have lower total gross
and net operating expenses than World Allocation Fund would have
if it continued to operate as a standalone Fund. In addition,
the Trustees noted that Janus Capital Management LLC
(Janus Capital or Janus) is paying all
costs of the Merger, and the Merger will be treated as a
tax-free transaction for World Allocation Fund and its
shareholders.
Shares of the Funds have not been approved or disapproved by
the SEC nor has the SEC passed upon the accuracy or adequacy of
this Prospectus/Information Statement. Any representation to the
contrary is a criminal offense.
World Allocation Fund and Moderate Allocation Fund are each a
series of the Trust, an open-end, registered management
investment company organized as a Massachusetts business trust.
Janus is responsible for the day-to-day management of World
Allocation Funds and Moderate Allocation Funds
investment portfolios and furnishes continuous advice and
recommendations concerning each Funds investments. Janus
Capital will remain the investment adviser of Moderate
Allocation Fund after the Merger. As one of the larger mutual
fund sponsors in the United States, Janus
sponsored
mutual funds and had approximately
$ billion in assets under
management as of
[ ,
2012]. The Merger is expected to offer shareholders the
potential for increased operational efficiencies while giving
them continued access to Janus experience and resources in
managing mutual funds.
This Prospectus/Information Statement, which you should read
carefully and retain for future reference, sets forth the
information that you should know about World Allocation Fund,
Moderate Allocation Fund, and the Merger. This
Prospectus/Information Statement is being mailed on or about
[ ,
2012.]
Incorporation
by Reference
For more information about the investment objectives,
strategies, restrictions and risks of World Allocation Fund and
Moderate Allocation Fund, see:
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the Moderate Allocation Funds Prospectuses for
Class A Shares, Class C Shares, Class S Shares,
Class I Shares, Class T Shares, and Class D
Shares, each dated October 26, 2012 (File No.
811-01879),
as supplemented;
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the World Allocation Funds Prospectus for Class A
Shares, Class C Shares, Class S Shares, Class I
Shares, and Class T Shares dated October 26, 2012
(File
No. 811-01879);
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the Moderate Allocation Funds Statement of Additional
Information, dated October 26, 2012 (File
No. 811-01879);
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the World Allocation Funds Statement of Additional
Information, dated October 26, 2012 (File
No. 811-01879);
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the Moderate Allocation Funds Annual Report for the fiscal
year ended June 30, 2012 (File
No. 811-01879); and
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the World Allocation Funds Annual Report for the fiscal
year ended June 30, 2012 (File
No. 811-01879).
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These documents have been filed with the U.S. Securities
and Exchange Commission (SEC) and are incorporated
by reference herein as appropriate. World Allocation Funds
Prospectus and its Annual Report and most recent Semiannual
Report have previously been delivered to World Allocation Fund
shareholders.
The Funds provide annual and semiannual reports to their
shareholders that highlight relevant information, including
investment results and a review of portfolio changes. Additional
copies of each Funds most recent annual and semiannual
report are available, without charge, by contacting your plan
sponsor, broker-dealer, or financial intermediary, or by
contacting a Janus representative at 1-877-335-2687. The reports
are also available, without charge, at janus.com/info, or by
sending a written request to the Secretary of the Trust at 151
Detroit Street, Denver, Colorado
80206-4805.
A Statement of Additional Information dated
[ ,
2012] relating to the Merger has been filed with the SEC and is
incorporated by reference into this Prospectus/Information
Statement. You can obtain a free copy of that document by
contacting your plan sponsor, broker-dealer, or financial
intermediary or by contacting a Janus representative at
1-877-335-2687.
The shares of the Funds are not deposits or obligations of,
or guaranteed or endorsed by, any financial institution or the
U.S. Government, are not insured by the Federal Deposit
Insurance Corporation, the Federal Reserve Board or any other
government agency, and involve risk, including the possible loss
of the principal amount invested.
Each Fund is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended, and the Investment
Company Act of 1940, as amended (the 1940 Act), and
files reports, proxy materials, and other information with the
SEC. You may review and copy information about the Funds at the
Public Reference Room of the SEC or get text only copies, after
paying a duplicating fee, by sending an electronic request by
e-mail to
publicinfo@sec.gov or by writing to or calling the
Commissions Public Reference Section,
Washington, D.C.
20549-1520
(1-202-551-8090). Information on the operation of the Public
Reference Room may also be obtained by calling this number. You
may also obtain reports and other information about the Funds
from the Electronic Data Gathering Analysis and Retrieval
(EDGAR) Database on the SECs website at
http://www.sec.gov.
This Prospectus/Information Statement is for informational
purposes only. You do not need to take any action in response to
this Prospectus/Information Statement. We are not asking you for
a proxy or written consent, and you are requested not to send us
a proxy or written consent.
The following chart outlines the impacted share classes and
their respective ticker symbols:
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Fund/Class
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Ticker
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World Allocation Fund
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Class A Shares
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JAMPX
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Class C Shares
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JCMPX
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Class I Shares
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JIMPX
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Class S Shares
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JSMPX
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Class T Shares
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JAMTX
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Moderate Allocation Fund
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Class A Shares
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JMOAX
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Class C Shares
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JMOCX
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Class I Shares
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JMOIX
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Class S Shares
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JMOSX
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Class T Shares
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JSPMX
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PROSPECTUS/INFORMATION
STATEMENT
[ ,
2012]
TABLE OF
CONTENTS
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1
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4
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4
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5
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10
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10
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12
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15
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18
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19
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19
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19
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19
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19
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20
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20
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21
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22
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22
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22
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23
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23
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29
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29
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30
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31
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31
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31
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31
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31
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32
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32
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32
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32
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32
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32
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33
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33
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33
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i
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APPENDICES
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A-1
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B-1
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C-1
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D-1
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E-1
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ii
Q&A / SYNOPSIS
This Prospectus/Information Statement provides a brief overview
of the key features and other matters typically of concern to
shareholders affected by a merger between mutual funds. These
responses are qualified in their entirety by the remainder of
this Prospectus/Information Statement, which you should read
carefully. It contains additional information and further
details regarding the Merger. The description of the Merger is
qualified by reference to the full text of the Plan, which is
attached as Appendix A.
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Q. |
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What is being proposed? |
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A. |
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At a meeting held on November 8, 2012, the Board of
Trustees of the Trust (the Board of Trustees,
Board, or the Trustees) approved the
Plan which authorizes the Merger of World Allocation Fund with
and into Moderate Allocation Fund, with Moderate Allocation Fund
being the surviving entity. World Allocation Fund and Moderate
Allocation Fund are each a series of the Trust and managed by
Janus Capital. The Board of Trustees concluded that the Merger
is in the best interest of the shareholders of both Funds, and
that the interests of shareholders of the Funds will not be
diluted as a result of the Merger. You are receiving this
Prospectus/Information Statement because you are a shareholder
of World Allocation Fund and will be impacted by the Merger.
This Prospectus/Information Statement is being provided to you
for informational purposes only, and you need not take any
action with regard to the Merger. |
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Q. |
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What is happening in the Merger? |
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A. |
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All or substantially all of the assets of World Allocation Fund
will be transferred to Moderate Allocation Fund solely in
exchange for shares of Moderate Allocation Fund with a value
approximately equal to the value of World Allocation Funds
assets net of liabilities, and the assumption by Moderate
Allocation Fund of all liabilities of World Allocation Fund.
Immediately following the transfer, the shares of Moderate
Allocation Fund received by World Allocation Fund will be
distributed pro rata to World Allocation Fund shareholders of
record as of the Closing Date (on or about
[ ,
2013]). After the Merger is completed, World Allocation Fund
will be liquidated. The Merger is conditioned upon receipt of an
opinion of counsel that the Merger qualifies as a tax-free
Merger, and any other conditions as outlined in the Plan. |
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Will I own the same number of shares of Moderate Allocation
Fund as I currently own of World Allocation Fund? |
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Immediately after the Closing Date, World Allocation Fund
investors will own a number of full and fractional shares of
Moderate Allocation Fund approximately equivalent in dollar
value to their shares held in World Allocation Fund as of the
close of business on the Closing Date. You will receive the same
class of shares of Moderate Allocation Fund as the class of
shares of World Allocation Fund you own as of the Merger.
However, the number of shares you receive will depend on the
relative net asset values of the shares of World Allocation Fund
and Moderate Allocation Fund as of the close of trading on the
New York Stock Exchange (NYSE) on the business day
prior to the closing of the Merger. Therefore, although the
dollar value of your shares will be approximately the same, the
number of shares you own may change. |
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What did the Board of Trustees consider in determining that
the Merger is in the best interests of World Allocation Fund? |
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A. |
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The Board of Trustees of the Trust concluded that the Merger is
in the best interests of World Allocation Fund after
consideration of the following factors, among others: |
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The compatibility of the Funds investment objectives,
strategies, and risks and the extent of the overlap of portfolio
holdings between the Funds.
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The portfolio manager that currently manages World Allocation
Fund and Moderate Allocation Fund will continue to manage
Moderate Allocation Fund after the Merger.
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Shareholders of World Allocation Fund will have the opportunity
to invest in a larger Fund with potentially better economies of
scale.
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The impact of the Merger on the fees paid by shareholders in
each share class of each Fund, including the fact that Fund
expenses are expected to be lower for shareholders of World
Allocation Fund and the same for shareholders of Moderate
Allocation Fund after the Merger.
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The Merger, for each Fund and its shareholders, is expected to
be tax-free in nature.
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Janus Capital is paying all costs associated with the Merger.
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The comparative performance of the Funds over various time
periods.
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The benefits of the Merger to Janus and its affiliates,
including, among other things, that Janus may derive greater
operational efficiencies by managing a single fund rather than
two separate funds with substantially similar investment
objectives, strategies, policies, and risks.
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How do the Funds investment objective, strategies, and
risks compare? |
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A. |
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The following summarizes the primary similarities and
differences in the Funds investment objectives, principal
investment strategies, and risks. |
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Similarities: |
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Investment Objective: Both Funds seek a
combination of growth and income. World Allocation Fund seeks
long-term growth of capital with a secondary emphasis on income.
Moderate Allocation Fund seeks total return through growth of
capital and income. |
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Principal Investment Strategies: Each Fund
invests in other Janus mutual funds (underlying
funds) that represent a variety of asset classes and
investment styles. Both World Allocation Fund and Moderate
Allocation Fund invest in a diversified portfolio of underlying
funds that provide exposure to various asset classes, as
described below, and to issuers located throughout the world. |
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Allocation Process: The portfolio manager of
each Fund determines the overall composition of the Fund,
oversees the investment process, and is responsible for the
day-to-day
management of the Fund. The portfolio manager continually
monitors asset class allocations and periodically rebalances the
Funds investments in the underlying funds. The portfolio
manager also regularly reviews the allocation of Fund assets in
the underlying funds and may modify the underlying funds
weightings or substitute other underlying funds to emphasize and
mitigate risk exposures that may arise as a result of the
implementation of the allocations. An independent asset
allocation service provides evaluations of asset allocations
that the portfolio manager may use in implementing the
allocations among the underlying funds. |
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Additionally, the portfolio manager consults with a committee
(Asset Allocation Committee), to regularly review
the broad market, macroeconomic conditions and other global
financial factors that may impact the Funds allocation of
assets among underlying funds and asset classes. The Asset
Allocation Committee is comprised of investment professionals of
Janus Capital and may also include investment professionals of
Janus Capitals affiliated investment advisers. The
portfolio manager and Asset Allocation Committee normally meet
on a quarterly basis. The portfolio manager may change the
Funds asset class allocations, the underlying funds, an
underlying funds asset category, or weightings among asset
classes or underlying funds without prior shareholder notice. |
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Asset Class Allocations: Each Fund
allocates its investments among underlying funds in the same
asset classes, as shown below: |
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Asset Class
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Target Allocation
World Allocation Fund
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Target Allocation
Moderate Allocation Fund
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Equity
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60%
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48.5%
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Bonds
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30%
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33.5%
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Alternatives
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10%
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18.0%
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[Overlap of Underlying Funds: As of September 30,
2012 World Allocation Fund (14 out of 25) and Moderate
Allocation Fund (14 out of 18) invest in 14 of the same
underlying funds.] [To be updated] |
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Primary Benchmark Index: Each Funds
primary benchmark index is the MSCI All Country World
Indexsm. |
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Portfolio Manager: Dan Scherman is the
portfolio manager for both World Allocation Fund and Moderate
Allocation Fund. Mr. Scherman will continue as portfolio
manager of Moderate Allocation Fund after the Merger. |
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Diversification: Each Fund is classified as
diversified, meaning that the Fund may not, with
respect to 75% of its total assets, invest more than 5% of its
total assets in any issuer and may not own more than 10% of the
outstanding voting securities of an issuer. |
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Risks: Each Funds returns will vary, and
you could lose money. Each Fund is subject to allocation risk,
affiliated fund risk, and risks related to investments of the
underlying funds, such as market risk, fixed-income securities
risk, foreign exposure |
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risk, emerging markets risk, mortgage-backed securities risk,
exchange-traded funds risk, exchange-traded notes risk,
sovereign debt risk, and derivatives risk. |
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Differences: |
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Principal Investment Strategies: Moderate
Allocation Fund invests solely in underlying funds. In addition
to underlying funds, World Allocation Fund may invest directly
up to 10% of its net assets in unaffiliated pooled investment
vehicles and derivatives. Within the limits of the Investment
Company Act of 1940, as amended, Moderate Allocation Fund may
invest in such instruments through underlying funds. |
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Risks: In connection with Moderate Allocation
Funds strategy changes described in the
Introduction, the Fund will invest in a new Janus
underlying fund, Janus Diversified Alternatives Fund, which
seeks to provide returns uncorrelated with the returns generated
by investments in stocks and bonds. In addition, as part of its
alternative investments allocation, the Fund may invest in Janus
Global Real Estate Fund. Janus Diversified Alternatives
Funds ability to achieve its investment objective depends
largely upon the successful evaluation of the risk, potential
returns, and correlation properties with respect to its
investments. There is a risk that the returns provided by
alternative investments may be subject to high volatility and
that an underlying funds portfolio managers beliefs
about the risk, expected returns and correlation properties of
one or more of an underlying funds investments may be
incorrect. There is also a risk that an underlying funds
investments will correlate with the performance of stocks and
bonds to a greater degree than anticipated. Janus Capital does
not have prior experience managing the investment strategy of
Janus Diversified Alternatives Fund, and there is no guarantee
that the investment techniques and analysis used by the
underlying funds portfolio managers will produce the
desired results. |
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How do the Funds compare in size? |
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A. |
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As of
[ ,
2012], World Allocation Funds net assets were
approximately [$ million],
and Moderate Allocation Funds net assets were
approximately [$ million].
The asset size of each Fund fluctuates on a daily basis, and the
asset size of Moderate Allocation Fund after the Merger may be
larger or smaller than the combined assets of the Funds as of
[ ,
2012]. More current total net asset information is available at
janus.com/advisor/mutual-funds. |
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Will the Merger result in a higher management fees for
current World Allocation Fund shareholders? |
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A. |
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No. Rather, your Funds management fee rate will
decrease. World Allocation Funds annual management fee
rate is 0.07%, and Moderate Allocation Funds annual
management fee rate is 0.05%. After the Merger, Moderate
Allocation Funds annual management fee rate will remain at
0.05%. |
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Pro forma fee, expense, and other financial information
is included in this Prospectus/Information Statement. |
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Q. |
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Will the Merger result in higher Fund expenses? |
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A. |
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Fund expenses are expected to be lower for shareholders of World
Allocation Fund after the Merger. However, as a result of
Moderate Allocation Funds increased investment in
underlying funds that pursue global and alternative investments
strategies, Moderate Allocation Funds Acquired
Fund Fees and Expenses are expected to increase, as
shown in the pro forma fee, expense, and financial
information included later in this Prospectus/ Information
Statement. |
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Q. |
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What are the federal income tax consequences of the
Merger? |
|
A. |
|
The Merger is expected to qualify as a tax-free transaction for
federal income tax purposes (under section 368(a) of the
Internal Revenue Code of 1986, as amended) and will not take
place unless counsel provides an opinion to that effect.
Shareholders should not recognize any capital gain or loss as a
direct result of the Merger If you choose to redeem or exchange
your shares before or after the Merger, you may realize a
taxable gain or loss; therefore, consider consulting a tax
adviser before doing so. In addition, prior to the Closing Date
you may receive a distribution of ordinary income or capital
gains for World Allocation Fund. |
|
Q. |
|
Will the shareholder services provided by Janus change? |
|
A. |
|
No. Janus currently manages both World Allocation Fund and
Moderate Allocation Fund and will continue as the investment
adviser of Moderate Allocation Fund following the Merger. The
administrator, custodian, transfer agent, and distributor are
the same for the Funds and will not change as a result of the
Merger. Shareholders of World Allocation Fund will also have the
same purchase and redemption privileges as they currently enjoy.
Please consult your financial intermediary for information on
any services provided by them to the Funds. |
3
|
|
|
Q. |
|
Will there be any sales load, commission or other
transactional fee in connection with the Merger? |
|
A. |
|
No. There will be no sales load, commission or other
transactional fee in connection with the Merger. The full and
fractional value of shares of World Allocation Fund will be
exchanged for full and fractional corresponding shares of
Moderate Allocation Fund having approximately equal value,
without any sales load, commission or other transactional fee
being imposed. |
|
Q. |
|
[Can I still add to my existing World Allocation Fund account
until the Merger?] |
|
A. |
|
Yes. World Allocation Fund shareholders may continue to make
additional investments until on or about
[ ,
2012], when the Fund will be closed to new investments to
facilitate the Merger. |
|
Q. |
|
Will I need to open an account in Moderate Allocation Fund
prior to the Merger? |
|
A. |
|
No. An account will be set up in your name, and your shares
of World Allocation Fund will automatically be converted to
corresponding shares of Moderate Allocation Fund. You will
receive confirmation of this transaction following the Merger. |
|
Q. |
|
Will my cost basis change as a result of the Merger? |
|
A. |
|
Your total cost basis is not expected to change as a result of
the Merger. However, since the number of shares you hold after
the Merger may be different than the number of shares you held
prior to the Merger, your average cost basis per share may
change. Since the Merger will be treated as a tax-free
transaction for World Allocation Fund, you should not recognize
any capital gain or loss as a direct result of the Merger. |
|
Q. |
|
Will either Fund pay fees associated with the Merger? |
|
A. |
|
The Funds will not pay any fees of the Merger. Janus will bear
those fees. |
|
Q. |
|
When will the Merger take place? |
|
A. |
|
The Merger will occur on or about
[ ,
2013]. Shortly after completion of the Merger, affected
shareholders will receive a confirmation statement reflecting
their new Fund account number and number of shares owned. |
|
Q. |
|
What if I want to exchange my shares into another Janus fund
prior to the Merger? |
|
A. |
|
You may exchange your shares into another Janus fund before the
Closing Date (on or about
[ ,
2013]) in accordance with your pre-existing exchange privileges
by contacting your plan sponsor, broker-dealer, or financial
intermediary or by contacting a Janus representative at
1-800-525-0020.
If you choose to exchange your shares of World Allocation Fund
for another Janus fund, your request will be treated as a normal
exchange of shares and will be a taxable transaction unless your
shares are held in a tax-deferred account, such as an individual
retirement account (IRA). Exchanges may be subject
to minimum investment requirements. |
|
Q. |
|
Why are shareholders not being asked to vote on the
Merger? |
|
A. |
|
The Investment Company Act of 1940, as amended (the 1940
Act), the law that governs mutual funds, and the
Funds Agreement and Declaration of Trust
(Trust Instrument) each permit mergers of
series of the Trust to occur without seeking a shareholder vote
provided that certain conditions are met, including that the
investment policies of the acquiring fund and acquired fund are
not materially different. The conditions permitting the Merger
to occur without seeking a shareholder vote have been met. |
SUMMARY
OF THE FUNDS
This section provides a summary of each Fund, including but not
limited to, each Funds investment objective, primary
investment strategies, restrictions, fees, and historical
performance. Please note that this is only a brief discussion
and is qualified in its entirety by reference to the complete
information contained herein. There is no assurance that a Fund
will achieve its stated objective.
Investment
Objectives
World Allocation Fund seeks long-term growth of capital with a
secondary emphasis on income. Moderate Allocation Fund seeks
total return through growth of capital and income.
4
Comparison
of Fees and Expenses
The types of expenses currently paid by each class of shares of
World Allocation Fund are the same types of expenses to be paid
by the corresponding share classes of Moderate Allocation Fund.
Currently, the Funds have substantially similar investment
advisory agreements but each pays a different investment
advisory fee rate. The annual investment advisory fee rate
payable under the advisory agreements for World Allocation Fund
and Moderate Allocation Fund are currently 0.07% and 0.05%,
respectively, of the Funds average daily net assets.
Current
and Pro Forma Fees and Expenses
The following tables compare the fees and expenses you may bear
directly or indirectly as an investor in World Allocation Fund
versus Moderate Allocation Fund, and show the projected
(pro forma) estimated fees and expenses of
Moderate Allocation Fund, calculated assuming the Merger had
occurred on June 30, 2012. Fees and expenses shown for
World Allocation Fund and Moderate Allocation Fund were
determined based on each Funds average net assets as of
the fiscal year ended June 30, 2012. The pro forma
fees and expenses are estimated in good faith and are
hypothetical, and do not reflect any change in expense ratios
resulting from a change in assets under management since
June 30, 2012 for either Fund. Total net assets as of these
dates are shown in a footnote to the table. More current total
net asset information is available at
janus.com/advisor/mutual-funds. It is important for you to know
that a decline in a Funds average net assets during the
current fiscal year and after the Merger, as a result of market
volatility or other factors, could cause the Funds expense
ratio to be higher than the fees and expenses shown, which means
you could pay more if you buy or hold shares of the Fund.
Changes in the allocations to the underlying Janus funds can
also result in changes to total expenses. The Funds will not pay
any fees of the Merger.
Annual
Fund Operating Expenses
Annual Fund Operating Expenses are paid out of a
Funds assets and include fees for portfolio management and
administrative services, including recordkeeping, accounting or
subaccounting, and other shareholder services. You do not pay
these fees directly, but as the examples in the tables below
show, these costs are borne indirectly by all shareholders.
The Annual Fund Operating Expenses shown in the table below
represent annualized expenses for World Allocation Fund and for
Moderate Allocation Fund, as well as those estimated for
Moderate Allocation Fund on a pro forma basis, assuming
consummation of the Merger, for the fiscal year ended
June 30, 2012. The pro forma expense information in
the Annual Fund Operating Expenses table below
assumes that Moderate Allocation Fund has an annual fixed
investment advisory fee rate of 0.05% post-Merger. In addition,
the pro forma information below reflects an estimated
increase to Acquired Fund Fees and Expenses for
Moderate Allocation Fund post-Merger that is expected to occur
in connection with certain changes to Moderate Allocation
Funds principal investment strategies and resulting
allocations to underlying funds that pursue global and
alternative investments strategies. Information is not presented
for Class D Shares because World Allocation Fund does not
offer Class D Shares. Acquired Fund Fees and Expenses
for Class D Shares of Moderate Allocation Fund before and
after the Merger are expected to be 0.84%.
Expense
Limitations
Total Annual Fund Operating Expenses After Fee
Waiver shown in the table below include any expense
limitations agreed to by Janus Capital. Currently, through
November 1, 2013, pursuant to a contract between Janus
Capital and World Allocation Fund, Janus Capital reduces its
annual investment advisory fee rate paid by World Allocation
Fund by the amount by which the total annual fund operating
expenses allocated to any class of the Fund exceed 0.45% of
average daily net assets for the fiscal year (after reduction of
any applicable share class level expenses). For purposes of this
waiver, operating expenses do not include any expenses of an
underlying fund (acquired fund fees and expenses), the
distribution and shareholder servicing
(12b-1) fees
(applicable to Class A Shares, Class C Shares, and
Class S Shares), administrative services fees payable
pursuant to the Transfer Agency Agreement (except for networking
and omnibus fees for Class A Shares, Class C Shares,
and Class I Shares), or items not normally considered
operating expenses, such as interest, dividends, taxes,
brokerage commissions and extraordinary expenses (including, but
not limited to, legal claims and liabilities and litigation
costs, and any indemnification related thereto). Janus Capital
has a similar expense limitation agreement for Moderate
Allocation Fund whereby Janus Capital reduces its annual
investment advisory fee rate paid by Moderate Allocation Fund by
the amount by which the total annual fund operating expenses
allocated to any class of the Fund exceed 0.39% of average daily
net assets for the fiscal year (after reduction of any
applicable share class level expenses and excluding the same
expenses noted above). During the period shown in the table
below, Moderate Allocation Funds total annual fund
operating expenses, after reduction of any applicable share
class level expenses, did not exceed 0.39% of average daily net
assets. Therefore, the Fee Waiver amounts shown for Moderate
Allocation Fund pre- and post-Merger are 0.00%.
5
Changes to expenses and asset levels of both World Allocation
Fund and Moderate Allocation Fund at the time of the Merger
could trigger application of Moderate Allocation Funds
0.39% expense limit, resulting in a possible reduction of other
expenses for certain classes and the investment advisory fee
rate payable to Janus Capital by Moderate Allocation Fund.
SHAREHOLDER
FEES
(fees
paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares
|
|
World Allocation
Fund
|
|
Moderate Allocation
Fund
|
|
Moderate Allocation
Fund
Pro Forma
|
|
|
|
|
|
|
|
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price)
|
|
5.75%
|
|
5.75%
|
|
5.75%
|
|
|
|
|
|
|
|
Maximum Deferred Sales Charge (load) (as a percentage of the
lower of original purchase price or redemption proceeds)
|
|
None
|
|
None
|
|
None
|
|
ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the
value of your
investment)(1)
|
|
|
|
|
|
|
|
Management
Fees(2)
|
|
0.07%
|
|
0.05%
|
|
0.05%
|
|
|
|
|
|
|
|
Distribution/Service (12b-1)
Fees(3)
|
|
0.25%
|
|
0.25%
|
|
0.25%
|
|
|
|
|
|
|
|
Other
Expenses(4)
|
|
1.73%
|
|
0.15%
|
|
0.15%
|
|
|
|
|
|
|
|
Acquired Fund Fees and
Expenses(5)
|
|
0.73%
|
|
0.84%
|
|
0.84%
|
|
|
|
|
|
|
|
Total Annual Fund Operating
Expenses(6)
|
|
2.78%
|
|
1.29%
|
|
1.29%
|
|
|
|
|
|
|
|
Fee
Waiver(6)
|
|
1.33%
|
|
0.00%
|
|
0.00%
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee
Waiver(6)
|
|
1.45%
|
|
1.29%
|
|
1.29%
|
|
|
|
|
|
|
|
Class C Shares
|
|
World Allocation
Fund
|
|
Moderate Allocation
Fund
|
|
Moderate Allocation
Fund
Pro Forma
|
|
|
|
|
|
|
|
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price)
|
|
None
|
|
None
|
|
None
|
|
|
|
|
|
|
|
Maximum Deferred Sales Charge (load) (as a percentage of the
lower of original purchase price or redemption proceeds)
|
|
1.00%
|
|
1.00%
|
|
1.00%
|
|
ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the
value of your
investment)(1)
|
|
|
|
|
|
|
|
Management
Fees(2)
|
|
0.07%
|
|
0.05%
|
|
0.05%
|
|
|
|
|
|
|
|
Distribution/Service (12b-1)
Fees(3)
|
|
1.00%
|
|
1.00%
|
|
1.00%
|
|
|
|
|
|
|
|
Other
Expenses(4)
|
|
1.84%
|
|
0.24%
|
|
0.24%
|
|
|
|
|
|
|
|
Acquired Fund Fees and
Expenses(5)
|
|
0.73%
|
|
0.84%
|
|
0.84%
|
|
|
|
|
|
|
|
Total Annual Fund Operating
Expenses(6)
|
|
3.64%
|
|
2.13%
|
|
2.13%
|
|
|
|
|
|
|
|
Fee
Waiver(6)
|
|
1.44%
|
|
0.00%
|
|
0.00%
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee
Waiver(6)
|
|
2.20%
|
|
2.13%
|
|
2.13%
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class S Shares
|
|
World Allocation
Fund
|
|
Moderate Allocation
Fund
|
|
Moderate Allocation
Fund
Pro Forma
|
|
|
|
|
|
|
|
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price)
|
|
None
|
|
None
|
|
None
|
|
|
|
|
|
|
|
Maximum Deferred Sales Charge (load) (as a percentage of the
lower of original purchase price or redemption proceeds)
|
|
None
|
|
None
|
|
None
|
|
ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the
value of your
investment)(1)
|
|
|
|
|
|
|
|
Management
Fees(2)
|
|
0.07%
|
|
0.05%
|
|
0.05%
|
|
|
|
|
|
|
|
Distribution/Service (12b-1)
Fees(3)
|
|
0.25%
|
|
0.25%
|
|
0.25%
|
|
|
|
|
|
|
|
Other
Expenses(4)
|
|
1.96%
|
|
0.33%
|
|
0.33%
|
|
|
|
|
|
|
|
Acquired Fund Fees and
Expenses(5)
|
|
0.73%
|
|
0.84%
|
|
0.84%
|
|
|
|
|
|
|
|
Total Annual Fund Operating
Expenses(6)
|
|
3.01%
|
|
1.47%
|
|
1.47%
|
|
|
|
|
|
|
|
Fee
Waiver(6)
|
|
1.31%
|
|
0.00%
|
|
0.00%
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee
Waiver(6)
|
|
1.70%
|
|
1.47%
|
|
1.47%
|
|
|
|
|
|
|
|
Class I Shares
|
|
World Allocation
Fund
|
|
Moderate Allocation
Fund
|
|
Moderate Allocation
Fund
Pro Forma
|
|
|
|
|
|
|
|
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price)
|
|
None
|
|
None
|
|
None
|
|
|
|
|
|
|
|
Maximum Deferred Sales Charge (load) (as a percentage of the
lower of original purchase price or redemption proceeds)
|
|
None
|
|
None
|
|
None
|
|
ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the
value of your
investment)(1)
|
|
|
|
|
|
|
|
Management
Fees(2)
|
|
0.07%
|
|
0.05%
|
|
0.05%
|
|
|
|
|
|
|
|
Distribution/Service (12b-1)
Fees(3)
|
|
None
|
|
None
|
|
None
|
|
|
|
|
|
|
|
Other
Expenses(4)
|
|
1.76%
|
|
0.16%
|
|
0.16%
|
|
|
|
|
|
|
|
Acquired Fund Fees and
Expenses(5)
|
|
0.73%
|
|
0.84%
|
|
0.84%
|
|
|
|
|
|
|
|
Total Annual Fund Operating
Expenses(6)
|
|
2.56%
|
|
1.05%
|
|
1.05%
|
|
|
|
|
|
|
|
Fee
Waiver(6)
|
|
1.36%
|
|
0.00%
|
|
0.00%
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee
Waiver(6)
|
|
1.20%
|
|
1.05%
|
|
1.05%
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class T Shares
|
|
World Allocation
Fund
|
|
Moderate Allocation
Fund
|
|
Moderate Allocation
Fund
Pro Forma
|
|
|
|
|
|
|
|
Maximum Sales Charge (load) Imposed on Purchases (as a
percentage of offering price)
|
|
None
|
|
None
|
|
None
|
|
|
|
|
|
|
|
Maximum Deferred Sales Charge (load) (as a percentage of the
lower of original purchase price or redemption proceeds)
|
|
None
|
|
None
|
|
None
|
|
ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the
value of your
investment)(1)
|
|
|
|
|
|
|
|
Management
Fees(2)
|
|
0.07%
|
|
0.05%
|
|
0.05%
|
|
|
|
|
|
|
|
Distribution/Service (12b-1)
Fees(3)
|
|
None
|
|
None
|
|
None
|
|
|
|
|
|
|
|
Other
Expenses(4)
|
|
1.89%
|
|
0.34%
|
|
0.34%
|
|
|
|
|
|
|
|
Acquired Fund Fees and
Expenses(5)
|
|
0.73%
|
|
0.84%
|
|
0.84%
|
|
|
|
|
|
|
|
Total Annual Fund Operating
Expenses(6)
|
|
2.69%
|
|
1.23%
|
|
1.23%
|
|
|
|
|
|
|
|
Fee
Waiver(6)
|
|
1.24%
|
|
0.00%
|
|
0.00%
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses After Fee
Waiver(6)
|
|
1.45%
|
|
1.23%
|
|
1.23%
|
|
|
|
|
|
|
|
EXAMPLES:
The following Examples are based on expenses without
waivers. These Examples are intended to help you compare the
cost of investing in World Allocation Fund, Moderate Allocation
Fund before the Merger, and Moderate Allocation Fund after the
Merger with the cost of investing in other mutual funds. The
Examples assume that you invest $10,000 in World Allocation
Fund, Moderate Allocation Fund, and the combined Fund after the
Merger for the time periods indicated and reinvest all dividends
and distributions. The Examples also assume that your investment
has a 5% return each year and that the Funds operating
expenses (including the operating expenses of the underlying
funds) without waivers remain the same. Although your actual
costs may be higher or lower, based on these assumptions your
costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
If Shares are
redeemed:
|
|
1 Year(7)(8)(9)
|
|
3 Years(7)(10)
|
|
5 Years(7)(10)
|
|
10 Years(7)(10)
|
|
Class A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Allocation Fund
|
|
$
|
840
|
|
|
$
|
1,388
|
|
|
$
|
1,960
|
|
|
$
|
3,505
|
|
Moderate Allocation Fund
|
|
$
|
699
|
|
|
$
|
960
|
|
|
$
|
1,242
|
|
|
$
|
2,042
|
|
Moderate Allocation Fund (pro forma assuming consummation
of the Merger)
|
|
$
|
699
|
|
|
$
|
960
|
|
|
$
|
1,242
|
|
|
$
|
2,042
|
|
Class C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Allocation Fund
|
|
$
|
466
|
|
|
$
|
1,114
|
|
|
$
|
1,883
|
|
|
$
|
3,897
|
|
Moderate Allocation Fund
|
|
$
|
316
|
|
|
$
|
667
|
|
|
$
|
1,144
|
|
|
$
|
2,462
|
|
Moderate Allocation Fund (pro forma assuming consummation
of the Merger)
|
|
$
|
316
|
|
|
$
|
667
|
|
|
$
|
1,144
|
|
|
$
|
2,462
|
|
Class S Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Allocation Fund
|
|
$
|
304
|
|
|
$
|
930
|
|
|
$
|
1,582
|
|
|
$
|
3,327
|
|
Moderate Allocation Fund
|
|
$
|
150
|
|
|
$
|
465
|
|
|
$
|
803
|
|
|
$
|
1,757
|
|
Moderate Allocation Fund (pro forma assuming consummation
of the Merger)
|
|
$
|
150
|
|
|
$
|
465
|
|
|
$
|
803
|
|
|
$
|
1,757
|
|
Class I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Allocation Fund
|
|
$
|
259
|
|
|
$
|
796
|
|
|
$
|
1,360
|
|
|
$
|
2,895
|
|
Moderate Allocation Fund
|
|
$
|
107
|
|
|
$
|
334
|
|
|
$
|
579
|
|
|
$
|
1,283
|
|
Moderate Allocation Fund (pro forma assuming consummation
of the Merger)
|
|
$
|
107
|
|
|
$
|
334
|
|
|
$
|
579
|
|
|
$
|
1,283
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
If Shares are
redeemed:
|
|
1 Year(7)(8)(9)
|
|
3 Years(7)(10)
|
|
5 Years(7)(10)
|
|
10 Years(7)(10)
|
|
Class T Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Allocation Fund
|
|
$
|
272
|
|
|
$
|
835
|
|
|
$
|
1,425
|
|
|
$
|
3,022
|
|
Moderate Allocation Fund
|
|
$
|
125
|
|
|
$
|
390
|
|
|
$
|
676
|
|
|
$
|
1,489
|
|
Moderate Allocation Fund (pro forma assuming consummation
of the Merger)
|
|
$
|
125
|
|
|
$
|
390
|
|
|
$
|
676
|
|
|
$
|
1,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
If Shares are not
redeemed:
|
|
1 Year(7)(8)(10)
|
|
3 Years(7)(10)
|
|
5 Years(7)(10)
|
|
10 Years(7)(10)
|
|
Class A Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Allocation Fund
|
|
$
|
840
|
|
|
$
|
1,388
|
|
|
$
|
1,960
|
|
|
$
|
3,505
|
|
Moderate Allocation Fund
|
|
$
|
699
|
|
|
$
|
960
|
|
|
$
|
1,242
|
|
|
$
|
2,042
|
|
Moderate Allocation Fund (pro forma assuming consummation
of the Merger)
|
|
$
|
699
|
|
|
$
|
960
|
|
|
$
|
1,242
|
|
|
$
|
2,042
|
|
Class C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Allocation Fund
|
|
$
|
366
|
|
|
$
|
1,114
|
|
|
$
|
1,883
|
|
|
$
|
3,897
|
|
Moderate Allocation Fund
|
|
$
|
216
|
|
|
$
|
667
|
|
|
$
|
1,144
|
|
|
$
|
2,462
|
|
Moderate Allocation Fund (pro forma assuming consummation
of the Merger)
|
|
$
|
216
|
|
|
$
|
667
|
|
|
$
|
1,144
|
|
|
$
|
2,462
|
|
Class S Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Allocation Fund
|
|
$
|
304
|
|
|
$
|
930
|
|
|
$
|
1,582
|
|
|
$
|
3,327
|
|
Moderate Allocation Fund
|
|
$
|
150
|
|
|
$
|
465
|
|
|
$
|
803
|
|
|
$
|
1,757
|
|
Moderate Allocation Fund (pro forma assuming consummation
of the Merger)
|
|
$
|
150
|
|
|
$
|
465
|
|
|
$
|
803
|
|
|
$
|
1,757
|
|
Class I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Allocation Fund
|
|
$
|
259
|
|
|
$
|
796
|
|
|
$
|
1,360
|
|
|
$
|
2,895
|
|
Moderate Allocation Fund
|
|
$
|
107
|
|
|
$
|
334
|
|
|
$
|
579
|
|
|
$
|
1,283
|
|
Moderate Allocation Fund (pro forma assuming consummation
of the Merger)
|
|
$
|
107
|
|
|
$
|
334
|
|
|
$
|
579
|
|
|
$
|
1,283
|
|
Class T Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Allocation Fund
|
|
$
|
272
|
|
|
$
|
835
|
|
|
$
|
1,425
|
|
|
$
|
3,022
|
|
Moderate Allocation Fund
|
|
$
|
125
|
|
|
$
|
390
|
|
|
$
|
676
|
|
|
$
|
1,489
|
|
Moderate Allocation Fund (pro forma assuming consummation
of the Merger)
|
|
$
|
125
|
|
|
$
|
390
|
|
|
$
|
676
|
|
|
$
|
1,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
All expenses are shown without the
effect of expense offset arrangements. Pursuant to such
arrangements, credits realized as a result of uninvested cash
balances are used to reduce custodian and transfer agent
expenses. The expense information shown for Moderate Allocation
Fund has been restated to reflect estimated fees currently in
effect following implementation of the investment strategy
changes described in the Introduction section of
this Prospectus/Information Statement.
|
(2)
|
|
The Management Fee is
the management fee rate paid by each Fund to Janus under each
Investment Advisory Agreement. Refer to the Management
Expenses section in this Prospectus/Information Statement
for additional information, with further description in the
Funds Statements of Additional Information, which are
incorporated by reference herein.
|
(3)
|
|
If applicable to the share class,
because 12b-1 fees are charged as an ongoing fee, over time the
fee will increase the cost of your investment and may cost you
more than paying other types of sales charges.
Distribution/Service (12b-1) Fees include a shareholder
servicing fee of up to 0.25% for Class C Shares.
|
(4)
|
|
Other Expenses for
Class A Shares, Class C Shares, and Class I
Shares may include administrative fees charged by intermediaries
for the provision of administrative services, including
recordkeeping, subaccounting, order processing for omnibus or
networked accounts, or other shareholder services provided on
behalf of shareholders of the Funds. Other Expenses
for Class S Shares and Class T Shares include an
administrative services fee of 0.25% of the average daily net
assets of each class to compensate Janus Services LLC
(Janus Services), the Funds transfer agent,
for providing, or arranging for the provision by intermediaries
of, administrative services, including recordkeeping,
subaccounting, order processing for omnibus or networked
accounts, or other shareholder services provided on behalf of
retirement plan participants, pension plan participants, or
other underlying investors investing through institutional
channels. Other Expenses for all classes may include
reimbursement to Janus of its
out-of-pocket
costs for services as administrator and to Janus Services of its
out-of-pocket
costs for serving as transfer agent and providing, or arranging
by others the provision of, servicing to shareholders.
|
(5)
|
|
Acquired Fund refers to
any underlying fund (including, but not limited to,
exchange-traded funds) in which a fund invests or has invested
during the period. Acquired fund fees and expenses are indirect
expenses the Fund incurs as a result of investing in shares of
an underlying fund. The Funds Total Annual
Fund Operating Expenses may not correlate to the
ratio of gross expenses to average net assets
presented in the Financial Highlights tables because that ratio
includes only the direct operating expenses incurred by the
Fund, not the indirect costs of investing in Acquired Funds.
Acquired Fund Fees and Expenses are based on the estimated
expenses each Fund expects to incur.
|
9
|
|
|
(6)
|
|
Currently, through at least
November 1, 2013, Janus Capital has contractually agreed to
waive each Funds total annual fund operating expenses
(excluding any expenses of an underlying fund (acquired fund
fees and expenses), the distribution and shareholder servicing
fees, administrative services fees payable pursuant to the
Transfer Agency Agreement (except for networking and omnibus
fees for Class A Shares, Class C Shares, and
Class I Shares), brokerage commissions, interest,
dividends, taxes, and extraordinary expenses) to 0.45% for World
Allocation Fund and 0.39% for Moderate Allocation Fund. The
contractual waiver may be terminated or modified prior to this
date only at the discretion of the Board of Trustees.
|
(7)
|
|
Assumes the payment of the maximum
initial sales charge on Class A Shares at the time of
purchase for the Funds. The sales charge may be waived or
reduced for certain investors, which would reduce the expenses
for those investors.
|
(8)
|
|
A contingent deferred sales charge
of up to 1.00% may be imposed on certain redemptions of
Class A Shares bought without an initial sales charge and
then redeemed within 12 months of purchase. The contingent
deferred sales charge is not reflected in the Examples.
|
(9)
|
|
A contingent deferred sales charge
of 1.00% generally applies on Class C Shares redeemed
within 12 months of purchase. The contingent deferred sales
charge may be waived for certain investors, as described in
Appendix C.
|
(10)
|
|
Contingent deferred sales charge is
not applicable.
|
Portfolio
Turnover
Each Fund pays transaction costs, such as commissions, when it
buys and sells securities (or turns over its
portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the Examples,
affect the Funds performance. During the fiscal year ended
June 30, 2012, World Allocation Funds portfolio
turnover rate was 36% of the average value of its portfolio and
Moderate Allocation Funds portfolio turnover rate was 18%
of the average value of its portfolio.
Principal
Investment Strategies
Each Fund pursues its investment objective by allocating its
investments among various underlying funds. The following chart
compares the Funds overall investment strategies.
|
|
|
World Allocation Fund
|
|
Moderate Allocation
Fund
|
|
The Fund pursues its investment objective by
investing in a diversified portfolio of other Janus mutual funds
(underlying funds) and securities that provide
exposure to issuers located throughout the world. Through its
investment in the underlying funds, the Fund invests in issuers
from several different countries, including the United States,
and may, under unusual circumstances, be invested in a single
country. The Fund may also have significant exposure to emerging
markets. Because it invests in other funds, the Fund is
considered a fund of funds. The Fund utilizes Janus
Capitals proprietary process to allocate assets across the
following three asset categories (as defined by Janus
Capital):
Core The
Core category seeks to provide market-like exposure by investing
in funds that in turn primarily invest in a broad range of
traditional asset classes such as large-, mid-, and small-cap
stocks, U.S. and
non-U.S.
stocks, growth and value stocks, and investment-grade bonds.
While not a primary strategy, the underlying funds may also
invest in emerging market stocks and high-yield bonds. A primary
goal of the underlying funds in the Core category is to provide
shareholders with access to a broad range of investable assets
in proportion to each asset class representation in
todays global, integrated market as determined by Janus
Capital.
Alpha The
Alpha category seeks to generate
higher-than-market
returns on a risk-adjusted basis by investing in funds that in
turn invest in a broad range of traditional asset classes such
as large-, mid-, and small-cap stocks, U.S. and
non-U.S.
stocks, growth and value stocks, emerging market stocks,
investment-grade bonds, and high-yield
|
|
The Fund seeks to achieve its investment objective
by investing in other Janus mutual funds (underlying
funds) that represent a variety of asset classes and
investment styles and provide exposure to issuers located
throughout the world. Through its investments in underlying
funds, the Fund invests in issuers from several different
countries and may, under unusual circumstances, be invested in a
single country. The Fund normally will have approximately 40% of
its net assets allocated to non-U.S. investments. The Fund may
also have significant exposure to emerging markets.
The Fund pursues this objective by investing in a
diversified portfolio of underlying funds, resulting in an
allocation of the Funds investments that normally provides
exposure of approximately 48.5% to equity investments, 33.5% to
fixed-income securities and money market securities, and 18% to
alternative investments. The Funds target allocations are
45-60% in equity securities, 30-45% in fixed income securities
and money market instruments, and 5-20% in alternatives.
The Fund achieves it investment allocations through
investment in underlying Janus Funds. Initially, the Fund will
obtain alternatives exposure through investment in a new Janus
fund, Janus Diversified Alternatives Fund, which pursues its
investment objective by investing in a diverse group of return
drivers (risk premia) across equity, fixed income,
commodity, and currency asset classes. Janus Diversified
Alternatives Fund seeks to generate returns by identifying and
isolating diverse sources of potential risk premia and combining
these individual risk premia into a liquid portfolio that
delivers consistent, absolute returns with a low correlation to
the returns generated by investments in stocks and bonds.
|
10
|
|
|
World Allocation Fund
|
|
Moderate Allocation
Fund
|
|
bonds. Unlike funds in the Core category, the Alpha category is
less focused on the asset class composition of the global
market. Instead, the Alpha category is comprised of funds,
unconstrained by asset class or investment style, that Janus
Capital believes may generate
higher-than-market
returns over a market cycle.
Alternative The Alternative category is
comprised of non-traditional investments with historically low
correlation to the assets in the Core and Alpha
categories, such as certain exchange-traded funds
(ETFs), exchange-traded notes (ETNs),
investments with hedge fund strategy exposure,
commodities-related securities, real estate-related securities,
and structured products.
|
|
The target allocation and the allocation of the
Funds assets among underlying funds are based on
quantitative and qualitative analysis. Because it invests in
other funds, the Fund is considered a fund of funds.
|
|
|
|
The Fund attempts to maximize returns by investing
the Funds assets in underlying funds investing in stocks
(U.S. and
non-U.S.),
bonds, cash equivalents, alternative asset classes (such as real
estate-related securities and commodity-related securities), and
alternative investment strategies (such as leveraged and
sector-based strategies). The target allocation of the
Funds assets among underlying funds is based on an
optimization process that utilizes quantitative analysis of a
number of factors, such as historical risk, performance, fund
classifications, and the relationship among underlying funds, as
well as the portfolio managers judgment. Janus Capital
analyzes Fund allocations on a regular basis in order to
integrate current market data and reallocates on a quarterly
basis.
|
|
The Funds asset allocation is intended to
diversify investments throughout the world among stocks, bonds,
money market instruments, and alternatives. The portfolio
manager, in collaboration with an independent asset allocation
service, regularly reviews the allocation of Fund assets in the
underlying funds and may modify the underlying funds
weightings or substitute other underlying funds to emphasize and
mitigate risk exposures that may arise as a result of the
implementation of the allocations.
|
|
|
|
The Funds portfolio manager determines the
overall composition of the Fund, oversees the investment
process, and is responsible for the
day-to-day
management of the Fund. The portfolio manager consults with a
committee comprised of Janus Capital investment professionals
(Asset Allocation Committee) to regularly review the
process and the allocation of the Funds assets among the
underlying funds to determine modifications to the underlying
funds asset categories and/or weightings, or to substitute
other underlying funds to emphasize and mitigate risk exposures
that may arise as a result of the implementation of the
allocations. The portfolio manager and Asset Allocation
Committee normally review asset allocations on a quarterly
basis. The portfolio manager oversees the implementation of
trades on behalf of the Fund.
|
|
The portfolio manager of the Fund determines the
overall composition of the Fund, oversees the investment
process, and is responsible for the day-to-day management of the
Fund. The portfolio manager continually monitors asset class
allocations and periodically rebalances the Funds
investments in the underlying funds. The portfolio manager also
regularly reviews the allocation of Fund assets in the
underlying funds and may modify the underlying funds
weightings or substitute other underlying funds to emphasize and
mitigate risk exposures that may arise as a result of the
implementation of the allocations. An independent asset
allocation service provides evaluations of asset allocations
that the portfolio manager may use in implementing the
allocations among the underlying funds.
|
|
|
|
The Funds investments will be rebalanced to
the identified optimal weightings on a quarterly basis, although
more frequent changes can occur. The Funds asset class or
category, category allocations, underlying funds, or underlying
fund weightings may change without prior shareholder notice.
|
|
Additionally, the portfolio manager consults with a
committee, which is comprised of investment professionals of
Janus Capital, and may also include investment professionals of
Janus Capitals affiliated investment advisers (Asset
Allocation Committee), to regularly review the broad
market, macroeconomic conditions and other global financial
factors that may impact the Funds allocation of assets
among underlying funds and asset classes. The portfolio manager
and Asset
|
11
|
|
|
World Allocation Fund
|
|
Moderate Allocation
Fund
|
|
|
|
Allocation Committee normally meet on a quarterly basis. The
portfolio manager may change the Funds asset class
allocations, the underlying funds, an underlying funds
asset category, or weightings among asset classes or underlying
funds without prior shareholder notice.
|
|
|
|
The Fund will normally allocate approximately 90%
of its assets to Janus-managed mutual funds and approximately
10% to unaffiliated pooled investment vehicles (e.g., ETFs) and
derivatives. For information on the potential underlying Janus
funds currently available for investment by the Fund, including
investment objectives and strategies, see Investment
Objectives and Strategies of the Underlying Funds in
Appendix D.
|
|
The Fund will normally allocate approximately 48.5%
of its investments to underlying funds that provide varying
exposure to common stocks of large U.S.-based companies, small-
to mid- capitalization companies, and international companies
(including those with exposure to emerging markets),
approximately 33.5% of its investments to underlying bond funds
and money market instruments, and approximately 18% of its
investments to underlying funds that focus on alternatives.
Refer to Appendix D in this Prospectus/Information
Statement for a brief description of the investment strategies
of each of the currently available underlying funds.
|
|
|
|
The Fund may invest in ETFs and ETNs to complement
its investment in the underlying funds if there are asset
classes not covered by the underlying funds or to better manage
cash positions.
|
|
Through its investments in underlying funds, the
Fund may invest in ETFs and ETNs.
|
|
|
|
The Fund may invest its assets in derivatives,
which are instruments that have a value derived from or directly
linked to an underlying asset, such as equity securities, bonds,
commodities, currencies, interest rates, or market indices, as
substitutes for securities in which the Fund invests. The Fund
may invest in derivative instruments (by taking long and/or
short positions) including, but not limited to, swap agreements
to earn income and enhance uncorrelated returns, to increase or
decrease exposure to a particular market, to manage or adjust
the risk profile of the Fund, or as alternatives to direct
investments. For more information on the Funds use of
derivatives, refer to the Funds shareholder reports and
Form N-Q
reports, which are filed with the SEC.
|
|
Through its investments in underlying funds, the
Fund may invest its assets in derivatives, which are instruments
that have a value derived from or directly linked to an
underlying asset, such as equity securities, bonds, commodities,
currencies, interest rates, or market indices, as substitutes
for securities in which the Fund invests. The Funds may
invest through underlying funds in derivative instruments (by
taking long and/or short positions) including, but not limited
to, swap agreements to earn income and enhance uncorrelated
returns, to increase or decrease exposure to a particular
market, to manage or adjust the risk profile of the Fund, or as
alternatives to direct investments. For more information on the
Funds use of derivatives, refer to the Funds
shareholder reports and Form N-Q reports, which are filed with
the SEC.
|
|
|
|
When market conditions dictate a more defensive
strategy, the Fund or an underlying fund may temporarily hold
cash or invest its assets in temporary investments. In that
case, the Fund may take positions that are inconsistent with its
investment objective. As a result, the Fund may not achieve its
investment objective.
|
|
Same
|
Principal
Investment Risks
The following is a summary of the principal risks associated
with investing in each Fund. Both Funds invest in underlying
funds. The risks of investing in the Funds are tied to the
securities in which the underlying funds invest. In addition,
World Allocation Fund may invest directly up to 10% of its net
assets in unaffiliated pooled investment vehicles, such as
exchange-traded funds, and derivatives; Moderate Allocation Fund
will have exposure to such instruments as part of its
alternatives investment allocation. The biggest risk of
investing in the Funds is that the Funds and the
underlying funds returns will vary, and you could lose
money. The additional risks discussed below are described in
greater detail later in this Prospectus/Information Statement
under Additional Information about the Funds
Risks of the Funds and Underlying Funds. The fact that a
particular risk is not
12
identified does not mean that a Fund as part of its overall
investment strategy does not invest in, or is precluded from
investing in, securities that give rise to that risk.
Allocation Risk. A Funds ability
to achieve its investment objective depends largely upon the
portfolio managers allocation of assets among the
underlying funds
and/or
unaffiliated pooled investment vehicles and derivatives. You
could lose money on your investment in the Fund as a result of
these allocations. A Fund will typically invest in a number of
different underlying funds; however, to the extent that a Fund
invests a significant portion of its assets in a single
underlying fund, it will be more sensitive to the risks
associated with that fund and any investments in which that fund
concentrates.
Derivatives Risk. World Allocation Fund
and certain underlying funds in which each Fund invests may
invest in derivatives. Derivatives can be highly volatile and
involve risks in addition to the risks of the underlying
referenced securities. Gains or losses from a derivative
investment can be substantially greater than the
derivatives original cost, and can therefore involve
leverage. Leverage may cause the Funds to be more volatile than
if they had not used leverage. Derivatives can be less liquid
than other types of investments and entail the risk that the
counterparty will default on its payment obligations.
Commodity-Linked Investments
Risk. World Allocation Fund and certain of
the underlying funds in which each Fund invests may include
derivative investments that have exposure to the commodities
markets. This exposure may subject the Fund to greater
volatility than investments in traditional securities. The value
of a commodity-linked derivative investment typically is based
upon the price movements of a physical commodity (such as
heating oil, livestock, or agricultural products), a commodity
futures contract or commodity index, or some other readily
measurable economic variable. The value of commodity-linked
derivative instruments may therefore be affected by changes in
overall market movements, volatility of the underlying
benchmark, changes in interest rates, or other factors affecting
a particular industry or commodity such as drought, floods,
weather, livestock disease, embargoes, tariffs, and
international economic, political, and regulatory developments.
Exchange-Traded Funds Risk. World
Allocation Fund and the underlying funds in which each Fund
invests may purchase shares of ETFs to gain exposure to a
particular portion of the market. ETFs are pooled investment
vehicles, which may be managed or unmanaged, that generally seek
to track the performance of a specific index. ETFs are traded on
an exchange at market prices that may vary from the net asset
value of their underlying investments. When the Fund invests in
an ETF, in addition to directly bearing the expenses associated
with its own operations, it will bear a pro rata portion of the
ETFs expenses. ETFs have certain inherent risks generally
associated with investments in a portfolio of securities in
which the ETF is invested, including the risk that the general
level of stock prices may decline, thereby adversely affecting
the value of each unit of the ETF. ETFs also involve the risk
that an active trading market for an ETFs shares may not
develop or be maintained.
Alternative Investments Allocation
Risk. In connection with the Moderate
Allocation Funds allocation to alternative investments,
the Fund will invest in a new Janus underlying fund, Janus
Diversified Alternatives Fund, which seeks to provide returns
having low correlation to the returns generated by investments
in stocks and bonds. In addition, as part of its alternative
investments allocation, the Fund may invest in Janus Global Real
Estate Fund. Janus Diversified Alternatives Funds ability
to achieve its investment objective depends largely upon the
successful evaluation of the risk, potential returns, and
correlation properties with respect to its investments. There is
a risk that the returns provided by alternative investments may
be subject to high volatility and that an underlying funds
portfolio managers beliefs about the risk, expected
returns and correlation properties of one or more of an
underlying funds investments may be incorrect. There is
also a risk that an underlying funds investments will
correlate with the performance of stocks and bonds to a greater
degree than anticipated. Janus Capital does not have prior
experience managing the investment strategy of Janus Diversified
Alternatives Fund, and there is no guarantee that the investment
techniques and analysis used by the underlying funds
portfolio managers will produce the desired results. All of
these factors may negatively affect your investment in the Fund
and you could lose money. Investment in this underlying fund
also involves derivatives, counterparty, leverage, real
estate-related and commodity-linked investment risks as
described above and in the Additional Information About
the Funds Risks of the Funds section.
Affiliated Fund Risk. Janus has
the authority to select and substitute the underlying affiliated
mutual funds in which the Funds may invest. The fees paid to
Janus Capital by other Janus mutual funds are higher than the
fees paid to Janus Capital by the Funds or by other funds and
share classes available for investment by the Funds. These
conditions may create a conflict of interest when selecting
underlying affiliated mutual funds and share classes for
investment. However, Janus Capital is a fiduciary to each Fund
and its shareholders and is legally obligated to act in each
Funds shareholders best interest when selecting
underlying affiliated mutual funds.
Market Risk. The Funds, through the
underlying funds investments in equity securities, are
subject to the risks associated with investments in common
stocks, which tend to be more volatile than many other
investment choices. The value of an underlying
13
funds portfolio may decrease if the value of an individual
company or security, or multiple companies or securities, in the
portfolio decreases or if a portfolio managers belief
about a companys intrinsic worth is incorrect. Further,
regardless of how well individual companies or securities
perform, the value of an underlying funds portfolio could
also decrease if there are deteriorating economic or market
conditions. It is important to understand that the value of your
investment may fall, sometimes sharply, in response to changes
in the market, and you could lose money.
Fixed-Income Securities Risk. Through a
Funds investments in underlying funds holding fixed-income
securities, the Fund is subject to the risks associated with
investments in a variety of fixed-income securities, which may
be less volatile than underlying funds that invest most of their
assets in common stocks. However, returns and yields will vary,
and you could lose money. Typically, the values of fixed-income
securities change inversely with prevailing interest rates.
Therefore, a fundamental risk of fixed-income securities is
interest rate risk, which is the risk that their value will
generally decline as prevailing interest rates rise, which may
cause an underlying funds net asset value to likewise
decrease. How specific fixed-income securities may react to
changes in interest rates will depend on the specific
characteristics of each security. Fixed-income securities are
also subject to credit risk, prepayment risk, valuation risk,
and liquidity risk. Credit risk is the risk that the credit
strength of an issuer of a fixed-income security will weaken
and/or that
the issuer will be unable to make timely principal and interest
payments and that the security may go into default. Prepayment
risk is the risk that during periods of falling interest rates,
certain fixed-income securities with higher interest rates, such
as mortgage- and asset-backed securities, may be prepaid by
their issuers thereby reducing the amount of interest payments.
Valuation risk is the risk that one or more of the fixed-income
securities in which an underlying fund invests are priced
incorrectly due to factors such as incomplete data, market
instability, or human error. Liquidity risk is the risk that
fixed-income securities may be difficult or impossible to sell
at the time that an underlying funds portfolio manager
would like or at the price that the portfolio manager believes
the security is currently worth. The Funds may have exposure to
high-yield/high-risk securities through the underlying
funds investments in such securities. High-yield/high-risk
securities may be more sensitive to economic changes, political
changes, or adverse developments specific to the issuer, which
may adversely affect the value of the underlying funds
investments in such securities.
Foreign Exposure Risk. Each Fund and
certain underlying funds in which either Fund may invest will
have significant exposure to foreign markets as a result of
their investments in foreign securities, including investments
in emerging markets, which can be more volatile than the
U.S. markets. As a result, each Funds and the
underlying funds returns and net asset value may be
affected to a large degree by fluctuations in currency exchange
rates or political or economic conditions in a particular
country. A market swing in one or more countries or regions
where the Fund or an underlying fund has invested a significant
amount of its assets may have a greater effect on the
Funds or an underlying funds performance than it
would in a more geographically diversified portfolio. Each
Funds or an underlying funds investments in emerging
market countries may involve risks greater than, or in addition
to, the risks of investing in more developed countries.
Emerging Markets Risk. The risks of
foreign investing mentioned above are heightened when investing
in emerging markets. Emerging markets securities involve a
number of additional risks, which may result from 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. In
addition, each Funds or an underlying 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 or an underlying funds investments. To the
extent that a Fund or an underlying 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 a Funds
performance. Some of the risks of investing directly in foreign
and emerging market securities may be reduced when a Fund or an
underlying fund invests indirectly in foreign securities through
various other investment vehicles including derivatives, which
involve other risks.
Mortgage-Backed Securities Risk. Some
of the underlying funds in which the Funds can invest may invest
in mortgage-backed securities. Mortgage-backed securities tend
to be more sensitive to changes in interest rates than other
types of securities. Investments in mortgage-backed securities
are subject to both extension risk, where borrowers extend the
duration of their mortgages in times of rising interest rates,
and prepayment risk, where borrowers pay off their mortgages
sooner than expected in times of declining interest rates. These
risks may reduce the Funds returns. In addition,
investments in mortgage-backed securities, including those
comprised of subprime mortgages, may be subject to a higher
degree of credit risk, valuation risk, and liquidity risk than
various other types of fixed-income securities.
14
Sovereign Debt Risk. An underlying fund
in which the Funds invest may invest in U.S. and foreign
government debt securities (sovereign debt).
Investments in U.S. sovereign debt are considered low risk.
However investments in
non-U.S. sovereign
debt can involve a high degree of risk, including the risk that
the governmental entity that controls the repayment of sovereign
debt may not be willing or able to repay the principal
and/or to
pay the interest on its sovereign debt in a timely manner.
An investment in a Fund is not a bank deposit and is not
insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
Comparison
of Fund Performance
World
Allocation Fund
The following information provides some indication of the risks
of investing in the Fund by showing how the Funds
performance has varied over time. Class I Shares,
Class A Shares, Class C Shares, and Class S
Shares of the Fund commenced operations on July 6, 2009,
after the reorganization of each corresponding class of shares
of Janus Adviser Modular Portfolio
Construction®
Fund (JAD predecessor fund) into each respective
share class of the Fund. Class T Shares of the Fund
commenced operations on July 6, 2009.
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The performance shown for Class I Shares, Class A
Shares, Class C Shares, and Class S Shares for periods
prior to July 6, 2009, reflects the historical performance
of the JAD predecessor funds Class I Shares,
Class A Shares, Class C Shares and Class S Shares
prior to the reorganization, calculated using the fees and
expenses of each respective share class of the JAD predecessor
fund, net of any applicable fee and expense limitations or
waivers.
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|
The performance shown for Class T Shares for periods prior
to July 6, 2009, reflects the historical performance of the
JAD predecessor funds Class I Shares prior to the
reorganization, calculated using the fees and expenses of
Class T Shares, without the effect of any fee and expense
limitations or waivers.
|
If Class T Shares of the Fund had been available during
periods prior to July 6, 2009, the performance shown may
have been different. The performance shown for periods following
the Funds commencement of Class I Shares,
Class A Shares, Class C Shares, Class S Shares,
and Class T Shares reflects the fees and expenses of each
respective share class, net of any applicable fee and expense
limitations or waivers.
The bar chart depicts the change in performance from year to
year during the periods indicated. Performance information for
each underlying fund is available in its prospectus
and/or the
most recent annual or semiannual report. The bar chart figures
do not include any applicable sales charges that an investor may
pay when they buy or sell Class A Shares or Class C
Shares of the Fund. If sales charges were included, the returns
would be lower. The table compares the Funds average
annual returns for the periods indicated to broad-based
securities market indices. The indices are not actively managed
and are not available for direct investment. All figures assume
reinvestment of dividends and distributions. For certain
periods, the Funds performance reflects the effect of
expense waivers. Without the effect of these expense waivers,
the performance shown would have been lower.
World Allocation Funds past performance (before and
after taxes) does not necessarily indicate how the Fund will
perform in the future. Updated performance information is
available at janus.com/advisor/mutual-funds or by calling
1-877-335-2687.
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Annual Total Returns for Class I Shares (calendar
year-end)
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2009
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2010
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2011
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|
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28.87%
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11.54%
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−8.00%
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Best Quarter: Second Quarter
2009 14.90% Worst
Quarter: Third Quarter
2011 −13.38%
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The Funds year-to-date return as of the calendar quarter
ended September 30, 2012 was 8.19%.
15
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Average Annual Total Returns (periods ended 12/31/11)
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1 Year
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Since
Inception
of Predecessor Fund
(9/3/08)
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Class I Shares
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Return Before Taxes
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−8.00%
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0.06%
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Return After Taxes on Distributions
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−9.03%
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−0.71%
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Return After Taxes on Distributions and Sale of
Fund Shares(1)
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−4.11%
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−0.15%
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Morgan Stanley
Capital International All Country World
Indexsm
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|
−7.35%
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−0.71%
|
|
(net of foreign withholding taxes)
(reflects no deduction for expenses, fees, or taxes, except
foreign withholding taxes)
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World Allocation Index
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−2.72%
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2.25%
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|
(reflects no deduction for expenses, fees, or taxes)
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Class A Shares
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Return Before
Taxes(2)
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−13.24%
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|
|
−1.79%
|
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|
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|
|
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|
|
|
|
Morgan Stanley
Capital International All Country World
Indexsm
|
|
|
−7.35%
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|
|
−0.71%
|
|
(net of foreign withholding taxes)
(reflects no deduction for expenses, fees, or taxes, except
foreign withholding taxes)
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|
World Allocation Index
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−2.72%
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|
|
2.25%
|
|
(reflects no deduction for expenses, fees, or taxes)
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Class C Shares
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Return Before
Taxes(3)
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|
−9.46%
|
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|
|
−0.62%
|
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|
|
|
|
|
|
|
|
|
Morgan Stanley
Capital International All Country World
Indexsm
|
|
|
−7.35%
|
|
|
|
−0.71%
|
|
(net of foreign withholding taxes)
(reflects no deduction for expenses, fees, or taxes, except
foreign withholding taxes)
|
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|
|
|
|
|
|
|
|
|
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|
|
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|
World Allocation Index
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−2.72%
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|
2.25%
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|
(reflects no deduction for expenses, fees, or taxes)
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Class S Shares
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Return Before Taxes
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−8.07%
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|
−0.19%
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|
Morgan Stanley
Capital International All Country World
Indexsm
|
|
|
−7.35%
|
|
|
|
−0.71%
|
|
(net of foreign withholding taxes)
(reflects no deduction for expenses, fees, or taxes, except
foreign withholding taxes)
|
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|
|
|
|
|
|
|
|
|
|
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|
World Allocation Index
|
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−2.72%
|
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2.25%
|
|
(reflects no deduction for expenses, fees, or taxes)
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Class T Shares
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Return Before Taxes
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−7.87%
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0.03%
|
|
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|
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|
|
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|
Morgan Stanley
Capital International All Country World
Indexsm
|
|
|
−7.35%
|
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|
|
−0.71%
|
|
(net of foreign withholding taxes)
(reflects no deduction for expenses, fees, or taxes, except
foreign withholding taxes)
|
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|
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|
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|
World Allocation Index
|
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−2.72%
|
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2.25%
|
|
(reflects no deduction for expenses, fees, or taxes)
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(1)
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If the Fund incurs a loss, which generates a tax benefit, the
Return After Taxes on Distributions and Sale of Fund Shares may
exceed the Funds other return figures.
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(2)
|
Calculated assuming maximum permitted sales loads.
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(3)
|
The one year return is calculated to include the contingent
deferred sales charge.
|
Moderate
Allocation Fund
The following information provides some indication of the risks
of investing in the Fund by showing how the Funds
performance has varied over time. Class T Shares (formerly
named Class J Shares, the initial share class) of the Fund
commenced operations with the Funds inception.
Class A Shares, Class C Shares, Class S Shares,
and Class I Shares of the Fund commenced operations on
July 6, 2009.
16
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The performance shown for Class T Shares is calculated
using the fees and expenses of Class T Shares in effect
during the periods shown, net of any applicable fee and expense
limitations or waivers.
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|
The performance shown for Class A Shares, Class C
Shares, and Class S Shares for periods prior to
July 6, 2009, reflects the performance of the Funds
former Class J Shares, calculated using the fees and
expenses of each respective share class, without the effect of
any fee and expense limitations or waivers.
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|
The performance shown for Class I Shares 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.
|
If Class A Shares, Class C Shares, Class S
Shares, and Class I Shares of the Fund had been available
during periods prior to July 6, 2009, the performance shown
for each respective share class may have been different. The
performance shown for periods following the Funds
commencement of Class A Shares, Class C Shares,
Class S Shares, and Class I Shares reflects the fees
and expenses of each respective share class, net of any
applicable fee and expense limitations or waivers.
The bar chart depicts the change in performance from year to
year during the periods indicated. Performance information for
each underlying fund is available in its prospectus
and/or the
most recent annual or semiannual report. The bar chart figures
do not include any applicable sales charges that an investor may
pay when they buy or sell Class A Shares or Class C
Shares of the Fund. If sales charges were included, the returns
would be lower. The table compares the Funds average
annual returns for the periods indicated to broad-based
securities market indices. The indices are not actively managed
and are not available for direct investment. All figures assume
reinvestment of dividends and distributions. For certain
periods, the Funds performance reflects the effect of
expense waivers. Without the effect of these expense waivers,
the performance shown would have been lower.
Moderate Allocation Funds past performance (before and
after taxes) does not necessarily indicate how the Fund will
perform in the future. Updated performance information is
available at janus.com/advisor/mutual-funds or by calling
1-877-335-2687.
|
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|
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|
|
Annual Total Returns for Class T Shares (calendar
year-end)
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|
2006
|
|
2007
|
|
2008
|
|
2009
|
|
2010
|
|
2011
|
|
|
|
|
|
|
|
|
14.28%
|
|
12.71%
|
|
−25.28%
|
|
30.34%
|
|
12.19%
|
|
−2.61%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Best Quarter: Second Quarter
2009 14.27% Worst
Quarter: Fourth Quarter
2008 −11.62%
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Funds year-to-date return as of the calendar quarter
ended September 30, 2012 was 10.26%.
|
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|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (periods ended 12/31/11)
|
|
|
|
1 Year
|
|
|
|
5 Years
|
|
|
|
Since
Inception
(12/30/05)
|
|
Class T Shares
|
|
|
|
|
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|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
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|
|
Return Before Taxes
|
|
|
−2.61%
|
|
|
|
3.70%
|
|
|
|
5.39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return After Taxes on Distributions
|
|
|
−3.32%
|
|
|
|
2.81%
|
|
|
|
4.55%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return After Taxes on Distributions and Sale of
Fund Shares(1)
|
|
|
−1.57%
|
|
|
|
2.71%
|
|
|
|
4.22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSCI All
Country World
Indexsm
|
|
|
−7.35%
|
|
|
|
−1.93%
|
|
|
|
1.56%
|
|
(reflects no deduction for expenses, fees, or taxes)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moderate Allocation Index
|
|
|
−2.07%
|
|
|
|
1.80%
|
|
|
|
3.90%
|
|
(reflects no deduction for expenses, fees, or taxes)
|
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|
|
|
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Annual Total Returns (periods ended 12/31/11)
|
|
|
|
1 Year
|
|
|
|
5 Years
|
|
|
|
Since
Inception
(12/30/05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares
|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
Return Before
Taxes(2)
|
|
|
−8.26%
|
|
|
|
2.33%
|
|
|
|
4.19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSCI All
Country World
Indexsm
|
|
|
−7.35%
|
|
|
|
−1.93%
|
|
|
|
1.56%
|
|
(reflects no deduction for expenses, fees, or taxes, except
foreign withholding taxes)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moderate Allocation Index
|
|
|
−2.07%
|
|
|
|
1.80%
|
|
|
|
3.90%
|
|
(reflects no deduction for expenses, fees, or taxes, except any
applicable foreign withholding taxes)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return Before
Taxes(3)
|
|
|
−4.34%
|
|
|
|
2.80%
|
|
|
|
4.46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSCI All
Country World
Indexsm
|
|
|
−7.35%
|
|
|
|
−1.93%
|
|
|
|
1.56%
|
|
(reflects no deduction for expenses, fees, or taxes, except
foreign withholding taxes)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moderate Allocation Index
|
|
|
−2.07%
|
|
|
|
1.80%
|
|
|
|
3.90%
|
|
(reflects no deduction for expenses, fees, or taxes, except any
applicable foreign withholding taxes)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class S Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return Before Taxes
|
|
|
−2.93%
|
|
|
|
3.30%
|
|
|
|
4.97%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSCI All
Country World
Indexsm
|
|
|
−7.35%
|
|
|
|
−1.93%
|
|
|
|
1.56%
|
|
(reflects no deduction for expenses, fees, or taxes, except
foreign withholding taxes)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moderate Allocation Index
|
|
|
−2.07%
|
|
|
|
1.80%
|
|
|
|
3.90%
|
|
(reflects no deduction for expenses, fees, or taxes, except any
applicable foreign withholding taxes)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return Before Taxes
|
|
|
−2.47%
|
|
|
|
3.70%
|
|
|
|
5.39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSCI All
Country World
Indexsm
|
|
|
−7.35%
|
|
|
|
−1.93%
|
|
|
|
1.56%
|
|
(reflects no deduction for expenses, fees, or taxes, except
foreign withholding taxes)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moderate Allocation Index
|
|
|
−2.07%
|
|
|
|
1.80%
|
|
|
|
3.90%
|
|
(reflects no deduction for expenses, fees, or taxes, except any
applicable foreign withholding taxes)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
If the Fund incurs a loss, which generates a tax benefit, the
Return After Taxes on Distributions and Sale of Fund Shares may
exceed the Funds other return figures.
|
(2)
|
Calculated assuming maximum permitted sales loads.
|
(3)
|
The one year return is calculated to include the contingent
deferred sales charge.
|
For World Allocation Fund, after-tax returns are calculated
using distributions for the Funds Class I Shares for
periods following July 6, 2009; and for the JAD predecessor
funds Class I Shares for periods prior to
July 6, 2009. For Moderate Allocation Fund, after-tax
returns are calculated using distributions for the Funds
Class T Shares (formerly named Class J Shares, the
initial share class). After-tax returns are calculated using the
historically highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on your individual tax situation
and may differ from those shown in the preceding table. The
after-tax return information shown above does not apply to Fund
shares held through a tax-deferred account, such as a 401(k)
plan or an IRA.
After-tax returns are only shown for Class I Shares of
World Allocation Fund and Class T Shares of Moderate
Allocation Fund. After-tax returns for the other classes of
shares will vary from those shown due to varying sales charges
(as applicable), fees, and expenses among the classes.
Management
of the Funds
Investment Adviser: Janus Capital is
the investment adviser for each Fund and will remain the
investment adviser of Moderate Allocation Fund after the Merger.
Portfolio Manager: Daniel G. Scherman,
CFA, is Executive Vice President and Portfolio Manager of each
Fund and will continue as portfolio manager of Moderate
Allocation Fund after the Merger.
18
Purchase
and Sale of Fund Shares
Minimum
Investment Requirements*
|
|
|
|
|
Class A Shares, Class C Shares**, Class S
Shares, and Class T Shares
|
|
|
|
|
|
|
|
|
|
Non-retirement accounts
|
|
$
|
2,500
|
|
|
|
|
|
|
Certain tax-deferred accounts or UGMA/UTMA accounts
|
|
$
|
500
|
|
|
|
|
|
|
Class I Shares
|
|
|
|
|
|
|
|
|
|
Institutional investors (investing directly with Janus)
|
|
$
|
1,000,000
|
|
|
|
|
|
|
Through an intermediary institution
|
|
|
|
|
non-retirement accounts
|
|
$
|
2,500
|
|
certain tax-deferred accounts or UGMA/UTMA accounts
|
|
$
|
500
|
|
|
|
|
|
|
|
|
|
*
|
|
Exceptions to these minimums may
apply for certain tax-deferred, tax-qualified and retirement
plans, and accounts held through certain wrap programs.
|
**
|
|
The maximum purchase in
Class C Shares is $500,000 for any single purchase.
|
With the exception of certain Class I Shares shareholders,
purchases, exchanges, and redemptions can generally be made only
through institutional channels, such as financial intermediaries
and retirement platforms. Class I Shares may be purchased
directly with the Funds in certain circumstances as outlined in
Appendix C. You should contact your financial
intermediary or refer to your plan documents for information on
how to invest in a Fund. Requests must be received in good order
by the Fund or its agents (financial intermediary or plan
sponsor, if applicable) prior to the close of the regular
trading session of the New York Stock Exchange in order to
receive that days net asset value. For additional
information, refer to Purchases,
Exchanges,
and/or
Redemptions in Appendix C.
Tax
Information
Each Funds distributions are taxable, and will be taxed as
ordinary income or capital gains, unless you are investing
through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of a Fund through a broker-dealer or
other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of Fund
shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson to recommend the Fund over
another investment or to recommend one share class over another.
THE
MERGER
The
Plan
The Plan sets forth the terms and conditions under which the
Merger will be implemented. Significant provisions of the Plan
are summarized below; however, this summary is qualified in its
entirety by reference to the Plan, which is attached hereto as
Appendix A.
The Plan contemplates: (i) Moderate Allocation Funds
acquisition of all or substantially all of the assets of World
Allocation Fund in exchange solely for shares of Moderate
Allocation Fund and the assumption by Moderate Allocation Fund
of all of World Allocation Funds liabilities, if any, as
of the Closing Date; (ii) the distribution on the Closing
Date of those shares to the shareholders of World Allocation
Fund; and (iii) the complete liquidation of World
Allocation Fund.
The value of World Allocation Funds assets to be acquired
and the amount of its liabilities to be assumed by Moderate
Allocation Fund and the net asset value (NAV) of a
share of World Allocation Fund will be determined as of the
close of regular trading on the NYSE on the Closing Date, after
the declaration by World Allocation Fund of distributions, if
any on the Closing Date, and will be determined in accordance
with the valuation methodologies described in World Allocation
Funds currently effective Prospectus and Statement of
Additional Information (SAI). The Plan provides that
Janus Capital will pay all of the fees of the Merger, including
the costs and expenses incurred in the preparation and mailing
of this Prospectus/Information Statement. The Closing Date is
expected to be on or about
[ ,
2013].
As soon as practicable after the Closing Date, World Allocation
Fund will distribute pro rata to its shareholders of record the
shares of Moderate Allocation Fund it receives in the Merger, so
that each shareholder of World Allocation Fund will receive a
number of full and fractional shares of Moderate Allocation Fund
approximately equal in value to his or her holdings in World
Allocation Fund, and World Allocation Fund will be liquidated.
19
Such distribution will be accomplished by opening accounts on
the books of Moderate Allocation Fund in the names of World
Allocation Fund shareholders and by transferring to those
accounts the shares of Moderate Allocation Fund previously
credited to the account of World Allocation Fund on those books.
Each shareholder account will be credited with the pro rata
number of Moderate Allocation Funds shares due to that
shareholder. All issued and outstanding shares of World
Allocation Fund will simultaneously be canceled on the books of
the Trust. Accordingly, immediately after the Merger, each
former shareholder of World Allocation Fund will own shares of
Moderate Allocation Fund that will be approximately equal to the
value of that shareholders shares of World Allocation Fund
as of the Closing Date. Any special options will automatically
transfer to the new fund accounts.
The implementation of the Merger is subject to a number of
conditions set forth in the Plan. The Plan also requires receipt
of a tax opinion indicating that, for federal income tax
purposes, the Merger qualifies as a tax-free Merger. The Plan
may be terminated and the Merger abandoned at any time prior to
the Closing Date by the Board of Trustees if the Trustees
determine that the Merger is not in the best interests of the
Funds shareholders. Please review the Plan carefully.
Reasons
for the Merger
As discussed in the Introduction, after the repositioning of
Moderate Allocation Fund to include increased allocations to
non-U.S. investments
and a new allocation to alternative investments, World
Allocation Fund and Moderate Allocation Fund will have
substantially similar investment strategies. Therefore, the
Merger allows Janus to reorganize its mutual fund platform by
consolidating similar Funds. Janus believes that these efforts
will provide the potential for both meaningful short-and
long-term benefits to Fund shareholders, including clearer
product differentiation, a reduction in overlapping offerings,
and a resulting larger, more stable asset base. The Funds have
similar investment objectives, principal investment strategies,
policies and risks. There is potential to increase operational
efficiencies, including the potential to eliminate duplicative
costs and other inefficiencies that can arise from having
comparable mutual funds in the same family of funds. Janus and
its affiliates that provide services to the Funds expect to
provide the same level of services to shareholders after the
Merger.
Janus met with the Trustees, none of whom are considered
interested persons (as defined in the 1940 Act)
(Independent Trustees), on October 4, 2012 and
November 8, 2012 to discuss Janus proposal to merge
the Funds. The Independent Trustees also discussed this proposal
and the Plan 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.
At the meeting of the Board of Trustees of the Trust held on
November 8, 2012, the Trustees approved the Plan after
determining that (1) the Merger is in the best interests of
World Allocation Fund and Moderate Allocation Fund; and
(2) the Merger will not dilute the interests of existing
shareholders of either Fund. In making these determinations, the
Trustees considered the following factors, among others:
|
|
|
|
|
The compatibility of the Funds investment objectives,
strategies, and risks and the extent of the overlap of portfolio
holdings between the Funds.
|
|
|
The portfolio manager that currently manages World Allocation
Fund and Moderate Allocation Fund will continue to manage
Moderate Allocation Fund after the Merger.
|
|
|
Shareholders of World Allocation Fund will have the opportunity
to invest in a larger Fund with potentially better economies of
scale.
|
|
|
The impact of the Merger on the fees paid by shareholders in
each share Class of each Fund, including the fact that Fund
expenses are expected to be lower for shareholders of World
Allocation Fund and remain the same for shareholders of Moderate
Allocation Fund after the Merger.
|
|
|
The Merger, for each Fund and its shareholders, is expected to
be tax-free in nature.
|
|
|
Janus is paying all costs associated with the Merger.
|
|
|
The comparative performance of the Funds over various time
periods.
|
|
|
The benefits of the Merger to Janus and its affiliates,
including, among other things, that Janus may derive greater
operational efficiencies by managing a single fund rather than
two separate funds with substantially similar investment
objectives, strategies, policies and risks.
|
Federal
Income Tax Consequences
As a condition to the Merger, the Trust will receive a legal
opinion from
[ ],
special counsel to Janus, subject to customary assumptions and
representations, on the basis of the existing provisions of the
Internal Revenue Code of 1986, as
20
amended (the Code), the Treasury Regulations
promulgated thereunder and current administrative and judicial
interpretations thereof, for federal income tax purposes
substantially to the effect that:
|
|
|
|
|
the transfer of all or substantially all of the assets of World
Allocation Fund solely in exchange for shares of Moderate
Allocation Fund and the assumption by Moderate Allocation Fund
of all liabilities of World Allocation Fund, and the
distribution of such shares to the shareholders of World
Allocation Fund, will constitute a reorganization
within the meaning of Section 368(a) of the Code;
|
|
|
no gain or loss will be recognized by World Allocation Fund on
the transfer of the assets of World Allocation Fund to Moderate
Allocation Fund in exchange for Moderate Allocation Fund shares
or the assumption by Moderate Allocation Fund of all liabilities
of World Allocation Fund or upon the distribution of Moderate
Allocation Fund shares to World Allocation Fund shareholders in
exchange for their shares of World Allocation Fund, except that
World Allocation Fund may be required to recognize gain or loss
with respect to contracts described in Section 1256(b) of
the Code or stock in a passive foreign investment company, as
defined in Section 1297(a) of the Code;
|
|
|
the tax basis of World Allocation Funds assets acquired by
Moderate Allocation Fund will be the same to Moderate Allocation
Fund as the tax basis of such assets to World Allocation Fund
immediately prior to the Merger, and the holding period of the
assets of World Allocation Fund in the hands of Moderate
Allocation Fund will include the period during which those
assets were held by World Allocation Fund;
|
|
|
no gain or loss will be recognized by Moderate Allocation Fund
upon the receipt of the assets of World Allocation Fund solely
in exchange for Moderate Allocation Fund shares and the
assumption by Moderate Allocation Fund of all liabilities of
World Allocation Fund;
|
|
|
no gain or loss will be recognized by shareholders of World
Allocation Fund upon the receipt of Moderate Allocation Fund
shares by such shareholders, provided such shareholders receive
solely Moderate Allocation Fund shares (including fractional
shares) in exchange for their World Allocation Fund
shares; and
|
|
|
the aggregate tax basis of Moderate Allocation Fund shares,
including any fractional shares, received by each shareholder of
World Allocation Fund pursuant to the Merger will be the same as
the aggregate tax basis of World Allocation Fund shares held by
such shareholder immediately prior to the Merger, and the
holding period of Moderate Allocation Fund shares, including
fractional shares, to be received by each shareholder of World
Allocation Fund will include the period during which World
Allocation Fund shares exchanged were held by such shareholder
(provided that World Allocation Fund shares were held as a
capital asset on the Closing Date).
|
The receipt of such an opinion is a condition to the
consummation of the Merger. The Trust has not obtained an
Internal Revenue Service (IRS) private letter ruling
regarding the federal income tax consequences of the Merger, and
the IRS is not bound by advice of counsel. If the transfer of
the assets of World Allocation Fund in exchange for Moderate
Allocation Fund shares and the assumption by Moderate Allocation
Fund of all liabilities of World Allocation Fund does not
constitute a tax-free Merger, each World Allocation Fund
shareholder generally will recognize a gain or loss
approximately equal to the difference between the value of
Moderate Allocation Fund shares such shareholder acquires and
the tax basis of such shareholders World Allocation Fund
shares.
Prior to the Closing Date, World Allocation Fund may pay to its
shareholders a cash distribution consisting of any undistributed
investment company taxable income
and/or any
undistributed realized net capital gains, including any gains
realized from any sales of assets prior to the Closing Date,
which may be attributable to portfolio transitioning. This
distribution would be taxable to shareholders that are subject
to tax.
Shareholders of World Allocation Fund should consult their tax
advisers regarding the effect, if any, of the Merger in light of
their individual circumstances. Since the foregoing discussion
relates only to the federal income tax consequences of the
Merger, shareholders of World Allocation Fund should also
consult tax advisers as to state and local tax consequences, if
any, of the Merger.
Securities
to Be Issued, Key Differences in Shareholder Rights
World Allocation Fund and Moderate Allocation Fund are each
organized as separate series of the Trust, a Massachusetts
business trust, and are governed by the same Trust Instrument
and Bylaws. As such, there are no key differences in the rights
of shareholders of the Funds.
All shares of a fund within the Trust participate equally in
dividends and other distributions by the shares of the same
class of that fund, and in residual assets of that class of that
fund in the event of liquidation. Shares of each Fund have no
preemptive, conversion, or appraisal rights. Shares of all funds
in the Trust have noncumulative voting rights, which means the
holders of more than 50% of the value of shares of all funds of
the Trust voting for the election of Trustees can elect 100% of
the Trustees if they
21
choose to do so. Shares of a fund may be transferred by
endorsement or stock power as is customary, but a fund is not
bound to recognize any transfer until it is recorded on its
books. The Funds have the right to redeem, at the then current
NAV, the shares of any shareholder whose account does not meet
certain minimum requirements as described in
Appendix C.
Capitalization
The following table shows, the capitalization as of
June 30, 2012 for World Allocation Fund and Moderate
Allocation Fund, as well as pro forma capitalization
giving effect to the Merger:
[To be updated]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moderate
|
|
|
|
|
|
|
Moderate
|
|
|
|
|
|
Allocation Fund
|
|
|
|
World Allocation
|
|
|
Allocation Fund
|
|
|
|
|
|
(pro forma after
|
|
|
|
Fund
|
|
|
(Pre-Merger)
|
|
|
Adjustments(1)
|
|
|
Merger)
|
Class A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class S
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Class I
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Net Assets
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Net Asset Value Per Share
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Shares Outstanding
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Class T
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Net Assets
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Net Asset Value Per Share
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Shares Outstanding
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Total Net Assets
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Total Shares Outstanding
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(1)
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An Adjustment is the
difference between Moderate Allocation Funds net asset
value and World Allocation Funds net asset value and the
resulting share adjustments that will be processed in order to
maintain the appropriate market value of Moderate Allocation
Fund at the adjusted net asset value.
|
ADDITIONAL
INFORMATION ABOUT THE FUNDS
Additional
Investment Strategies and General Portfolio Policies
The Funds Board of Trustees may change each Funds
investment objective or non-fundamental principal investment
strategies without a shareholder vote. A Fund will notify you in
writing at least 60 days before making any such change it
considers material. If there is a material change to a
Funds objective or principal investment strategies, you
should consider whether the Fund remains an appropriate
investment for you. There is no guarantee that a Fund will
achieve its investment objective.
Unless otherwise stated, the following additional investment
strategies and general policies apply to each Fund and the
underlying funds. Some strategies and policies may be a part of
a Funds principal strategy. Other strategies and policies
may be utilized to a lesser extent.
Cash
Position
Each Fund may temporarily increase its cash position under
certain unusual circumstances, such as to protect its assets or
maintain liquidity in certain circumstances to meet unusually
large redemptions. The Funds cash position may also
increase
22
temporarily due to unusually large cash inflows. Under unusual
circumstances such as these, the Fund may invest up to 100% of
its assets in cash or similar investments. In this case, the
Fund may take positions that are inconsistent with its
investment objective. As a result, the Fund may not achieve its
investment objective. To the extent the Fund invests its
uninvested cash through a sweep program (meaning its uninvested
cash is pooled with uninvested cash of other funds and invested
in certain securities such as repurchase agreements), it is
subject to the risks of the account or fund into which it is
investing, including liquidity issues that may delay the Fund
from accessing its cash.
Portfolio
Turnover
Each Fund normally seeks long-term investment, although the Fund
may sell shares of the underlying funds regardless of how long
they have been held. Portfolio turnover is affected by the
optimization process, market conditions, changes in the size of
the Fund, the nature of the Funds investments, and the
judgment of the portfolio manager. Changes are normally made in
the Funds holdings whenever the optimization process
suggests a change or the portfolio manager believes such changes
are desirable. Portfolio turnover rates are generally not a
factor in making decisions regarding asset allocations among the
underlying funds. The Funds transactions in the underlying
funds do not entail brokerage commissions, but may result in
taxable capital gains. The Financial Highlights
section of this Prospectus shows the Funds historical
turnover rates.
Fundamental
Investment Restrictions
Each Fund has certain additional fundamental investment
restrictions that can only be changed with shareholder approval.
The funds have substantially similar fundamental investment
restrictions. Please see each Funds SAI for further
information relating to those investment restrictions, each of
which is incorporated by reference into this
Prospectus/Information Statement and the SAI dated
[ ,
2012], related to this Merger.
Risks of
the Funds
Similar
Risk Factors of the Funds and Underlying Funds
The value of your investment will vary over time, sometimes
significantly, and you may lose money by investing in the Funds.
Each Fund intends to allocate assets among underlying funds that
invest in stocks, bonds, and alternative strategy investments,
and may invest in money market instruments or cash/cash
equivalents, while also making efforts to minimize risk exposure
within the selection of investments in a variety of Janus funds.
The allocation of the Funds assets to certain asset
classes, asset categories, and underlying funds may not be
successful in achieving the Funds objective. There is a
risk that you may achieve lower returns by investing in the Fund
instead of investing directly in an underlying fund. The
Funds returns are directly related to the aggregate
performance and expenses of the underlying funds in which it
invests. Certain of the underlying funds in which the Fund may
invest have operated for shorter time periods and therefore have
limited investment results, smaller asset bases, and estimated
expense ratios. Investments by the Fund in such an underlying
fund may increase the indirect expenses paid by the Fund and may
result in the Fund not achieving its investment objective.
There is additional risk for the Funds with respect to
aggregation of holdings of underlying funds. The aggregation of
holdings of underlying funds may result in the Fund indirectly
having concentrated assets in a particular industry,
geographical sector, or single company. Such indirect
concentrated holdings may have the effect of increasing the
volatility of the Funds returns. The Fund does not control
the investments of the underlying funds, and any indirect
concentration occurs as a result of the underlying funds
following their investment objectives.
Each Fund is an actively managed investment portfolio and is
therefore subject to the risk that the investment strategies
employed for the Fund may fail to produce the intended results.
The Fund may underperform its benchmark index or other mutual
funds with similar investment objectives.
Janus manages many funds and numerous other accounts, which may
include separate accounts and other pooled investment vehicles,
such as hedge funds.
Side-by-side
management of multiple accounts, including the management of a
cash collateral pool for securities lending and investing the
Janus funds cash, may give rise to conflicts of interest
among those accounts, and may create potential risks, such as
the risk that investment activity in one account may adversely
affect another account. For example, short sale activity in an
account could adversely affect the market value of long
positions in one or more other accounts (and vice versa).
Side-by-side
management may raise additional potential conflicts of interest
relating to the allocation of investment opportunities and the
aggregation and allocation of trades. Additionally, because
Janus is the adviser to the Fund and the underlying funds, it is
subject to certain potential conflicts of interest when
allocating the assets of the Fund among underlying funds. The
officers and Trustees of the Fund may also serve in the same
capacity as officers and Trustees of the underlying funds.
Conflicts may arise as the officers and Trustees seek to fulfill
their fiduciary responsibilities to both the Fund and the
underlying funds.
23
Purchases and redemptions of an underlying fund by the Fund due
to reallocations or rebalancing may result in an underlying fund
having to sell securities or invest cash when it otherwise would
not do so. Such transactions could accelerate the realization of
taxable income if sales of securities resulted in gains and
could also increase an underlying funds transaction costs.
Large redemptions by the Fund may cause an underlying
funds expense ratio to increase due to a resulting smaller
asset base. A further discussion of potential conflicts of
interest and a discussion of certain procedures intended to
mitigate such potential conflicts are contained in the
Funds SAI.
The Fund invests in underlying funds that may invest
substantially all of their assets in common stocks. The main
risk associated with investing in those funds is the risk that
the value of the stocks they hold might decrease in response to
the activities of an individual company or in response to
general market
and/or
economic conditions. If this occurs, an underlying funds
share price may also decrease.
An underlying funds performance may also be significantly
affected, positively or negatively, by a portfolio
managers use of certain types of investments, such as
foreign
(non-U.S.)
securities, derivative investments, exchange-traded funds,
noninvestment grade bonds (junk bonds), initial
public offerings (IPOs), or securities of companies
with relatively small market capitalizations. Note that a
portfolio managers use of IPOs and other types of
investments may have a magnified performance impact on an
underlying fund with a small asset base and the underlying fund
may not experience similar performance as its assets grow.
The following information is intended to help you better
understand some of the risks of investing in the Fund. The
impact of the following risks on the Fund may vary depending on
the Funds investment allocation. The greater the
Funds allocation to an underlying fund or investment, the
greater the Funds exposure to the risks associated with
that underlying fund or investment. Before investing in the
Fund, you should consider carefully the risks that you assume
when investing in the Fund.
Bank Loan Risk. Bank loans are
obligations of companies or other entities entered into in
connection with recapitalizations, acquisitions, and
refinancings. Certain underlying funds may invest in bank loans.
An underlying funds investments in bank loans are
generally acquired as a participation interest in, or assignment
of, loans originated by a lender or other financial institution.
These investments may include institutionally-traded floating
and fixed-rate debt securities. Participation interests and
assignments involve credit, interest rate, and liquidity risk.
In addition, the bank loans underlying these securities often
involve borrowers with low credit ratings whose financial
conditions are troubled or uncertain, including companies that
are highly leveraged or in bankruptcy proceedings.
Collateral Risk. With respect to
collateral received in repurchase transactions or other
investments, an underlying fund may have significant exposure to
financial services, mortgage markets, and government agencies
not secured by the full faith and credit of the United States.
Such exposure, depending on market conditions, could have a
negative impact on an underlying fund, including minimizing the
value of any collateral.
Commodity-Linked Derivative Investment
Risk. Certain underlying funds may invest in
derivatives that have exposure to the commodities markets. This
exposure may subject a Fund to greater volatility than
investments in traditional securities. The value of a
commodity-linked derivative investment typically is based upon
the price movements of a physical commodity (such as heating
oil, livestock, or agricultural products), a commodity futures
contract or commodity index, or some other readily measurable
economic variable. The value of commodity-linked derivative
instruments may therefore be affected by changes in overall
market movements, volatility of the underlying benchmark,
changes in interest rates, or other factors affecting a
particular industry or commodity such as drought, floods,
weather, livestock disease, embargoes, tariffs, and
international economic, political, and regulatory developments.
Concentration Risk. An underlying fund
may focus its investments in related industry groups. Because of
this, companies in its portfolio may share common
characteristics and react similarly to market developments. For
example, many companies with a life science orientation are
highly regulated and may be dependent upon certain types of
technology. As a result, changes in government funding or
subsidies, new or anticipated legislative changes, or
technological advances could affect the value of such companies
and, therefore, the underlying funds net asset value. In
addition, an underlying fund that concentrates its assets in the
real estate and real estate-related industries will be closely
linked to performance of the real estate markets. Unanticipated
economic, legal, cultural, political, or other developments may
cause property values to decline, real estate investment trust
(REIT) prices may drop, and changes in federal or
state tax laws may affect the value of the securities held by an
underlying fund. Real estate-related companies are also
generally sensitive to interest rates, cash flow of underlying
real estate assets, supply and demand, and management skill and
creditworthiness of the issuer. As a result, such underlying
funds may be subject to greater risks and their net asset value
may fluctuate more than a fund that does not concentrate its
investments.
24
Counterparty Risk. Certain derivative
and over-the-counter instruments, such as swaps and
forwards, are subject to the risk that the other party to a
contract will not fulfill its contractual obligations.
Credit Quality Risk. Through the
Funds investments in underlying funds holding fixed-income
securities, the Fund is subject to the risks associated with the
credit quality of the issuers of those fixed-income securities.
Credit quality measures the likelihood that the issuer or
borrower will meet its obligations on a bond. One of the
fundamental risks for an underlying fund is credit risk, which
is the risk that an issuer will be unable to make principal and
interest payments when due, or default on its obligations.
Higher credit risk may negatively impact an underlying
funds returns and yield. U.S. Government securities
are generally considered to be the safest type of investment in
terms of credit risk. Municipal obligations generally rank
between U.S. Government securities and corporate debt
securities in terms of credit safety. Corporate debt securities,
particularly those rated below investment grade, present the
highest credit risk.
Many fixed-income securities receive credit ratings from
services such as Standard & Poors, Fitch, and
Moodys. These services assign ratings to securities by
assessing the likelihood of issuer default. The lower a bond
issue is rated by an agency, the more credit risk it is
considered to represent. Lower rated instruments and securities
generally pay interest at a higher rate to compensate for the
associated greater risk. Interest rates can fluctuate in
response to economic or market conditions, which can result in a
fluctuation in the price of a security and impact your return
and yield. If a security has not received a rating, an
underlying fund must rely upon Janus Capitals credit
assessment, which if incorrect can also impact the underlying
funds returns and yield. Please refer to the
Explanation of Rating Categories section of the SAI
for a description of bond rating categories.
Derivatives Risk. World Allocation Fund
and certain underlying funds invested in by either Fund may
invest in derivatives. Derivatives can be highly volatile and
involve risks in addition to the risks of the underlying
referenced securities. Gains or losses from a derivative can be
substantially greater than the derivatives original cost,
and can therefore involve leverage. Derivatives can be complex
instruments and may involve analysis that differs from that
required for other investment types used by the Fund or an
underlying fund. If the value of a derivative does not correlate
well with the particular market or other asset class to which
the derivative is intended to provide exposure, the derivative
may not produce the anticipated result. Derivatives can also
reduce the opportunity for gain or result in losses by
offsetting positive returns in other investments. Derivatives
can be less liquid than other types of investments and entail
the risk that the counterparty will default on its payment
obligations. If the counterparty to a derivative transaction
defaults, the Fund or an underlying fund would risk the loss of
the net amount of the payments that it contractually is entitled
to receive. To the extent the Fund or an underlying fund enters
into short derivative positions, the Fund or underlying fund may
be exposed to risks similar to those associated with short
sales, including the risk that the Fund or underlying
funds losses are theoretically unlimited.
Emerging Markets Risk. Within the
parameters of its specific investment policies, each Fund and an
underlying fund may invest in securities of issuers or companies
from or with exposure to one or more developing
countries or emerging markets. Such countries
include, but are not limited to, countries included in the MSCI
Emerging Markets
Indexsm.
For the underlying Janus Emerging Markets Fund, such countries
include any country that has been determined by an international
organization, such as the World Bank, to have a low to middle
income economy
and/or any
country that is not included in the Morgan Stanley Capital
International World
Indexsm,
which measures the equity market performance of developed
markets. To the extent that the Fund or an underlying 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 price of investments in emerging markets can
experience 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 than in more developed
markets, 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, seizure,
nationalization, or creation of government monopolies, any of
which may have a detrimental effect on the Funds or an
underlying funds investments. The securities markets of
many of the countries in which the Fund or an underlying fund
may invest may also be smaller, less liquid, and subject to
greater price volatility than those in the United States. In the
event of a default on any investments in foreign debt
obligations, it may be more difficult for the Fund or an
underlying fund to obtain or to enforce a judgment against the
issuers of such securities. In addition, the Funds or an
underlying 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 or the underlying
funds investments. To the extent that the Fund or an
underlying 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 or underlying funds performance.
The Fund or an underlying fund may be subject to emerging
markets risk to the extent
25
that it invests in securities of issuers or companies which are
not considered to be from emerging markets, but which have
customers, products, or transactions associated with emerging
markets. Some of the risks of investing directly in foreign and
emerging market securities may be reduced when the Fund or an
underlying fund invests indirectly in foreign securities through
various other investment vehicles including derivatives, which
also involve other risks.
Fixed-Income Securities Risk. Through
the Funds investments in underlying funds holding
fixed-income securities, the Fund is subject to the risks
associated with investments in a variety of fixed-income
securities, which may be less volatile than underlying funds
that invest most of their assets in common stocks; returns and
yields will vary, and you could lose money. Typically, the
values of fixed-income securities change inversely with
prevailing interest rates. Therefore, a fundamental risk of
fixed-income securities is interest rate risk, which is the risk
that their value will generally decline as prevailing interest
rates rise, which may cause an underlying funds net asset
value to likewise decrease. How specific fixed-income securities
may react to changes in interest rates will depend on the
specific characteristics of each security. For example, while
securities with longer maturities tend to produce higher yields,
they also tend to be more sensitive to changes in prevailing
interest rates and are therefore more volatile than shorter-term
securities and are subject to greater market fluctuations as a
result of changes in interest rates. Fixed-income securities are
also subject to credit risk, which is the risk that the credit
strength of an issuer of a fixed-income security will weaken
and/or that
the issuer will be unable to make timely principal and interest
payments and that the security may go into default. In addition,
there is prepayment risk, which is the risk that during periods
of falling interest rates, certain fixed-income securities with
higher interest rates, such as mortgage- and asset-backed
securities, may be prepaid by their issuers thereby reducing the
amount of interest payments. This may result in an underlying
fund having to reinvest its proceeds in lower yielding
securities. Fixed-income securities may also be subject to
valuation risk and liquidity risk. Valuation risk is the risk
that one or more of the fixed-income securities in which an
underlying fund is invested are priced incorrectly due to
factors such as incomplete data, market instability, or human
error. Liquidity risk is the risk that fixed-income securities
may be difficult or impossible to sell at the time that an
underlying fund would like or at the price that a portfolio
manager believes the security is currently worth. Securities
underlying mortgage- and asset-backed securities, which may
include subprime mortgages, also may be subject to a higher
degree of credit risk, valuation risk, and liquidity risk.
Foreign Exposure Risk. The Funds may
have significant exposure to foreign markets as a result of the
underlying funds investments in foreign securities,
including investments in emerging markets, which can be more
volatile than the U.S. markets. As a result, the
Funds and an underlying funds returns and net asset
value may be affected to a large degree by fluctuations in
currency exchange rates or political or economic conditions in a
particular country. In some foreign markets, there may not be
protection against failure by other parties to complete
transactions. It may not be possible for an underlying fund to
repatriate capital, dividends, interest, and other income from a
particular country or governmental entity. In addition, a market
swing in one or more countries or regions where the Fund or an
underlying fund has invested a significant amount of its assets
may have a greater effect on the Funds or an underlying
funds performance than it would in a more geographically
diversified portfolio. To the extent the Fund or an underlying
fund invests in foreign debt securities, such investments are
sensitive to changes in interest rates. Additionally,
investments in securities of foreign governments involve the
risk that a foreign government may not be willing or able to pay
interest or repay principal when due. The Funds or an
underlying funds investments in emerging market countries
may involve risks greater than, or in addition to, the risks of
investing in more developed countries.
Growth Securities Risk. Certain
underlying funds invest in companies after assessing their
growth potential. Securities of companies perceived to be
growth companies may be more volatile than other
stocks and may involve special risks. If a portfolio
managers perception of a companys growth potential
is not realized, the securities purchased may not perform as
expected, reducing the underlying funds returns. In
addition, because different types of stocks tend to shift in and
out of favor depending on market and economic conditions,
growth stocks may perform differently from the
market as a whole and other types of securities.
High-Yield/High-Risk Bond Risk. A
high-yield/high-risk bond (also called a junk bond)
is a bond rated below investment grade by major rating agencies
(i.e., BB+ or lower by Standard & Poors Ratings
Services (Standard & Poors) and
Fitch, Inc. (Fitch), or Ba or lower by Moodys
Investors Service, Inc. (Moodys)) or is an
unrated bond of similar quality. It presents greater risk of
default (the failure to make timely interest and principal
payments) than higher quality bonds. The underlying Janus
High-Yield Fund may invest without limit in
higher-yielding/higher-risk bonds. Other underlying funds have
limits related to their investments in high-yield/high-risk
bonds that range from 50% or less to 20% or less of their net
assets. High-yield/high-risk bonds may be more sensitive than
other types of bonds to economic changes, political changes, or
adverse developments specific to the company that issued the
bond, which may adversely affect their value. Issuers of
high-yield/high-risk bonds may not be as strong financially as
those issuing bonds with higher credit ratings and are more
vulnerable to real or perceived economic changes, political
changes, or adverse developments specific to the issuer. In
addition, the junk bond market can experience sudden and
26
sharp price swings. Please refer to the Explanation of
Rating Categories section of the SAI for a description of
bond rating categories.
Industry Risk. Although the Fund does
not concentrate its investments in specific industries, certain
underlying funds may invest in companies related in such a way
that they react similarly to certain industry-specific market or
economic developments. For example, competition among technology
companies may result in increasingly aggressive pricing of their
products and services, which may affect the profitability of
companies in an underlying funds portfolio. In addition,
because of the rapid pace of technological development, products
or services developed by companies in an underlying funds
portfolio may become rapidly obsolete or have relatively short
product cycles. As a result, such underlying funds returns
may be considerably more volatile than the returns of an
underlying fund that does not invest in similarly related
companies.
Interest Rate Risk. Generally, a
fixed-income security will increase in value when prevailing
interest rates fall and decrease in value when prevailing
interest rates rise. Longer-term securities are generally more
sensitive to interest rate changes than shorter-term securities,
but they generally offer higher yields to compensate investors
for the associated risks. High-yield bond prices and floating
rate debt security prices are generally less directly responsive
to interest rate changes than investment grade issues or
comparable fixed rate securities, and may not always follow this
pattern.
Investment Process Risk. The
optimization process used by Janus and the proprietary
mathematical investment process used by INTECH Investment
Management LLC (INTECH), the subadviser to certain
underlying funds, may not achieve the desired results.
Additionally, the rebalancing techniques used by Janus Capital
and INTECH may result in a higher portfolio turnover rate and
related expenses compared to a buy and hold fund
strategy. A higher portfolio turnover rate increases the
likelihood of higher net taxable gains or losses for
shareholders. There is a risk that if INTECHs method of
identifying stocks with higher volatility than the benchmark
index or its method of identifying stocks that tend to move in
the same or opposite direction relative to each other
(correlation) does not result in selecting stocks with
continuing volatility or the expected correlation, the
underlying fund may not outperform its respective benchmark
index. On a routine basis, INTECH considers changes to its
mathematical investment process. These changes may result in
changes to the portfolio, might not provide the intended
results, and may adversely impact the Funds performance.
In addition, others may attempt to utilize public information
related to INTECHs investment strategy in a way that may
affect performance.
Leverage Risk. Leverage occurs when an
underlying fund increases its assets available for investment
through borrowings or similar transactions. In accordance with
an underlying funds investment policy, the underlying fund
may engage in transactions that create leverage, including, but
not limited to, borrowing money from banks to the extent
permitted by the 1940 Act, including for investment purposes, as
well as engaging in the use of short sales. An underlying
funds use of leverage may result in risks and can magnify
the effect of any gains or losses, causing the underlying fund
to be more volatile than if it had not been leveraged. There is
no assurance that a leveraging strategy will be successful.
Long/Short Position Risk. The value of
an underlying funds long portfolio may decrease if the
value of an individual company or security, or multiple
companies or securities, in the portfolio decreases or if an
underlying funds portfolio managers are incorrect about
their assessment of a companys intrinsic worth. Further,
regardless of how well individual companies or securities
perform, the value of an underlying funds long portfolio
could also decrease if there are deteriorating economic or
market conditions. Conversely, an underlying funds short
positions may result in a loss (which may be unlimited) if the
value of an individual company or security, or multiple
companies or securities, in the portfolio increases or if the
stock market goes up, regardless of how well the businesses of
individual companies or securities in the portfolio perform. If
the value of an underlying funds portfolio decreases, the
underlying funds net asset value will also decrease.
Market Risk. Underlying funds investing
in equity securities are subject to the risks associated with
investments in common stocks, which tend to be more volatile
than many other investment choices. The value of an underlying
funds portfolio may decrease if the value of an individual
company or security, or multiple companies or securities, in the
portfolio decreases or if a portfolio managers belief
about a companys intrinsic worth is incorrect. Further,
regardless of how well individual companies or securities
perform, the value of an underlying funds portfolio could
also decrease if there are deteriorating economic or market
conditions, including, but not limited to, a general decline in
prices on the stock markets, a general decline in real estate
markets, a decline in commodities prices, or if the market
favors different types of securities than the types of
securities in which the underlying fund invests. If the value of
the underlying funds portfolio decreases, an underlying
funds net asset value will also decrease, resulting in a
decrease in the Funds net asset value, which means if you
sell your shares in the Fund you may lose money.
It is also important to note that events in both domestic and
international equity and fixed-income markets have resulted, and
may continue to result, in an unusually high degree of
volatility in the markets, with issuers that have exposure to
the real estate,
27
mortgage, and credit markets particularly affected. These events
and the resulting market upheavals may have an adverse effect on
an underlying fund, such as a decline in the value and liquidity
of many securities held by the underlying fund, unusually high
and unanticipated levels of redemptions, an increase in
portfolio turnover, a decrease in net asset value, and an
increase in underlying fund expenses. Because the situation is
unprecedented and widespread, it may also be unusually difficult
to identify both investment risks and opportunities, which could
limit or preclude an underlying funds ability to achieve
its investment objective. It is impossible to predict whether or
for how long these conditions will continue. Therefore, it is
important to understand that the value of your investment may
fall, sometimes sharply, and you could lose money.
Further, the instability experienced in the financial markets
has resulted in the U.S. Government and various other
governmental and regulatory entities taking actions to address
the financial crisis. These actions include, but are not limited
to, the enactment of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (the Dodd-Frank Act) in July
2010 which is expected to dramatically change the way in which
the U.S. financial system is supervised and regulated. More
specifically, the Dodd-Frank Act provides for widespread
regulation of financial institutions, consumer financial
products and services, broker-dealers, over-the-counter
derivatives, investment advisers, credit rating agencies, and
mortgage lending, which expands federal oversight in the
financial sector and may affect the investment management
industry as a whole. Given the broad scope, sweeping nature, and
the fact that many provisions of the Dodd-Frank Act must be
implemented through future rulemaking, the ultimate impact of
the Dodd-Frank Act, and any resulting regulation, is not yet
certain. As a result, there can be no assurance that these
government and regulatory measures will not have an adverse
effect on the value or marketability of securities held by an
underlying fund, including potentially limiting or completely
restricting the ability of the underlying fund to use a
particular investment instrument as part of its investment
strategy, increasing the costs of using these instruments, or
possibly making them less effective in general. Furthermore, no
assurance can be made that the U.S. Government or any
U.S. regulatory entity (or other authority or regulatory
entity) will not continue to take further legislative or
regulatory action in response to the economic crisis or
otherwise, and the effect of such actions, if taken, cannot be
known.
In addition, European markets have recently experienced
volatility and adverse trends due to concerns about economic
downturns, rising government debt levels, and the possible
default of government debt in several European countries,
including Greece, Ireland, Italy, Portugal, and Spain. A default
or debt restructuring by any European country would adversely
impact holders of that countrys debt and worldwide sellers
of credit default swaps linked to that countrys
creditworthiness. These trends have adversely affected the value
and exchange rate of the euro and may continue to significantly
affect the economies of all European countries, which in turn
may have a material adverse effect on an underlying funds
investments in such countries, other countries that depend on
European countries for significant amounts of trade or
investment, or issuers with exposure to European debt.
Mortgage-Backed Securities Risk. Rising
interest rates tend to extend the duration of, or reduce the
rate of prepayments on, mortgage-backed securities, making them
more sensitive to changes in interest rates (extension
risk). As a result, in a period of rising interest rates,
the price of mortgage-backed securities may fall, causing an
underlying fund that holds mortgage-backed securities to exhibit
additional volatility. Mortgage-backed securities are also
subject to prepayment risk. When interest rates decline,
borrowers may pay off their mortgages sooner than expected. This
can reduce an underlying funds returns because the
underlying fund will have to reinvest that money at lower
prevailing interest rates.
In addition to extension risk and prepayment risk, investments
in mortgage-backed securities, including those comprised of
subprime mortgages, may be subject to a higher degree of credit
risk, valuation risk, and liquidity risk than various other
types of fixed-income securities.
Nondiversification Risk. Certain
underlying funds are classified as nondiversified under the 1940
Act and may hold a greater percentage of their assets in a
smaller number of issuers. As a result, an increase or decrease
in the value of a single security held by an underlying fund may
have a greater impact on the underlying funds net asset
value and total return. Being nondiversified may also make an
underlying fund more susceptible to financial, economic,
political, or other developments that may impact a security.
Although an underlying fund may satisfy the requirements for a
diversified fund, its nondiversified classification gives the
underlying funds portfolio manager more flexibility to
hold larger positions in a smaller number of securities than an
underlying fund that is classified as diversified. An underlying
funds policy of concentrating its portfolio in a smaller
number of holdings could result in more volatility in the
underlying funds performance and its share price.
Portfolio Turnover Risk. Increased
portfolio turnover of underlying funds may result in higher
costs for brokerage commissions, dealer
mark-ups,
and other transaction costs, and may also result in taxable
capital gains. Higher costs associated with increased portfolio
turnover also may have a negative effect on the Funds
performance.
28
Real Estate Risk. Investments in
certain underlying funds may be subject to many of the same
risks as a direct investment in real estate. The value of
securities of issuers in the real estate and real estate-related
industries, including REITs, is sensitive to changes in real
estate values and rental income, property taxes, interest rates,
tax and regulatory requirements, supply and demand, and the
management skill and creditworthiness of the issuer. REITs that
invest in real estate mortgages are also subject to prepayment
risk. In addition to prepayment risk, investments in
mortgage-backed securities comprised of subprime mortgages and
investments in other asset-backed securities comprised of
under-performing assets may be subject to a higher degree of
credit risk, valuation risk, and liquidity risk.
Short Sales Risk. Short sales are
speculative transactions and involve special risks, including a
greater reliance on the ability of an underlying funds
portfolio manager to accurately anticipate the future value of a
security. An underlying fund will suffer a loss if it sells a
security short and the value of the security rises rather than
falls. An underlying funds losses are potentially
unlimited in a short sale transaction. The use of short sales
may also cause an underlying fund to have higher expenses than
those of other underlying funds. In addition, due to the
investment process of long and short positions, an underlying
fund may be subject to additional transaction costs that may
lower the underlying funds returns. An underlying
funds use of short sales may also have a leveraging effect
on the underlying funds portfolio.
Small- and Mid-Sized Companies
Risk. Due to certain underlying funds
investments in securities issued by small- and mid-sized
companies, the underlying funds net asset value may
fluctuate more than that of an underlying fund investing
primarily in large companies. An underlying funds
investments in securities issued by small- and mid-sized
companies, which tend to be smaller,
start-up
companies offering emerging products or services, may involve
greater risks than are customarily associated with larger, more
established companies. For example, while small- and mid-sized
companies may realize more substantial growth than larger or
more established issuers, they may also suffer more significant
losses as a result of their narrow product lines, limited
operating history, greater exposure to competitive threats,
limited financial resources, limited trading markets, and the
potential lack of management depth. Securities issued by small-
and mid-sized companies tend to be more volatile and somewhat
more speculative than securities issued by larger or more
established companies and may underperform as compared to the
securities of larger companies. These holdings are also subject
to wider price fluctuations and tend to be less liquid than
stocks of larger companies, which could have a significant
adverse effect on an underlying funds returns, especially
as market conditions change.
Sovereign Debt Risk. Certain underlying
funds may invest in U.S. and foreign government debt
securities (sovereign debt). Investments in
U.S. sovereign debt are considered low risk. However,
investments in
non-U.S. sovereign
debt can involve a high degree of risk, including the risk that
the governmental entity that controls the repayment of sovereign
debt may not be willing or able to repay the principal
and/or to
pay the interest on its sovereign debt in a timely manner. A
sovereign debtors willingness or ability to satisfy its
debt obligation may be affected by various factors, including
its cash flow situation, the extent of its foreign currency
reserves, the availability of foreign exchange when a payment is
due, the relative size of its debt position in relation to its
economy as a whole, the sovereign debtors policy toward
international lenders, and local political constraints to which
the governmental entity may be subject. Sovereign debtors may
also be dependent on expected disbursements from foreign
governments, multilateral agencies, and other entities. The
failure of a sovereign debtor to implement economic reforms,
achieve specified levels of economic performance, or repay
principal or interest when due may result in the cancellation of
third party commitments to lend funds to the sovereign debtor,
which may further impair such debtors ability or
willingness to timely service its debts. An underlying fund may
be requested to participate in the rescheduling of such
sovereign debt and to extend further loans to governmental
entities, which may adversely affect the underlying funds
holdings. In the event of default, there may be limited or no
legal remedies for collecting sovereign debt and there may be no
bankruptcy proceedings through which the underlying fund may
collect all or part of the sovereign debt that a governmental
entity has not repaid.
Value Investing Risk. Certain
underlying funds invest in value stocks. Because
different types of stocks tend to shift in and out of favor
depending on market and economic conditions, value
stocks may perform differently than other types of stocks and
from the market as a whole, and can continue to be undervalued
by the market for long periods of time. It is also possible that
a value stock will never appreciate to the extent expected.
Other
Comparative Information about the Funds
Investment
Adviser
Janus Capital Management LLC, 151 Detroit Street, Denver,
Colorado
80206-4805,
is the investment adviser to each Fund and the underlying funds.
Janus is responsible for the day-to-day management of the
Funds investment portfolios, as well as the investment
portfolios of certain underlying funds, and furnishes continuous
advice and recommendations concerning the Funds
investments. Janus also provides certain administration and
other services and is responsible for other business affairs of
each Fund.
29
Janus (together with its predecessors) has served as investment
adviser to Janus mutual funds since 1970 and currently serves as
investment adviser to all of the Janus funds, acts as subadviser
for a number of private-label mutual funds, and provides
separate account advisory services for institutional accounts
and other unregistered products.
Janus furnishes certain administration, compliance, and
accounting services for the Moderate Allocation Fund and World
Allocation Fund. In addition, employees of Janus
and/or its
affiliates serve as officers of the Trust. Janus provides office
space for the Funds and generally pays the salaries, fees, and
expenses of Fund officers with respect to services provided to
the Funds, although some expenses related to compensation
payable to the Janus funds Chief Compliance Officer and
compliance staff are shared with the Janus funds.
Janus furnishes certain administration, compliance, and
accounting services for World Allocation Fund and is reimbursed
by the Fund for certain of its costs in providing those services
(to the extent Janus seeks reimbursement and such costs are not
otherwise waived). In addition, employees of Janus
and/or its
affiliates may serve as officers of the Trust. Janus provides
office space for the Fund. Some expenses related to compensation
payable to the Janus funds Chief Compliance Officer and
compliance staff are shared with the Janus funds. World
Allocation Fund also pays for salaries, fees, and expenses of
certain Janus employees and Fund officers, with respect to
certain specified administration functions they perform on
behalf of the Janus funds. The Janus funds pay these costs based
on out-of-pocket expenses incurred by Janus, and these costs are
separate and apart from advisory fees and other expenses paid in
connection with the investment advisory services Janus provides
to the Fund.
Management
Expenses
Each Fund pays Janus an investment advisory fee and incurs
expenses, including distribution and shareholder servicing fees
(12b-1 fee),
administrative services fees payable pursuant to the Transfer
Agency Agreement, any other transfer agent and custodian fees
and expenses, legal and auditing fees, printing and mailing
costs of sending reports and other information to existing
shareholders, and Independent Trustees fees and expenses.
Each Funds investment advisory fee is calculated daily and
paid monthly. Each Funds advisory agreement details the
investment advisory fee and other expenses that each Fund must
pay. Janus also receives an investment advisory fee for managing
the underlying funds. Refer to the underlying funds
prospectuses for specific information about investment advisory
fees.
The following table reflects each Funds contractual
investment advisory fee rate (expressed as an annual rate), as
well as the actual investment advisory fee rate paid by each
Fund to Janus (gross and net of fee waivers). The rate shown is
a fixed rate based on each Funds average daily net assets.
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Actual Investment
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Contractual
|
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Advisory Fee
Rate(1)
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Investment
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(%) (for the fiscal
|
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Average Daily Net
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Advisory Fee (%)
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year ended June 30,
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Fund Name
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Assets of the Fund
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(annual rate)
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2012)
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World Allocation Fund
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All Asset Levels
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0.07
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0.00
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(2)
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Moderate Allocation Fund
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All Asset Levels
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0.05
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0.05
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(1)
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Janus has agreed to waive each
Funds total annual fund operating expenses (excluding any
expenses of an underlying fund (acquired fund fees and
expenses), the distribution and shareholder servicing fees,
administrative services fees payable pursuant to the Transfer
Agency Agreement (except for networking and omnibus fees for
Class A Shares, Class C Shares, and Class I
Shares), brokerage commissions, interest, dividends, taxes, and
extraordinary expenses) to certain levels until at least
November 1, 2013. Application of the expense waivers and
their effect on annual fund operating expenses is reflected,
when applicable, under Total Annual Fund Operating Expenses
After Fee Waiver in the table in the Comparison of Fees
and Expenses section of this Prospectus/Information
Statement, and additional information is included under
Expense Limitations. The waivers are not reflected
in the contractual fee rates shown.
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(2)
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For the fiscal year ended
June 30, 2012, the Fund did not pay Janus any investment
advisory fees (net of fee waivers) because the Funds fee
waiver exceeded the investment advisory fee.
|
A discussion regarding the basis for the Trustees approval
of the Funds investment advisory agreements is included in
each Funds annual or semiannual report to shareholders.
You can request the Funds annual or semiannual reports (as
they become available), free of charge, by contacting your plan
sponsor, broker-dealer, or financial intermediary, or by
contacting a Janus representative at
1-877-335-2687.
The reports are also available, free of charge, at
janus.com/info.
Subadviser
of Certain Underlying Funds
INTECH Investment Management LLC (INTECH)
serves as subadviser to five of the available underlying
funds: INTECH Global Dividend Fund, INTECH International Fund,
INTECH U.S. Core Fund, INTECH U.S. Growth Fund, and
INTECH U.S. Value Fund (together, the INTECH
Funds). INTECH (together with its predecessors), CityPlace
Tower, 525
30
Okeechobee Boulevard, Suite 1800, West Palm Beach, Florida
33401, also serves as investment adviser or subadviser to other
U.S. registered and unregistered investment companies,
offshore investment funds, and other institutional accounts and
registered investment companies. As subadviser, INTECH provides
day-to-day management of the investment operations of the
underlying INTECH Funds. Janus Capital owns approximately 95% of
INTECH.
Janus Capital Singapore Pte. Limited (Janus
Singapore) serves as subadviser to two of the
available underlying funds: Janus Asia Equity Fund and Janus
Emerging Markets Fund. Janus Singapore, #36-02 AXA Tower, 8
Shenton Way, Singapore 068811, has been in the investment
advisory business since 2011 and also serves as subadviser to
other U.S. registered investment companies and offshore
investment funds. Janus Singapore is a wholly-owned subsidiary
of Janus. As subadviser, Janus Singapore provides advisory
services to the underlying Janus Asia Equity Fund and Janus
Emerging Markets Fund.
Perkins Investment Management LLC (Perkins)
serves as subadviser to six of the available underlying
funds: Perkins Global Value Fund, Perkins Large Cap Value Fund,
Perkins Mid Cap Value Fund, Perkins Select Value Fund, Perkins
Small Cap Value Fund, and Perkins Value Plus Income Fund
(together, the Value Funds). Perkins (together with
its predecessors), 311 S. Wacker Drive,
Suite 6000, Chicago, Illinois 60606, has been in the
investment management business since 1984 and provides
day-to-day management of the investment operations of the
underlying Value Funds, as well as other mutual funds and
separate accounts. Janus owns approximately 78% of Perkins.
Third
Party Consultant
Janus has entered into an agreement with Wilshire Associates
Inc. (Wilshire), a global investment technology,
investment consulting, and investment management firm, to act as
a consultant to Janus with respect to Moderate Allocation
Fund Wilshire provides research and advice regarding asset
allocation methodologies, which Janus uses when determining
asset class allocations for the Funds. Based upon information
provided by Janus, Wilshire also provides quantitative and
qualitative evaluations of the underlying funds portfolio
managers
and/or
investment personnels investment style. Janus may use
these evaluations in its decisions to allocate assets among
underlying funds. Janus pays Wilshire a fee for its consulting
services.
Investment
Personnel
Daniel G. Scherman, CFA, is Executive Vice
President and Portfolio Manager of each Fund. Mr. Scherman
has sole responsibility and authority on allocations to
underlying funds, as well as oversight over the Funds cash
management. In fulfilling his Portfolio Manager duties,
Mr. Scherman collaborates with the Asset Allocation
Committee to suggest modifications to the optimization process,
the categorization or weightings of underlying funds, or to
substitute other underlying funds in order to emphasize and
mitigate risk exposures that may arise as a result of the
implementation of the allocations. Mr. Scherman is also
Portfolio Manager of other Janus accounts. He joined Janus in
2005 as Director of Risk and Trading. Mr. Scherman holds a
Bachelors degree in Economics and History from Dartmouth
College and a Master of Business Administration degree from
Boston University. He holds the Chartered Financial Analyst
designation.
Each Funds SAI, dated October 26, 2012, each of which
is incorporated by reference herein, provides information about
Mr. Schermans compensation structure and other
accounts managed, as well as the range of his individual
ownership of securities of the specific Fund(s) he manages and
the aggregate range of his individual ownership in all mutual
funds advised by Janus Capital.
Pricing
of Fund Shares
The Funds calculate their respective net asset value per share
(NAV) once each business day at the close of the
regular trading session of the NYSE (normally
4:00 p.m. Eastern time). For additional information
about calculation of NAV, please refer to Appendix C.
Purchase
of Fund Shares
A detailed description of Moderate Allocation Funds policy
with respect to purchases is available in Appendix C.
Redemption
of Fund Shares
A detailed description of Moderate Allocation Funds policy
with respect to redemptions is available in
Appendix C.
Dividends
and Distributions
A detailed description of Moderate Allocation Funds policy
with respect to dividends and distributions is available in
Appendix C.
31
Frequent
Purchases and Redemptions
A detailed description of Moderate Allocation Funds policies
with respect to frequent trading of Fund shares is available in
Appendix C.
Tax
Consequences
A detailed description of the tax consequences of buying,
holding, exchanging, and selling Moderate Allocation Funds
shares is available in Appendix C.
Distribution
Arrangements
A detailed description of Moderate Allocation Funds
distribution arrangements is available in Appendix C.
For a description of World Allocation Funds policies with
respect to purchases, redemptions, dividends and distributions,
frequent trading of Fund shares, tax consequences of buying,
holding, exchanging and selling Fund shares, and distribution
arrangements, refer to World Allocation Funds
Prospectuses, which are incorporated by reference herein, and
available upon request without charge.
Liquidation/Merger
of a Fund
It is important to know that, pursuant to the Trusts
Trust Instrument and in accordance with any applicable
regulations and laws, the Trustees have the authority to merge,
liquidate,
and/or
reorganize a Fund into another fund without seeking shareholder
vote or consent.
ADDITIONAL
INFORMATION
Share
Ownership
The following table shows the number of outstanding shares and
net assets of each class of World Allocation Fund and Moderate
Allocation Fund as of
[ ,
2012].
[To be updated]
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Total Number of Shares
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Fund
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Outstanding
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Net Assets
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World Allocation Fund
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Class A Shares
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$
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Class C Shares
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$
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Class S Shares
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$
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Class I Shares
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$
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Class T Shares
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$
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Total
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$
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Moderate Allocation Fund
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Class A Shares
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$
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Class C Shares
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$
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Class D Shares
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$
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Class S Shares
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$
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Class I Shares
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$
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Class T Shares
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$
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Total
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$
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[To the best knowledge of the Trust, as of
[ ,
2012], the officers and Trustees beneficially owned, as a group,
less than 1% of any class of each Fund.]
Beneficial owners of 5% or more of the outstanding shares of
each Fund as of the Record Date are shown below. To the best
knowledge of the Trust, no person or entity beneficially owned
more than 5% of the outstanding shares of either Fund except as
shown below, and such owners may not be the beneficial owner of
all or a portion of the shares.
[To be updated]
32
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Number of
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Percent of
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Name of Fund and Class
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Name and Address of Beneficial Owner
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Shares
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Fund
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World Allocation Fund
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%
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Class [A] Shares
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Moderate Allocation Fund
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%
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Class [A]Shares
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Trustees
and Officers
The following individuals comprise the Board of Trustees of the
Trust: William D. Cvengros, William F. McCalpin, John P.
McGonigle, James T. Rothe, William D. Stewart, and Linda S.
Wolf. Each Trustee is independent of Janus, Janus Distributors,
and the Trust. The officers of the Trust are disclosed in the
Funds combined SAI which is incorporated herein by
reference and has been filed with the SEC.
Independent
Registered Public Accounting Firm
[To be updated by amendment]
Copies of
Fund Information
To avoid sending duplicate copies of materials to certain
households, the Fund may mail only one copy of each report or
this Prospectus/Information Statement to shareholders having the
same last name and address on the Funds records. The
consolidation of these mailings benefits the Fund through
reduced mailing expenses.
Information
Available Through the SEC
Each Fund is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended, and the 1940 Act,
and files reports, proxy materials, and other information with
the SEC. You may review and copy information about the Funds at
the Public Reference Room of the SEC or get text only copies,
after paying a duplicating fee, by sending an electronic request
by e-mail to
publicinfo@sec.gov or by writing to or calling the
Commissions Public Reference Section,
Washington, D.C.
20549-1520
(1-202-551-8090). Information on the operation of the Public
Reference Room may also be obtained by calling this number. You
may also obtain reports and other information about the Funds
from the Electronic Data Gathering Analysis and Retrieval
(EDGAR) Database on the SECs website at
http://www.sec.gov.
By order of the Board of Trustees,
Robin C. Beery
Chief Executive Officer and President of
Janus Investment Fund
33
APPENDIX A
FORM OF
AGREEMENT AND PLAN OF REORGANIZATION
[DRAFT]
AGREEMENT
AND PLAN OF REORGANIZATION
THIS AGREEMENT AND PLAN OF REORGANIZATION (the
Agreement) is made as of this
[ ] day
of
[ ,
2012,] by and between Janus Investment Fund, a Massachusetts
business trust (the Trust), on behalf of World
Allocation Fund, a series of the Trust (the Predecessor
Fund), and Janus Moderate Allocation Fund (to be renamed
Janus Global Allocation Fund-Moderate), a series of the Trust
(the Successor Fund).
All references in this Agreement to action taken by the
Predecessor Fund or the Successor Fund shall be deemed to refer
to action taken by the Trust on behalf of the respective
portfolio series.
This Agreement is intended to be and is adopted as a plan of
reorganization and liquidation within the meaning of
Section 368(a) of the United States Internal Revenue Code
of 1986, as amended (the Code). The reorganization
(the Reorganization) will consist of the transfer by
the Predecessor Fund of all or substantially all of its assets
to the Successor Fund, in exchange solely for Class A,
Class C, Class I, Class S and Class T voting
shares of beneficial interest in the Successor Fund (the
Successor Fund Shares) having an aggregate net
asset value equal to the aggregate net asset value of the same
class of shares of the Predecessor Fund, the assumption by the
Successor Fund of all the liabilities of the Predecessor Fund,
and the distribution of the Class A, Class C,
Class I, Class S and Class T Successor
Fund Shares to the shareholders of the Predecessor Fund in
complete liquidation of the Predecessor Fund as provided herein,
all upon the terms and conditions hereinafter set forth in this
Agreement.
WHEREAS, the Board of Trustees of the Trust has determined that
it is in the best interest of each of the Predecessor Fund and
the Successor Fund that the assets of the Predecessor Fund be
acquired by the Successor Fund pursuant to this Agreement and in
accordance with the applicable statutes of the Commonwealth of
Massachusetts, and that the interests of existing shareholders
will not be diluted as a result of this transaction;
NOW, THEREFORE, in consideration of the premises and of the
covenants and agreements hereinafter set forth, the parties
hereto covenant and agree as follows:
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1.
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PLAN OF
REORGANIZATION
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1.1 Subject to the terms and conditions herein set
forth, the Trust shall (i) transfer all or substantially
all of the assets of the Predecessor Fund, as set forth in
paragraph 1.2, to the Successor Fund, (ii) the Trust
shall cause the Successor Fund to deliver to the Trust full and
fractional Class A, Class C, Class I,
Class S and Class T Successor Fund Shares having
an aggregate net asset value equal to the value of the aggregate
net assets of the same class of shares of the Predecessor Fund
as of the close of regular session trading on the New York Stock
Exchange on the Closing Date, as set forth in paragraph 2.1
(the Closing Date) and (iii) the Trust shall
cause the Successor Fund to assume all liabilities of the
Predecessor Fund, as set forth in paragraph 1.2. Such
transactions shall take place at the closing provided for in
paragraph 2.1 (the Closing).
1.2 The assets of the Predecessor Fund to be acquired
by the Successor Fund shall consist of all property, including,
without limitation, all cash, securities, commodities and
futures interests, and dividends or interest receivable which
are owned by the Predecessor Fund and any deferred or prepaid
expenses shown as an asset on the books of the Predecessor Fund
on the Closing Date. The Successor Fund will assume all of the
liabilities, expenses, costs, charges and reserves of the
Predecessor Fund of any kind, whether absolute, accrued,
contingent or otherwise in existence on the Closing Date.
1.3 The Predecessor Fund will distribute pro rata to
its shareholders of record of the applicable classes, determined
as of immediately after the close of business on the Closing
Date (the Current Shareholders), the Class A,
Class C, Class I, Class S and Class T
Successor Fund Shares received by the Trust pursuant to
paragraph 1.1. Such distribution and liquidation will be
accomplished by the transfer of the Class A, Class C,
Class I, Class S and Class T Successor
Fund Shares then credited to the accounts of the
Predecessor Fund on the books of the Successor Fund to open
accounts on the share records of the Successor Fund in the names
of the Current Shareholders and representing the respective pro
rata number of the Class A, Class C, Class I,
Class S and Class T Successor Fund Shares due to
such shareholders. All issued and outstanding shares of the
Predecessor Fund will simultaneously be canceled on the books of
the Trust. The Successor Fund shall not issue certificates
representing the Class A, Class C, Class I,
Class S and Class T Successor Fund Shares in
connection with such exchange. Ownership of Class A,
Class C,
A-1
Class I, Class S and Class T Successor
Fund Shares will be shown on the books of the Trusts
transfer agent. As soon as practicable after the Closing, the
Trust shall take all steps necessary to effect a complete
liquidation of the Predecessor Fund.
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2.
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CLOSING AND
CLOSING DATE
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2.1 The Closing Date shall be
[ ,
2013] or such other date as the parties may agree to in writing.
All acts taking place at the Closing shall be deemed to take
place simultaneously as of immediately after the close of
business on the Closing Date unless otherwise agreed to by the
parties. The close of business on the Closing Date shall be as
of 4:00 p.m. New York Time. The Closing shall be held
at the offices of Janus Capital Management LLC
(JCM), 151 Detroit Street, Denver, Colorado
80206-4805,
or at such other time
and/or place
as the parties may agree.
2.2 The Trust shall cause Janus Services LLC (the
Transfer Agent), transfer agent of the Predecessor
Fund, to deliver at the Closing a certificate of an authorized
officer stating that its records contain the names and addresses
of the Current Shareholders and the number, class, and
percentage ownership of outstanding shares of the Predecessor
Fund owned by each such shareholder immediately prior to the
Closing. The Successor Fund shall issue and deliver a
confirmation evidencing the Class A, Class C,
Class I, Class S and Class T Successor
Fund Shares to be credited on the Closing Date to the
Secretary of the Trust or provide evidence satisfactory to the
Trust that such Class A, Class C, Class I,
Class S and Class T Successor Fund Shares have
been credited to the accounts of the Predecessor Fund on the
books of the Successor Fund. At the Closing, each party shall
deliver to the other such bills of sales, checks, assignments,
share certificates, if any, receipts or other documents as such
other party or its counsel may reasonably request.
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3.
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REPRESENTATIONS
AND WARRANTIES
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3.1 The Trust, on behalf of the Predecessor Fund,
hereby represents and warrants to the Successor Fund as follows:
(i) the Trust is duly organized and existing under its
Amended and Restated Agreement and Declaration of Trust (the
Declaration of Trust) and the laws of the
Commonwealth of Massachusetts as a voluntary association with
transferable shares of beneficial interest commonly referred to
as a Massachusetts business trust;
(ii) the Trust has full power and authority to execute,
deliver and carry out the terms of this Agreement on behalf of
the Predecessor Fund;
(iii) the execution and delivery of this Agreement on
behalf of the Predecessor Fund and the consummation of the
transactions contemplated hereby are duly authorized and no
other proceedings on the part of the Trust or the shareholders
of the Predecessor Fund are necessary to authorize this
Agreement and the transactions contemplated hereby;
(iv) this Agreement has been duly executed by the Trust on
behalf of the Predecessor Fund and constitutes its valid and
binding obligation, enforceable in accordance with its terms,
subject to applicable bankruptcy, reorganization, insolvency,
moratorium and other rights affecting creditors rights
generally, and general equitable principles;
(v) neither the execution and delivery of this Agreement by
the Trust on behalf of the Predecessor Fund, nor the
consummation by the Trust on behalf of the Predecessor Fund of
the transactions contemplated hereby, will conflict with, result
in a breach or violation of or constitute (or with notice, lapse
of time or both) a breach of or default under, the Declaration
of Trust or the Amended and Restated Bylaws of the Trust
(Bylaws), as each may be amended, or any statute,
regulation, order, judgment or decree, or any instrument,
contract or other agreement to which the Trust is a party or by
which the Trust or any of its assets is subject or bound;
(vi) the unaudited statement of assets and liabilities of
the Predecessor Fund as of the Closing Date, determined in
accordance with generally accepted accounting principles
consistently applied from the prior audited period, accurately
reflects all liabilities of the Predecessor Fund as of the
Closing Date;
(vii) no authorization, consent or approval of any
governmental or other public body or authority or any other
party is necessary for the execution and delivery of this
Agreement by the Trust on behalf of the Predecessor Fund or the
consummation of any transactions contemplated hereby by the
Trust, other than as shall be obtained at or prior to the
Closing;
(viii) On the Closing Date, all Federal and other tax
returns, dividend reporting forms, and other tax-related reports
of the Predecessor Fund required by law to have been filed by
such date (including any extensions) shall have been filed and
are or will be correct in all material respects, and all Federal
and other taxes shown as due or required to be shown as due on
said returns and reports shall have been paid or provision shall
have been made for the payment thereof; and
A-2
(ix) For each taxable year of its operation (including the
taxable year which ends on the Closing Date), the Predecessor
Fund has met (or will meet) the requirements of Subchapter M of
the Internal Revenue Code of 1986, as amended (the
Code) for qualification as a regulated investment
company, has been (or will be) eligible to and has computed (or
will compute) its federal income tax under Section 852 of
the Code, and will have distributed all of its investment
company taxable income and net capital gain (as defined in the
Code) that has accrued through the Closing Date.
3.2 The Trust, on behalf of the Successor Fund,
hereby represents and warrants to the Predecessor Fund as
follows:
(i) the Trust is duly organized and existing under its
Declaration of Trust and the laws of the Commonwealth of
Massachusetts as a voluntary association with transferable
shares of beneficial interest commonly referred to as a
Massachusetts business trust;
(ii) the Trust has full power and authority to execute,
deliver and carry out the terms of this Agreement on behalf of
the Successor Fund;
(iii) the execution and delivery of this Agreement on
behalf of the Successor Fund and the consummation of the
transactions contemplated hereby are duly authorized and no
other proceedings on the part of the Trust or the shareholders
of the Successor Fund are necessary to authorize this Agreement
and the transactions contemplated hereby;
(iv) this Agreement has been duly executed by the Trust on
behalf of the Successor Fund and constitutes its valid and
binding obligation, enforceable in accordance with its terms,
subject to applicable bankruptcy, reorganization, insolvency,
moratorium and other rights affecting creditors rights
generally, and general equitable principles;
(v) neither the execution and delivery of this Agreement by
the Trust on behalf of the Successor Fund, nor the consummation
by the Trust on behalf of the Successor Fund of the transactions
contemplated hereby, will conflict with, result in a breach or
violation of or constitute (or with notice, lapse of time or
both constitute) a breach of or default under, the Declaration
of Trust or the Bylaws of the Trust, as each may be amended, or
any statute, regulation, order, judgment or decree, or any
instrument, contract or other agreement to which the Trust is a
party or by which the Trust or any of its assets is subject or
bound;
(vi) the net asset value per share of a Class A,
Class C, Class I, Class S and Class T
Successor Fund Share as of the close of regular session
trading on the New York Stock Exchange on the Closing Date
reflects all liabilities of the Successor Fund as of that time
and date;
(vii) no authorization, consent or approval of any
governmental or other public body or authority or any other
party is necessary for the execution and delivery of this
Agreement by the Trust on behalf of the Successor Fund or the
consummation of any transactions contemplated hereby by the
Trust, other than as shall be obtained at or prior to the
Closing;
(viii) On the Closing Date, all Federal and other tax
returns, dividend reporting forms, and other tax-related reports
of the Successor Fund required by law to have been filed by such
date (including any extensions) shall have been filed and are or
will be correct in all material respects, and all Federal and
other taxes shown as due or required to be shown as due on said
returns and reports shall have been paid or provision shall have
been made for the payment thereof; and
(ix) For each taxable year of its operation (including the
taxable year which includes the Closing Date), the Successor
Fund has met (or will meet) the requirements of Subchapter M of
the Code for qualification as a regulated investment company,
has been (or will be) eligible to and has computed (or will
compute) its federal income tax under Section 852 of the
Code, and has distributed all of its investment company taxable
income and net capital gain (as defined in the Code) for periods
ending prior to the Closing Date.
4.1 The obligations of the Trust on behalf of the
Predecessor Fund and the Trust on behalf of the Successor Fund
to effectuate the Reorganization shall be subject to the
satisfaction of the following conditions with respect to such
Reorganization:
(i) The Trust shall have filed with the Securities and
Exchange Commission (the Commission) a registration
statement on
Form N-14
under the Securities Act of 1933, as amended (the
Securities Act) and such amendment or amendments
thereto as are determined by the Board of Trustees of the Trust
and/or JCM
to be necessary and appropriate to effect the registration of
the Class A, Class C, Class I, Class S and
Class T Successor Fund Shares (the Registration
Statement), and the Registration Statement shall have
become effective, and no stop-order suspending the effectiveness
of the Registration
A-3
Statement shall have been issued, and no proceeding for that
purpose shall have been initiated or threatened by the
Commission (and not withdrawn or terminated);
(ii) The Class A, Class C, Class I,
Class S and Class T Successor Fund Shares shall
have been duly qualified for offering to the public in all
states in which such qualification is required for consummation
of the transactions contemplated hereunder;
(iii) All representations and warranties of the Trust on
behalf of the Predecessor Fund contained in this Agreement shall
be true and correct in all material respects as of the date
hereof and as of the Closing, with the same force and effect as
if then made, and the Trust on behalf of the Successor Fund
shall have received a certificate of an officer of the Trust
acting on behalf of the Predecessor Fund to that effect in form
and substance reasonably satisfactory to the Trust on behalf of
the Successor Fund;
(iv) All representations and warranties of the Trust on
behalf of the Successor Fund contained in this Agreement shall
be true and correct in all material respects as of the date
hereof and as of the Closing, with the same force and effect as
if then made, and the Trust on behalf of the Predecessor Fund
shall have received a certificate of an officer of the Trust
acting on behalf of the Successor Fund to that effect in form
and substance reasonably satisfactory to the Trust on behalf of
the Predecessor Fund;
(v) The Trust shall have received the opinion
of
substantially to the effect that, based upon certain facts,
assumptions, and representations, the transaction contemplated
by this Agreement shall constitute a tax-free reorganization for
Federal income tax purposes. The delivery of such opinion is
conditioned upon receipt
by
of representations it shall request of the Trust.
Notwithstanding anything herein to the contrary, the Trust may
not waive the condition set forth in this paragraph;
(vi) Unless otherwise determined by the officers of the
Predecessor Fund, the Predecessor Fund shall have declared and
paid a distribution or distributions prior to the Closing that,
together with all previous distributions, shall have the effect
of distributing to its shareholders (i) all of its
investment company taxable income and all of its net realized
capital gains, if any, for the period from the close of its last
fiscal year to 4:00 p.m. New York Time on the Closing;
and (ii) any undistributed investment company taxable
income and net realized capital gains from any period to the
extent not otherwise already distributed.
All of the expenses and costs of the Reorganization and the
transactions contemplated thereby shall be borne by JCM.
The Trust agrees on behalf of each of the Predecessor Fund and
the Successor Fund that this Agreement constitutes the entire
agreement between the parties.
This Agreement and the transactions contemplated hereby may be
terminated and abandoned by resolution of the Board of Trustees
of the Trust at any time prior to the Closing Date, if
circumstances should develop that, in the opinion of the Board
of Trustees of the Trust, make proceeding with the Agreement
inadvisable.
This agreement may be amended, modified or supplemented in such
manner as may be mutually agreed upon in writing by the parties.
Any notice, report, statement or demand required or permitted by
any provisions of this Agreement shall be in writing and shall
be given by prepaid telegraph, telecopy or certified mail
addressed to the parties hereto at their principal place of
business.
A-4
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10.
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HEADINGS;
COUNTERPARTS; GOVERNING LAW; ASSIGNMENT; LIMITATION OF LIABILITY
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10.1 The Article and paragraph headings contained in
this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this
Agreement.
10.2 This Agreement may be executed in any number of
counterparts each of which shall be deemed an original.
10.3 This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of
Massachusetts.
10.4 This Agreement shall bind and inure to the
benefit of the parties hereto and their respective successors
and assigns, but no assignment or transfer hereof or of any
rights or obligations hereunder shall be made by any party
without the written consent of the other party. Nothing herein
expressed or implied is intended or shall be construed to confer
upon or give any person, firm or corporation, other than the
parties hereto and their respective successors and assigns, any
rights or remedies under or by reason of this Agreement.
10.5 It is expressly agreed that the obligations of
the Trust hereunder shall not be binding upon any of the
Trustees, consultants, shareholders, nominees, officers, agents
or employees of the Trust personally, but shall bind only the
trust property of the Trust, as provided in the Declaration of
Trust. The execution and delivery by such officers of the Trust
shall not be deemed to have been made by any of them
individually or to impose any liability on any of them
personally, but shall bind only the trust property of the Trust
as provided in the Declaration of Trust. The Trust is a series
company with multiple series and has entered into this Agreement
on behalf of each of the Predecessor Fund and the Successor Fund.
10.6 The sole remedy of a party hereto for a breach
of any representation or warranty made in this Agreement by the
other party shall be an election by the non-breaching party not
to complete the transactions contemplated herein.
IN WITNESS WHEREOF, the undersigned has caused this Agreement to
be executed as of the date set forth above.
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ATTEST
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JANUS INVESTMENT FUND
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For and on behalf of the Predecessor Fund
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Name:
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By:
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Name:
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Title:
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ATTEST
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JANUS INVESTMENT FUND
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For and on behalf of the Successor Fund
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Name:
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By:
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Name:
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Title:
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A-5
APPENDIX B
INVESTMENT
POLICIES AND RESTRICTIONS
Fundamental
Investment Policies and Restrictions:
The Funds are subject to certain fundamental policies and
restrictions that may not be changed without shareholder
approval. Shareholder approval means approval by the lesser of:
(i) more than 50% of the outstanding voting securities of
the Trust (or a particular Fund or particular class of shares if
a matter affects just that Fund or that class of shares) or
(ii) 67% or more of the voting securities present at a
meeting if the holders of more than 50% of the outstanding
voting securities of the Trust (or a particular Fund or class of
shares) are present or represented by proxy. The following
policies are fundamental policies of the Funds.
(1) With respect to 75% of its total assets, a Fund may not
purchase securities of an issuer (other than the
U.S. Government, its agencies, instrumentalities or
authorities, or repurchase agreements collateralized by
U.S. Government securities) if: (a) such purchase
would, at the time, cause more than 5% of the Funds total
assets taken at market value to be invested in the securities of
such issuer or (b) such purchase would, at the time, result
in more than 10% of the outstanding voting securities of such
issuer being held by the Fund.
Each Fund may not:
(2) Invest 25% or more of the value of its total assets in
any particular industry (other than U.S. Government
securities) provided that investments in other investment
companies shall not be considered an investment in any
particular industry for purposes of this investment limitation.
(3) Purchase or sell physical commodities unless acquired
as a result of ownership of securities or other instruments (but
this limitation shall not prevent a Fund from purchasing or
selling foreign currencies, options, futures, swaps, forward
contracts, or other derivative instruments, or from investing in
securities or other instruments backed by physical commodities).
(4) Lend any security or make any other loan if, as a
result, more than one-third of a Funds total assets would
be lent to other parties (but this limitation does not apply to
investments in repurchase agreements, commercial paper, debt
securities, or loans, including assignments and participation
interests).
(5) Act as an underwriter of securities issued by others,
except to the extent that a Fund may be deemed an underwriter in
connection with the disposition of its portfolio securities.
(6) Borrow money except that a Fund may borrow money for
temporary or emergency purposes (not for leveraging or
investment). Borrowings from banks will not, in any event,
exceed one-third of the value of a Funds total assets
(including the amount borrowed). This policy shall not prohibit
short sales transactions or futures, options, swaps, or forward
transactions. The Funds may not issue senior
securities in contravention of the 1940 Act.
(7) Invest directly in real estate or interests in real
estate; however, a Fund may own debt or equity securities issued
by companies engaged in those businesses.
As a fundamental policy, a Fund may, notwithstanding any other
investment policy or limitation (whether or not fundamental),
invest all of its assets in the securities of a single open-end
management investment company with substantially the same
fundamental investment objectives, policies, and limitations as
such Fund.
The Trustees have adopted additional investment restrictions for
the Funds. These restrictions are operating policies of the
Funds and may be changed by the Trustees without shareholder
approval. The additional restrictions adopted by the Trustees to
date include the following:
(1) The Funds may sell securities short if they own or have
the right to obtain securities equivalent in kind and amount to
the securities sold short without the payment of any additional
consideration therefor (short sales against the
box). In addition, each Fund may engage in short sales
other than against the box, which involve selling a security
that the Fund borrows and does not own. The Trustees may impose
limits on a Funds investments in short sales, as described
in the Funds Prospectus. Transactions in futures, options,
swaps, and forward contracts not involving short sales are not
deemed to constitute selling securities short.
(2) The Funds do not intend to purchase securities on
margin, except that a Fund may obtain such short-term credits as
are necessary for the clearance of transactions, and provided
that margin payments and other deposits in connection with
transactions involving short sales, futures, options, swaps,
forward contracts, and other permitted investment techniques
shall not be deemed to constitute purchasing securities on
margin.
B-1
(3) A Fund may not mortgage or pledge any securities owned
or held by such Fund in amounts that exceed, in the aggregate,
15% of that Funds net asset value, provided that this
limitation does not apply to: reverse repurchase agreements;
deposits of assets to margin; guarantee positions in futures,
options, swaps, or forward contracts; or the segregation of
assets in connection with such contracts.
(4) The Funds do not currently intend to purchase any
security or enter into a repurchase agreement if, as a result,
more than 15% of their respective net assets would be invested
in repurchase agreements not entitling the holder to payment of
principal and interest within seven days and in securities that
are illiquid by virtue of legal or contractual restrictions on
resale or the absence of a readily available market. The
Trustees, or the Funds investment adviser acting pursuant
to authority delegated by the Trustees, may determine that a
readily available market exists for: securities eligible for
resale pursuant to Rule 144A under the Securities Act of
1933, as amended (Rule 144A Securities), or any
successor to such rule; Section 4(2) commercial paper; and
municipal lease obligations. Accordingly, such securities may
not be subject to the foregoing limitation.
(5) The Fund may not invest in companies for the purpose of
exercising control of management.
Under the terms of an exemptive order received from the SEC,
each Fund may borrow money from or lend money to other funds
that permit such transactions and for which Janus or one of its
affiliates serves as investment adviser. All such borrowing and
lending will be subject to the above limits and to the limits
and other conditions in such exemptive order. A Fund will borrow
money through the program only when the costs are equal to or
lower than the cost of bank loans. Interfund loans and
borrowings normally extend overnight, but can have a maximum
duration of seven days. A Fund will lend through the program
only when the returns are higher than those available from other
short-term instruments (such as repurchase agreements). A Fund
may have to borrow from a bank at a higher interest rate if an
interfund loan is called or not renewed. Any delay in repayment
to a lending Fund could result in a lost investment opportunity
or additional borrowing costs.
For the purposes of these investment restrictions, the
identification of the issuer of a municipal obligation depends
on the terms and conditions of the security. When assets and
revenues of a political subdivision are separate from those of
the government that created the subdivision and the security is
backed only by the assets and revenues of the subdivision, the
subdivision is deemed to be the sole issuer. Similarly, in the
case of an industrial development bond, if the bond is backed
only by assets and revenues of a nongovernmental user, then the
nongovernmental user would be deemed to be the sole issuer. If,
however, in either case, the creating government or some other
entity guarantees the security, the guarantee would be
considered a separate security that would be treated as an issue
of the guaranteeing entity.
For purposes of each Funds policies on investing in
particular industries, as of the date of the Funds
currently effective SAI, as supplemented, each Fund relies
primarily on industry or industry group classifications as
published by Bloomberg L.P. To the extent that the Bloomberg
L.P. classifications are so broad that the primary economic
characteristics in a single class are materially different, a
Fund may further classify issuers in accordance with industry
classifications as published by the SEC or relevant SEC staff
interpretations. The Funds intend to change industry or industry
group classifications with respect to equity investments to
Global Industry Classification Standard (GICS), but
would continue to use Bloomberg L.P. for fixed-income
investments. The Funds may change any source used for
determining industry classifications without prior shareholder
notice or approval.
B-2
APPENDIX C
ADDITIONAL
INFORMATION ABOUT MODERATE ALLOCATION FUND
The Fund offers multiple classes of shares in order to meet the
needs of various types of investors.
Class A Shares and Class C Shares are offered
through financial intermediary platforms including, but not
limited to, traditional brokerage platforms, mutual fund wrap
fee programs, bank trust platforms, and retirement platforms.
Class A Shares may be offered without an initial sales
charge through certain retirement platforms and through certain
financial intermediary platforms, including but not limited to,
fee-based broker-dealers or financial advisors, primarily on
their wrap account platform(s) where such broker-dealer or
financial advisor imposes additional fees for services connected
to the wrap account. Class A Shares pay up to 0.25% of net
assets to financial intermediaries for the provision of
distribution services
and/or
shareholder services on behalf of their clients. Class C
Shares pay up to 0.75% of net assets for payment to financial
intermediaries for the provision of distribution services and up
to 0.25% of net assets for the provision of shareholder services
on behalf of their clients. In addition, Class A Shares and
Class C Shares pay financial intermediaries for the
provision of administrative services, including recordkeeping,
subaccounting, order processing for omnibus or networked
accounts, or other shareholder services provided to shareholders.
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 or its affiliates to offer the shares on their
supermarket platforms. Class S Shares pay up to 0.25% of
net assets to financial intermediaries for the provision of
distribution services
and/or
shareholder services and up to 0.25% of net assets for the
provision of administrative services, including recordkeeping,
subaccounting, order processing for omnibus or networked
accounts, or other shareholder services provided to or on behalf
of their clients.
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 pay financial
intermediaries for the provision of administrative services,
including recordkeeping, subaccounting, order processing for
omnibus or networked accounts, or other shareholder services
provided to shareholders. 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 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 or its affiliates to offer the shares on
their supermarket platforms. Class T Shares pay up to 0.25%
of net assets to financial intermediaries for the provision of
administrative services, including recordkeeping, subaccounting,
order processing for omnibus or networked accounts, or other
shareholder services provided to shareholders.
The shares are not offered directly to individual investors with
the exception of Class D Shares, and in certain
circumstances, Class I Shares. Consult with your financial
intermediary representative for additional information on
whether the shares are an appropriate investment choice. Certain
funds may not be available through certain of these
intermediaries and not all financial intermediaries offer all
classes of shares. If your financial intermediary offers more
than one class of shares, you should carefully consider which
class of shares to purchase. Certain classes have higher
expenses than other classes, which may lower the return on your
investment. For instructions on how to purchase, exchange, or
redeem shares, contact your financial intermediary or refer to
your plan documents. For Class D Shares, contact a Janus
representative at
1-800-525-3713,
or for Class I Shares held directly with Janus, please
contact a Janus representative at
1-800-333-1181.
With certain limited exceptions, the Fund is available only to
U.S. citizens or residents, and employees of Janus or its
affiliates.
PRICING
OF FUND SHARES
The per share NAV for each class is computed by dividing the
total value of assets allocated to the class, less liabilities
allocated to that class, by the total number of outstanding
shares of the class. The value of a Funds investment in an
underlying fund is based upon the NAV of the underlying fund. A
Funds NAV is calculated as of the close of the regular
trading session of the New York Stock Exchange
(NYSE) (normally 4:00 p.m. New York time) each
day that the NYSE is open (business day). However,
C-1
the NAV may be calculated earlier if trading on the NYSE is
restricted, or as permitted by the Securities and Exchange
Commission (SEC). Foreign securities held by the
Fund may be traded on days and at times when the NYSE is closed
and the NAV is therefore not calculated. Accordingly, the value
of the Funds holdings may change on days that are not
business days in the United States and on which you will not be
able to purchase or redeem the Funds shares.
The price you pay for purchases of shares is the public offering
price, which is the NAV next determined after your request is
received in good order by the Fund or its agents, plus, for
Class A Shares, any applicable initial sales charge. The
price you pay to sell shares is also the NAV, although for
Class A Shares and Class C Shares, a contingent
deferred sales charge may be taken out of the proceeds. Your
financial intermediary may charge you a separate or additional
fee for processing purchases and redemptions of shares. In order
to receive a days price, your order must be received in
good order by the Fund or its agents by the close of the regular
trading session of the NYSE.
Securities held by the Fund are generally valued at market
value. Certain short-term instruments maturing within
60 days or less are valued at amortized cost, which
approximates market value. If a market quotation for a security
is not readily available or is deemed unreliable, or if an event
that is expected to affect the value of the security occurs
after the close of the principal exchange or market on which the
security is traded, and before the close of the NYSE, a fair
value of the security (except for short-term instruments
maturing within 60 days or less) will be determined in good
faith under policies and procedures established by and under the
supervision of the Funds Trustees. Such events 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 non-significant event such as a market closing
early or not opening, or a security trading halt; and
(iv) pricing of a non-valued security and a restricted or
non-public security. While fair value pricing may be more
commonly used with foreign equity securities, it may also be
used with, among other things, thinly-traded domestic securities
or fixed-income securities. For valuation purposes, quotations
of foreign portfolio securities, other assets and liabilities,
and forward contracts stated in foreign currency are generally
translated into U.S. dollar equivalents at the prevailing
market rates. The Fund may use systematic fair valuation models
provided by independent pricing services to value foreign 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.
Due to the subjective nature of fair value pricing, the
Funds value for a particular security may be different
from the last quoted market price. Fair value pricing may reduce
arbitrage activity involving the frequent buying and selling of
mutual fund shares by investors seeking to take advantage of a
perceived lag between a change in the value of the Funds
portfolio securities and the reflection of such change in the
Funds NAV, as further described in the Excessive
Trading section of this Prospectus/Information Statement.
While funds that invest in foreign securities may be at a
greater risk for arbitrage activity, such activity may also
arise in funds which do not invest in foreign securities, for
example, when trading in a security held by a fund is halted and
does not resume prior to the time the fund calculates its NAV
(referred to as stale pricing). Funds that hold
thinly-traded securities, such as certain small-capitalization
securities, may be subject to attempted use of arbitrage
techniques. To the extent that the Funds valuation of a
security is different from the securitys market value,
short-term arbitrage traders buying
and/or
selling shares of the Fund may dilute the NAV of the Fund, which
negatively impacts long-term shareholders. The Funds fair
value pricing and excessive trading policies and procedures may
not completely eliminate short-term trading in certain omnibus
accounts and other accounts traded through intermediaries.
The value of the securities of other open-end funds held by the
Fund, if any, will be calculated using the NAV of such open-end
funds, and the prospectuses for such open-end funds explain the
circumstances under which they use fair value pricing and the
effects of using fair value pricing.
All purchases, exchanges, redemptions, or other account activity
must be processed through your financial intermediary or plan
sponsor. Your financial intermediary or plan sponsor is
responsible for promptly transmitting purchase, redemption, and
other requests to the Fund under the arrangements made between
your financial intermediary or plan sponsor and its customers.
The Fund is not responsible for the failure of any financial
intermediary or plan sponsor to carry out its obligations to its
customers.
CHOOSING
A SHARE CLASS
Class A Shares, Class C Shares, Class S Shares,
Class I Shares, and Class T Shares are offered by this
Prospectus/Information Statement. The Fund offers multiple
classes of shares in order to meet the needs of various types of
investors. For more information about these classes of shares
and whether or not you are eligible to purchase these shares,
please call 1-877-335-2687.
C-2
Each class represents an interest in the same portfolio of
investments, but has different charges and expenses, allowing
you to choose the class that best meets your needs. For an
analysis of the fees associated with an investment in each share
class or other similar funds, please visit
www.finra.org/fundanalyzer. When choosing a share class, you
should consider:
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how much you plan to invest;
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how long you expect to own the shares;
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the expenses paid by each class; and
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for Class A Shares and Class C Shares, whether you
qualify for any reduction or waiver of any sales charges.
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You should also consult your financial intermediary about which
class is most suitable for you. In addition, you should consider
the factors below with respect to each class of shares:
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Class A Shares
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Initial sales charge on purchases
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Up to
5.75%(1)
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reduction of initial sales charge for purchases of
$50,000 or more
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initial sales charge waived for purchases of
$1 million or more
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Deferred sales charge (CDSC)
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None except on certain redemptions of shares purchased without
an initial sales
charge(1)
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Administrative fees
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Pays administrative, networking or omnibus fees to certain
intermediaries, and out-of-pocket costs to Janus Services
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Minimum initial investment
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$2,500
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Maximum purchase
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None
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Minimum aggregate account balance
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None
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12b-1 fee
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0.25% annual distribution/service fee
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Class C Shares
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Initial sales charge on purchases
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None
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Deferred sales charge (CDSC)
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1.00% on Shares redeemed within 12 months of
purchase(1)
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Administrative fees
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Pays administrative, networking or omnibus fees to certain
intermediaries, and out-of-pocket costs to Janus Services
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Minimum initial investment
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$2,500
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Maximum purchase
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$500,000
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Minimum aggregate account balance
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None
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12b-1 fee
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1.00% annual fee (up to 0.75% distribution fee and up to 0.25%
shareholder servicing fee)
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Class D Shares
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Initial sales charge on purchases
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None
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Deferred sales charge (CDSC)
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None
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Administrative services fees
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0.12%
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Minimum initial investment
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$2,500
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Maximum purchase
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None
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Minimum aggregate account balance
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None
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12b-1 fee
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None
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C-3
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Class S Shares
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Initial sales charge on purchases
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None
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Deferred sales charge (CDSC)
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None
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Administrative services fees
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0.25%
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Minimum initial investment
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$2,500
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Maximum purchase
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None
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Minimum aggregate account balance
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None
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12b-1 fee
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0.25% annual distribution/service fee
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Class I Shares
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Initial sales charge on purchases
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None
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Deferred sales charge (CDSC)
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None
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Administrative fees
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Pays administrative, networking or omnibus fees to certain
intermediaries, and out-of-pocket costs to Janus Services
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Minimum initial investment
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institutional investors (investing directly with
Janus)
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$1,000,000
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through an intermediary institution
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$2,500
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Maximum purchase
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None
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Minimum aggregate account balance
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None
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12b-1 fee
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None
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Class T Shares
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Initial sales charge on purchases
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None
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Deferred sales charge (CDSC)
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None
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Administrative services fees
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0.25%
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Minimum initial investment
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$2,500
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Maximum purchase
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None
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Minimum aggregate account balance
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None
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12b-1 fee
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None
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(1) |
May be waived under certain circumstances.
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DISTRIBUTION,
SERVICING, AND ADMINISTRATIVE FEES
Distribution
and Shareholder Servicing Plans
Under separate distribution and shareholder servicing plans
adopted in accordance with
Rule 12b-1
under the 1940 Act for Class A Shares and Class S
Shares (each a Plan) and Class C Shares (the
Class C Plan), the Fund may pay Janus
Distributors LLC (Janus Distributors), the
Trusts distributor, a fee for the sale and distribution
and/or
shareholder servicing of the shares based on the average daily
net assets of each, at the following annual rates:
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Class
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12b-1 Fee for the Fund
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Class A Shares
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0.25
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%
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Class C Shares
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1.00
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%(1)
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Class S Shares
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0.25
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%
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(1) |
Up to 0.75% of this fee is for distribution services and up to
0.25% of this fee is for shareholder services.
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Under the terms of each 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.
Janus Distributors is entitled to retain all fees paid under the
Class C Plan for the first 12 months on any investment
in Class C Shares to recoup its expenses with respect to
the payment of commissions on sales of Class C Shares.
Financial intermediaries will
C-4
become eligible for compensation under the Class C Plan
beginning in the 13th month following the purchase of
Class C Shares, although Janus Distributors may, pursuant
to a written agreement between Janus Distributors and a
particular financial intermediary, pay such financial
intermediary
12b-1 fees
prior to the 13th month following the purchase of
Class C Shares.
Financial intermediaries may from time to time be required to
meet certain criteria in order to receive
12b-1 fees.
Janus Distributors is entitled to retain some or all fees
payable under each Plan in certain circumstances, including when
there is no broker of record or when certain qualification
standards have not been met by the broker of record.
Because
12b-1 fees
are paid out of the Funds assets on an ongoing basis, over
time they will increase the cost of your investment and may cost
you more than paying other types of sales charges.
Administrative
Fees
Class A
Shares, Class C Shares, and Class I Shares
Certain, but not all, intermediaries may charge fees for
administrative services, including recordkeeping, subaccounting,
order processing for omnibus or networked accounts, or other
shareholder services provided by intermediaries on behalf of the
shareholders of the Fund. 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. Other shareholder
services may include the provision of order confirmations,
periodic account statements, forwarding prospectuses,
shareholder reports, and other materials to existing customers,
and answering inquiries regarding accounts. Janus Services
remits these administrative fees to intermediaries on behalf of
the Fund. Janus Services is then reimbursed by the Fund for such
payments. Because the form and amount charged varies by
intermediary, the amount of the administrative fee borne by the
class is an average of all fees charged by intermediaries. In
the event an intermediary receiving payments from Janus Services
on behalf of the Fund converts from a networking structure to an
omnibus account structure, or otherwise experiences increased
costs, fees borne by the shares may increase. The Funds
Trustees have set limits on fees that the Fund may incur with
respect to order processing for omnibus or networked accounts.
Such limits are subject to change by the Trustees in the future.
Janus Services also seeks reimbursement for costs it incurs as
transfer agent and for providing servicing.
Class S
Shares and Class T Shares
Janus Services, the Trusts transfer agent, receives an
administrative services fee at an annual rate of 0.25% of the
average daily net assets of Class S Shares and Class T
Shares of the Fund for providing, or arranging for the provision
by intermediaries of, administrative services, including
recordkeeping, subaccounting, order processing for omnibus or
networked accounts, or other shareholder services provided on
behalf of shareholders of the Fund. Order processing includes
the submission of transactions through the NSCC or similar
systems, or those processed on a manual basis with Janus. Other
shareholder services may include the provision of order
confirmations, periodic account statements, forwarding
prospectuses, shareholder reports, and other materials to
existing customers, and answering inquiries regarding accounts.
Janus Services expects to use all or a significant portion of
this fee to compensate intermediaries and retirement plan
service providers for providing these services to their
customers who invest in the Fund. 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 the Fund.
PAYMENTS
TO FINANCIAL INTERMEDIARIES BY JANUS OR ITS AFFILIATES
From its own assets, Janus or its affiliates may pay selected
brokerage firms or other financial intermediaries that sell
Class A and Class C Shares of the Janus funds for
distribution, marketing, promotional, or related services. Such
payments may be based on gross sales, assets under management,
or transactional charges, or on a combination of these factors.
The amount of these payments is determined from time to time by
Janus, may be substantial, and may differ for different
financial intermediaries. Payments based primarily on sales
create an incentive to make new sales of shares, while payments
based on assets create an incentive to retain previously sold
shares. Sales- and asset-based payments currently range up to
25 basis points on sales and up to 20 basis points on
average annual net assets of shares held through the
intermediary and are subject to change. Payments based on
transactional charges may include the payment or reimbursement
of all or a portion of ticket charges. Ticket
charges are fees charged to salespersons purchasing through a
financial intermediary firm in connection with mutual fund
purchases, redemptions, or exchanges. The payment or
reimbursement of ticket charges creates an incentive for
salespersons of an intermediary to sell shares of Janus funds
over shares of funds for which there is lesser or no payment or
reimbursement of any applicable ticket charge. Janus and its
affiliates consider a number of factors in making payments to
financial intermediaries, including the distribution
capabilities of the intermediary, the overall quality of the
relationship, expected gross
and/or net
sales generated by the relationship, redemption and retention
rates of assets held through the intermediary, the willingness
of the intermediary to cooperate with Janus marketing
C-5
efforts, access to sales personnel, and the anticipated
profitability of sales through the institutional relationship.
These factors may change from time to time. Currently, these
payments are limited to the top 100 distributors (measured by
sales or expected sales of shares of the Janus funds).
Broker-dealer firms currently receiving or expected to receive
these fees are listed in the Funds combined SAI, which is
incorporated by reference herein.
In addition, for most share classes, Janus, Janus Distributors,
or their affiliates may pay fees, from their own assets, to
brokerage firms, banks, financial advisors, retirement plan
service providers, and other financial intermediaries for
providing other marketing or distribution-related services, as
well as recordkeeping, subaccounting, transaction processing,
and other shareholder or administrative services (including
payments for processing transactions via NSCC or other means) in
connection with investments in the Janus funds. These fees are
in addition to any fees that may be paid by the Janus funds for
these types of services or other services.
Janus or its affiliates may also share certain marketing
expenses with intermediaries, or pay for or sponsor
informational meetings, seminars, client awareness events,
support for marketing materials, sales reporting, or business
building programs for such intermediaries to raise awareness of
the Fund. Janus or its affiliates may make payments to
participate in intermediary marketing support programs which may
provide Janus or its affiliates with one or more of the
following benefits: attendance at sales conferences,
participation in meetings or training sessions, access to or
information about intermediary personnel, use of an
intermediarys marketing and communication infrastructure,
fund analysis tools, business planning and strategy sessions
with intermediary personnel, information on industry- or
platform-specific developments, trends and service providers,
and other marketing-related services. Such payments may be in
addition to, or in lieu of, the payments described above. These
payments are intended to promote the sales of Janus funds and to
reimburse financial intermediaries, directly or indirectly, for
the costs that they or their salespersons incur in connection
with educational seminars, meetings, and training efforts about
the Janus funds to enable the intermediaries and their
salespersons to make suitable recommendations, provide useful
services, and maintain the necessary infrastructure to make the
Janus funds available to their customers.
The receipt of (or prospect of receiving) payments,
reimbursements and other forms of compensation described above
may provide a financial intermediary and its salespersons with
an incentive to favor sales of Janus funds shares over
sales of other mutual funds (or non-mutual fund investments) or
to favor sales of one class of Janus funds shares over
sales of another Janus funds share class, with respect to
which the financial intermediary does not receive such payments
or receives them in a lower amount. The receipt of these
payments may cause certain financial intermediaries to elevate
the prominence of the Janus funds within such financial
intermediarys organization by, for example, placement on a
list of preferred or recommended funds
and/or the
provision of preferential or enhanced opportunities to promote
the Janus funds in various ways within such financial
intermediarys organization.
From time to time, certain financial intermediaries approach
Janus to request that Janus make contributions to certain
charitable organizations. In these cases, Janus
contribution may result in the financial intermediary, or its
salespersons, recommending Janus funds over other mutual funds
(or non-mutual fund investments).
The payment arrangements described above will not change the
price an investor pays for shares nor the amount that a Janus
fund receives to invest on behalf of the investor. You should
consider whether such arrangements exist when evaluating any
recommendations from an intermediary to purchase or sell shares
of the Fund and, if applicable, when considering which share
class of the Fund is most appropriate for you.
PURCHASES
With the exception of Class D Shares and Class I
Shares, purchases of shares may generally be made only through
institutional channels such as financial intermediaries and
retirement platforms. Class I Shares may be purchased
directly with the Fund in certain circumstances as described in
the Minimum Investment Requirements section. Contact
your financial intermediary, a Janus representative
(1-800-333-1181)
if you hold Class I Shares directly with Janus, or refer to
your plan documents for information on how to invest in the
Fund, including additional information on minimum initial or
subsequent investment requirements. Under certain circumstances,
the Fund may permit an in-kind purchase of shares at the
discretion of Janus. Your financial intermediary may charge you
a separate or additional fee for processing purchases of shares.
Only certain financial intermediaries are authorized to receive
purchase orders on the Funds behalf. As discussed under
Payments to financial intermediaries by Janus or its
affiliates, Janus and its affiliates may make payments to
brokerage firms or other financial intermediaries that were
instrumental in the acquisition or retention of shareholders for
the Fund or that provide services in connection with investments
in the Fund. You should consider such arrangements when
evaluating any recommendation of the Fund.
C-6
The Fund reserves the right to reject any purchase order,
including exchange purchases, for any reason. The Fund is not
intended for excessive trading. For more information about the
Funds policy on excessive trading, refer to
Excessive Trading.
In compliance with the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001 (USA PATRIOT Act), your
financial intermediary (or Janus if you hold shares directly
with Janus) is required to verify certain information on your
account application as part of its Anti-Money Laundering
Program. You will be required to provide your full name, date of
birth, social security number, and permanent street address to
assist in verifying your identity. You may also be asked to
provide documents that may help to establish your identity.
Until verification of your identity is made, your financial
intermediary may temporarily limit additional share purchases.
In addition, your financial intermediary may close an account if
they are unable to verify a shareholders identity. Please
contact your financial intermediary if you need additional
assistance when completing your application or additional
information about the intermediarys Anti-Money Laundering
Program.
In an effort to ensure compliance with this law, Janus
Anti-Money Laundering Program (the Program) provides
for the development of internal practices, procedures and
controls, designation of anti-money laundering compliance
officers, an ongoing training program, and an independent audit
function to determine the effectiveness of the Program.
Minimum
Investment Requirements
Class A
Shares, Class C Shares, Class S Shares, and
Class T Shares
The minimum investment is $2,500 per Fund account for
non-retirement accounts and $500 per Fund account for certain
tax-deferred accounts or UGMA/UTMA accounts. Investors in a
defined contribution plan through a third party administrator
should refer to their plan document or contact their plan
administrator for additional information. In addition, accounts
held through certain wrap programs may not be subject to these
minimums. Investors should refer to their intermediary for
additional information.
The maximum purchase in Class C Shares is $500,000 for any
single purchase. The sales charge and expense structure of
Class A Shares may be more advantageous for investors
purchasing more than $500,000 of Fund shares.
Class I
Shares
The minimum investment is $1 million for institutional
investors investing directly with Janus. Institutional investors
generally may meet the minimum investment amount by aggregating
multiple accounts within the same Fund. Accounts offered through
an intermediary institution must meet the minimum investment
requirements of $2,500 per Fund account for non-retirement
accounts and $500 per Fund account for certain tax-deferred
accounts or UGMA/UTMA accounts. Directors, officers, and
employees of Janus Capital Group Inc. (JCGI) and its
affiliates, as well as Trustees and officers of the Fund, may
purchase Class I Shares through certain financial
intermediaries institutional platforms. For more
information about this program and eligibility requirements,
please contact a Janus representative at
1-800-333-1181.
Exceptions to these minimums may apply for certain tax-deferred,
tax-qualified and retirement plans, and accounts held through
certain wrap programs. For additional information, contact your
intermediary, plan sponsor, administrator, or a Janus
representative, as applicable.
For All
Classes of Shares
The Fund reserves the right to annually request that
intermediaries close Fund accounts that are valued at less than
$100, other than as a result solely of depreciation in share
value. Certain accounts held through intermediaries may not be
subject to closure due to the policies of the intermediaries.
You may receive written notice from your intermediary to
increase your account balance to the required minimum to avoid
having your account closed. If you hold Class I Shares
directly with the Fund, you may receive written notice prior to
the closure of your Fund account so that you may increase your
account balance to the required minimum. Please note that you
may incur a tax liability as a result of a redemption.
The Fund reserves the right to change the amount of these
minimums or maximums from time to time or to waive them in whole
or in part.
Systematic
Purchase Plan
You may arrange for periodic purchases by authorizing your
financial intermediary (or Janus if you hold shares directly
with Janus) to withdraw the amount of your investment from your
bank account on a day or days you specify. Not all financial
intermediaries offer this plan. Contact your financial
intermediary or a Janus representative for details.
C-7
Initial
Sales Charge
Class A
Shares
An initial sales charge may apply to your purchase of
Class A Shares of the Fund based on the amount invested, as
set forth in the table below. The sales charge is allocated
between Janus Distributors and your financial intermediary.
Sales charges, as expressed as a percentage of offering price
and as a percentage of your net investment, are shown in the
table. The dollar amount of your initial sales charge is
calculated as the difference between the public offering price
and the net asset value of those shares. Since the offering
price is calculated to two decimal places using standard
rounding criteria, the number of shares purchased and the dollar
amount of your sales charge as a percentage of the offering
price and of your net investment may be higher or lower than the
amounts set forth in the table depending on whether there was a
downward or upward rounding.
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Class A Shares
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Class A Shares
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Sales Charge as a
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Sales Charge as a
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Percentage of
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Percentage of
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Amount of Purchase at Offering Price
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Offering
Price(1)
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Net Amount Invested
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Under $50,000
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5.75
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%
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6.10
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%
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$50,000 but under $100,000
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4.50
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%
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4.71
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%
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$100,000 but under $250,000
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3.50
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%
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3.63
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%
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$250,000 but under $500,000
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2.50
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%
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2.56
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%
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$500,000 but under $1,000,000
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2.00
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%
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2.04
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%
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$1,000,000 and above
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None
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(2)
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None
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(1)
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Offering Price includes the initial
sales charge.
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(2)
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A contingent deferred sales charge
of 1.00% may apply to Class A Shares purchased without an
initial sales charge if redeemed within 12 months of
purchase.
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For purchases of Class A Shares of $1,000,000 or greater,
from its own assets, Janus Distributors may pay financial
intermediaries commissions as follows:
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1.00% on amounts from $1,000,000 to $4,000,000;
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plus 0.50% on amounts greater than $4,000,000 to $10,000,000;
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plus 0.25% on amounts over $10,000,000.
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The purchase totals eligible for these commissions are
aggregated on a rolling one year basis so that the rate payable
resets to the highest rate annually.
Qualifying
for a Reduction or Waiver of Class A Shares Sales
Charge
You may be able to lower your Class A Shares sales charge
under certain circumstances. For example, you can combine
Class A Shares and Class C Shares you already own
(either in this Fund or certain other Janus funds) with your
current purchase of Class A Shares of the Fund and certain
other Janus funds (including Class C Shares of those funds)
to take advantage of the breakpoints in the sales charge
schedule as set forth above. Certain circumstances under which
you may combine such ownership of shares and purchases are
described below. Contact your financial intermediary for more
information.
Class A Shares of the Fund may be purchased without an
initial sales charge by the following persons (and their spouses
and children under 21 years of age): (i) registered
representatives and other employees of intermediaries that have
selling agreements with Janus Distributors to sell Class A
Shares; (ii) directors, officers, and employees of JCGI and
its affiliates; and (iii) Trustees and officers of the
Trust. In addition, the initial sales charge may be waived on
purchases of Class A Shares through financial
intermediaries that have entered into an agreement with Janus
Distributors that allows the waiver of the sales charge.
In order to obtain a sales charge discount, you should inform
your financial intermediary of other accounts in which there are
Fund holdings eligible to be aggregated to meet a sales charge
breakpoint. These other accounts may include the accounts
described under Aggregating Accounts. You may need
to provide documents such as account statements or confirmation
statements to prove that the accounts are eligible for
aggregation. The Letter of Intent described below requires
historical cost information in certain circumstances. You should
retain records necessary to show the price you paid to purchase
Fund shares, as the Fund, its agents, or your financial
intermediary may not retain this information.
Right of Accumulation. You may purchase
Class A Shares of the Fund at a reduced sales charge
determined by aggregating the dollar amount of the new purchase
(measured by the offering price) and the total prior days
net asset value (net amount
C-8
invested) of all Class A Shares of the Fund and of certain
other classes (Class A Shares and Class C Shares of
the Trust) of Janus funds then held by you, or held in accounts
identified under Aggregating Accounts, and applying
the sales charge applicable to such aggregate amount. In order
for your purchases and holdings to be aggregated for purposes of
qualifying for such discount, they must have been made through
one financial intermediary and you must provide sufficient
information to your financial intermediary at the time of
purchase to permit verification that the purchase qualifies for
the reduced sales charge. The right of accumulation is subject
to modification or discontinuance at any time with respect to
all shares purchased thereafter.
Letter of Intent. You may obtain a
reduced sales charge on Class A Shares by signing a Letter
of Intent indicating your intention to purchase $50,000 or more
of Class A Shares (including Class A Shares in other
series of the Trust) over a
13-month
period. The term of the Letter of Intent will commence upon the
date you sign the Letter of Intent. You must refer to such
Letter when placing orders. With regard to a Letter of Intent,
the amount of investment for purposes of applying the sales load
schedule includes (i) the historical cost (what you
actually paid for the shares at the time of purchase, including
any sales charges) of all Class A Shares acquired during
the term of the Letter of Intent, minus (ii) the value of
any redemptions of Class A Shares made during the term of
the Letter of Intent. Each investment made during the period
receives the reduced sales charge applicable to the total amount
of the investment goal. A portion of shares purchased may be
held in escrow to pay for any sales charge that may be
applicable. If the goal is not achieved within the period, you
must pay the difference between the sales charges applicable to
the purchases made and the charges previously paid, or an
appropriate number of escrowed shares will be redeemed. Please
contact your financial intermediary to obtain a Letter of Intent
application.
Aggregating Accounts. To take advantage
of lower Class A Shares sales charges on large purchases or
through the exercise of a Letter of Intent or right of
accumulation, investments made by you, your spouse, and your
children under age 21 may be aggregated if made for your
own account(s)
and/or
certain other accounts such as:
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trust accounts established by the above individuals (or the
accounts of the primary beneficiary of the trust if the person
who established the trust is deceased);
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solely controlled business accounts; and
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single participant retirement plans.
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To receive a reduced sales charge under rights of accumulation
or a Letter of Intent, you must notify your financial
intermediary of any eligible accounts that you, your spouse, and
your children under age 21 have at the time of your
purchase.
You may access information regarding sales loads, breakpoint
discounts, and purchases of the Funds shares, free of
charge, and in a clear and prominent format, on our website at
janus.com/breakpoints, and by following the appropriate
hyperlinks to the specific information.
Commission
on Class C Shares
Janus Distributors may compensate your financial intermediary at
the time of sale at a commission rate of 1.00% of the net asset
value of the Class C Shares purchased. Service providers to
qualified plans or other financial intermediaries will not
receive this amount if they receive
12b-1 fees
from the time of initial investment of assets in Class C
Shares.
EXCHANGES
Contact your financial intermediary, Janus if you hold shares
directly with Janus, or consult your plan documents to exchange
into other funds in the Trust. Be sure to read the prospectus of
the fund into which you are exchanging. An exchange from one
fund to another is generally a taxable transaction (except for
certain tax-deferred accounts).
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You may generally exchange shares of the Fund for shares of the
same class of any other fund in the Trust offered through your
financial intermediary or qualified plan.
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You may also exchange shares of one class for another class of
shares within the same fund, provided the eligibility
requirements of the class of shares to be received are met.
Same-fund exchanges will only be processed in instances where
there is no contingent deferred sales charge (CDSC)
on the shares to be exchanged and no initial sales charge on the
shares to be received. The Funds fees and expenses differ
between share classes. Please consider these differences prior
to investing in another share class. Contact your financial
intermediary or consult your plan documents for additional
information.
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You must meet the minimum investment amount for each fund.
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The exchange privilege is not intended as a vehicle for
short-term or excessive trading. The Fund may suspend or
terminate your exchange privilege if you make more than one
round trip in the Fund in a
90-day
period and may bar future purchases in the Fund or any of the
other Janus funds. The Fund will work with intermediaries to
apply the Funds exchange limit.
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C-9
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However, the Fund may not always have the ability to monitor or
enforce the trading activity in such accounts. For more
information about the Funds policy on excessive trading,
refer to Excessive Trading.
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The Fund reserves the right to reject any exchange request and
to modify or terminate the exchange privilege at any time.
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Waiver of
Sales Charges
Class A Shares received through an exchange of Class A
Shares of another fund of the Trust will not be subject to any
initial sales charge of the Funds Class A Shares.
Class A Shares or Class C Shares received through an
exchange of Class A Shares or Class C Shares,
respectively, of another fund of the Trust will not be subject
to any applicable CDSC at the time of the exchange. Any CDSC
applicable to redemptions of Class A Shares or Class C
Shares will continue to be measured on the shares received by
exchange from the date of your original purchase. For more
information about the CDSC, please refer to
Redemptions. While Class C Shares do not have
any front-end sales charges, their higher annual fund operating
expenses mean that over time, you could end up paying more than
the equivalent of the maximum allowable front-end sales charge.
REDEMPTIONS
Redemptions, like purchases, may generally be effected only
through financial intermediaries, retirement platforms, and by
certain direct investors holding Class I Shares. Please
contact your financial intermediary, Janus if you hold shares
directly Janus, or refer to the appropriate plan documents for
details. Your financial intermediary may charge a processing or
service fee in connection with the redemption of shares.
Shares of the Fund may be redeemed on any business day on which
the Funds NAV is calculated. Redemptions are duly
processed at the NAV next calculated after your redemption order
is received in good order by the Fund or its agents. Redemption
proceeds, less any applicable CDSC for Class A Shares or
Class C Shares, will normally be sent the business day
following receipt of the redemption order.
The Fund reserves the right to postpone payment of redemption
proceeds for up to seven calendar days. Additionally, the right
to require the Fund to redeem its shares may be suspended, or
the date of payment may be postponed beyond seven calendar days,
whenever: (i) trading on the NYSE is restricted, as
determined by the SEC, or the NYSE is closed (except for
holidays and weekends); (ii) the SEC permits such
suspension and so orders; or (iii) an emergency exists as
determined by the SEC so that disposal of securities or
determination of NAV is not reasonably practicable.
The Fund reserves the right to annually request that
intermediaries close Fund accounts that are valued at less than
$100, other than as a result solely of depreciation in share
value. Certain accounts held through intermediaries may not be
subject to closure due to the policies of the intermediaries.
You may receive written notice from your intermediary to
increase your account balance to the required minimum to avoid
having your account closed. If you hold Class I Shares
directly with the Fund, you may receive written notice prior to
the closure of your Fund account so that you may increase your
account balance to the required minimum. Please note that you
may incur a tax liability as a result of a redemption.
Large
Shareholder Redemptions
Certain accounts or Janus affiliates may from time to time own
(beneficially or of record) or control a significant percentage
of the Funds shares. Redemptions by these accounts of
their holdings in the Fund may impact the Funds liquidity
and NAV. These redemptions may also force the Fund to sell
securities, which may negatively impact the Funds
brokerage costs.
Redemptions
In-Kind
Shares normally will be redeemed for cash, although the Fund
retains the right to redeem some or all of its shares in-kind
under unusual circumstances, in order to protect the interests
of remaining shareholders, to accommodate a request by a
particular shareholder that does not adversely affect the
interests of the remaining shareholders, or in connection with
the liquidation of a fund, by delivery of securities selected
from its assets at its discretion. However, the Fund is required
to redeem shares solely for cash up to the lesser of $250,000 or
1% of the NAV of the Fund during any
90-day
period for any one shareholder. Should redemptions by any
shareholder exceed such limitation, the Fund will have the
option of redeeming the excess in cash or in-kind. In-kind
payment means payment will be made in portfolio securities
rather than cash. If this occurs, the redeeming shareholder
might incur brokerage or other transaction costs to convert the
securities to cash, whereas such costs are borne by the Fund for
cash redemptions.
While the Fund may pay redemptions in-kind, the Fund may instead
choose to raise cash to meet redemption requests through the
sale of fund securities or permissible borrowings. If the Fund
is forced to sell securities at an unfavorable time
and/or under
unfavorable conditions, such sales may adversely affect the
Funds NAV and may increase brokerage costs.
C-10
Systematic
Withdrawal Plan
Class A
Shares and Class C Shares
You may arrange for periodic redemptions of Class A Shares
or Class C Shares by authorizing your financial
intermediary to redeem a specified amount from your account on a
day or days you specify. Any resulting CDSC may be waived
through financial intermediaries that have entered into an
agreement with Janus Distributors. The maximum annual rate at
which shares subject to a CDSC may be redeemed, pursuant to a
systematic withdrawal plan, without paying a CDSC, is 12% of the
net asset value of the account. Certain other terms and minimums
may apply. Not all financial intermediaries offer this plan.
Contact your financial intermediary for details.
Class S
Shares, Class I Shares, and Class T Shares
You may arrange for periodic redemptions by authorizing your
financial intermediary (or Janus if you hold shares directly
with Janus) to redeem a specified amount from your account on a
day or days you specify. Not all financial intermediaries offer
this plan. Contact your financial intermediary or a Janus
representative for details.
Contingent
Deferred Sales Charge
Class A
Shares and Class C Shares
A 1.00% CDSC may be deducted with respect to Class A Shares
purchased without an initial sales charge if redeemed within
12 months of purchase, unless any of the CDSC waivers
listed apply. A 1.00% CDSC will be deducted with respect to
Class C Shares redeemed within 12 months of purchase,
unless a CDSC waiver applies. The CDSC will be based on the
lower of the original purchase price or the value of the
redemption of the Class A Shares or Class C Shares
redeemed, as applicable.
CDSC
Waivers
There are certain cases in which you may be exempt from a CDSC
charged to Class A Shares and Class C Shares. Among
others, these include:
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Upon the death or disability of an account owner;
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Retirement plans and certain other accounts held through a
financial intermediary that has entered into an agreement with
Janus Distributors to waive CDSCs for such accounts;
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Retirement plan shareholders taking required minimum
distributions;
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The redemption of Class A Shares or Class C Shares
acquired through reinvestment of Fund dividends or distributions;
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The portion of the redemption representing appreciation as a
result of an increase in NAV above the total amount of payments
for Class A Shares or Class C Shares during the period
during which the CDSC applied; or
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If the Fund chooses to liquidate or involuntarily redeem shares
in your account.
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To keep the CDSC as low as possible, Class A Shares or
Class C Shares not subject to any CDSC will be redeemed
first, followed by shares held longest.
Reinstatement
Privilege
After you have redeemed Class A Shares, you have a one-time
right to reinvest the proceeds into Class A Shares of the
same or another fund within 90 days of the redemption date
at the current NAV (without an initial sales charge). You will
not be reimbursed for any CDSC paid on your redemption of
Class A Shares.
EXCESSIVE
TRADING
Excessive
Trading Policies and Procedures
The Trustees have adopted policies and procedures with respect
to short-term and excessive trading of Fund shares
(excessive trading). The Fund is intended for
long-term investment purposes only, and the Fund will take
reasonable steps to attempt to detect and deter short-term and
excessive trading. Transactions placed in violation of the
Funds exchange limits or excessive trading policies may be
cancelled or revoked by the Fund by the next business day
following receipt by the Fund. The trading history of accounts
determined to be under common ownership or control within any of
the Janus funds may be considered in enforcing these policies
and procedures. As described below, however, the Fund may not be
able to identify all instances of excessive trading or
completely eliminate the possibility of excessive trading. In
particular, it may be difficult to identify excessive trading in
certain omnibus accounts and other accounts traded through
intermediaries. By their nature, omnibus accounts, in which
purchases and redemptions of the Funds shares by multiple
investors are aggregated by the intermediary and presented to
the Fund
C-11
on a net basis, may effectively conceal the identity of
individual investors and their transactions from the Fund and
its agents. This makes the elimination of excessive trading in
the accounts impractical without the assistance of the
intermediary.
The Fund attempts to deter excessive trading through at least
the following methods:
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exchange limitations as described under Exchanges;
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trade monitoring; and
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fair valuation of securities as described under Pricing of
Fund Shares.
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Generally, a purchase and redemption of shares from the Fund
(i.e., round trip) within 90 calendar days may
result in enforcement of the Funds excessive trading
policies and procedures with respect to future purchase orders,
provided that the Fund reserves the right to reject any purchase
request as explained above.
The Fund monitors for patterns of shareholder frequent trading
and may suspend or permanently terminate the exchange privilege
of any investor who makes more than one round trip in the Fund
over a
90-day
period, and may bar future purchases into the Fund and any of
the other Janus funds by such investor. The Funds
excessive trading policies generally do not apply to (i) a
money market fund, although money market funds at all times
reserve the right to reject any purchase request (including
exchange purchases) for any reason without prior notice;
(ii) transactions in the Janus funds by a Janus fund
of funds, which is a fund that primarily invests in other
Janus mutual funds; and (iii) identifiable transactions by
certain funds of funds and asset allocation programs to realign
portfolio investments with existing target allocations.
The Funds Trustees may approve from time to time a
redemption fee to be imposed by any Janus fund, subject to
60 days notice to shareholders of that fund.
Investors who place transactions through the same financial
intermediary on an omnibus basis may be deemed part of a group
for the purpose of the Funds excessive trading policies
and procedures and may be rejected in whole or in part by the
Fund. The Fund, however, cannot always identify or reasonably
detect excessive trading that may be facilitated by financial
intermediaries or made difficult to identify through the use of
omnibus accounts by those intermediaries that transmit purchase,
exchange, and redemption orders to the Fund, and thus the Fund
may have difficulty curtailing such activity. Transactions
accepted by a financial intermediary in violation of the
Funds excessive trading policies may be cancelled or
revoked by the Fund by the next business day following receipt
by the Fund.
In an attempt to detect and deter excessive trading in omnibus
accounts, the Fund or its agents may require intermediaries to
impose restrictions on the trading activity of accounts traded
through those intermediaries. Such restrictions may include, but
are not limited to, requiring that trades be placed by
U.S. mail, prohibiting future purchases by investors who
have recently redeemed Fund shares, requiring intermediaries to
report information about customers who purchase and redeem large
amounts, and similar restrictions. The Funds ability to
impose such restrictions with respect to accounts traded through
particular intermediaries may vary depending on the
systems capabilities, applicable contractual and legal
restrictions, and cooperation of those intermediaries.
Certain transactions in Fund shares, such as periodic
rebalancing through intermediaries (no more frequently than
every 60 days) or those which are made pursuant to
systematic purchase, exchange, or redemption programs generally
do not raise excessive trading concerns and normally do not
require application of the Funds methods to detect and
deter excessive trading.
The Fund also reserves the right to reject any purchase request
(including exchange purchases) by any investor or group of
investors for any reason without prior notice, including, in
particular, if the trading activity in the account(s) is deemed
to be disruptive to the Fund. For example, the Fund may refuse a
purchase order if the Funds portfolio manager believes he
would be unable to invest the money effectively in accordance
with the Funds investment policies or the Fund would
otherwise be adversely affected due to the size of the
transaction, frequency of trading, or other factors.
The Funds policies and procedures regarding excessive
trading may be modified at any time by the Funds Trustees.
Excessive
Trading Risks
Excessive trading may present risks to the Funds long-term
shareholders. Excessive trading into and out of the Fund may
disrupt portfolio investment strategies, may create taxable
gains to remaining Fund shareholders, and may increase Fund
expenses, all of which may negatively impact investment returns
for all remaining shareholders, including long-term shareholders.
Funds that invest in foreign securities may be at a greater risk
for excessive trading. Investors may attempt to take advantage
of anticipated price movements in securities held by a fund
based on events occurring after the close of a foreign market
that may not be reflected in the funds NAV (referred to as
price arbitrage). Such arbitrage opportunities may
also arise in funds which do not
C-12
invest in foreign securities, for example, when trading in a
security held by a fund is halted and does not resume prior to
the time the fund calculates its NAV (referred to as stale
pricing). Funds that hold thinly-traded securities, such
as certain small-capitalization securities, may be subject to
attempted use of arbitrage techniques. To the extent that the
Funds valuation of a security differs from the
securitys market value, short-term arbitrage traders may
dilute the NAV of the Fund, which negatively impacts long-term
shareholders. Although the Fund has adopted fair valuation
policies and procedures intended to reduce the Funds
exposure to price arbitrage, stale pricing, and other potential
pricing inefficiencies, under such circumstances there is
potential for short-term arbitrage trades to dilute the value of
Fund shares.
Although the Fund takes steps to detect and deter excessive
trading pursuant to the policies and procedures described in
this Prospectus and approved by the Trustees, there is no
assurance that these policies and procedures will be effective
in limiting excessive trading in all circumstances. For example,
the Fund may be unable to completely eliminate the possibility
of excessive trading in certain omnibus accounts and other
accounts traded through intermediaries. Omnibus accounts may
effectively conceal the identity of individual investors and
their transactions from the Fund and its agents. This makes the
Funds identification of excessive trading transactions in
the Fund through an omnibus account difficult and makes the
elimination of excessive trading in the account impractical
without the assistance of the intermediary. Although the Fund
encourages intermediaries to take necessary actions to detect
and deter excessive trading, some intermediaries may be unable
or unwilling to do so, and accordingly, the Fund cannot
eliminate completely the possibility of excessive trading.
Shareholders that invest through an omnibus account should be
aware that they may be subject to the policies and procedures of
their financial intermediary with respect to excessive trading
in the Fund.
AVAILABILITY
OF PORTFOLIO HOLDINGS INFORMATION
The Mutual Fund Holdings Disclosure Policies and Procedures
adopted by Janus and all mutual funds managed within the Janus
fund complex are designed to be in the best interests of the
funds and to protect the confidentiality of the funds
portfolio holdings. The following describes policies and
procedures with respect to disclosure of portfolio holdings.
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Full Holdings. The Fund is required to
disclose its complete holdings in the quarterly holdings report
on
Form N-Q
within 60 days of the end of the first and third fiscal
quarters, and in the annual report and semiannual report to Fund
shareholders. These reports (i) are 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) are available without charge, upon request, by
calling a Janus representative at
1-800-525-0020
(toll free). Portfolio holdings, consisting of at least the
names of the holdings, are generally available on a calendar
quarter-end basis with a
30-day lag.
Holdings are generally posted approximately two business days
thereafter under Full Holdings for the Fund at janus.com/info.
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The Fund may provide, upon request, historical full holdings on
a monthly basis for periods prior to the previous quarter-end
subject to a written confidentiality agreement.
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Top Holdings. The Funds top
portfolio holdings, in order of position size and as a
percentage of the Funds total portfolio, are available
monthly with a
15-day lag
and on a calendar quarter-end basis with a
15-day lag.
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Other Information. The Fund may
occasionally provide security breakdowns (e.g., industry,
sector, regional, market capitalization, and asset allocation),
top performance contributors/detractors (consisting of security
names in alphabetical order), and specific portfolio level
performance attribution information and statistics monthly with
a 15-day lag
and on a calendar quarter-end basis with a
15-day lag.
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Full portfolio holdings will remain available on the Janus
websites at least until a
Form N-CSR
or
Form N-Q
is filed with the SEC for the period that includes the date as
of which the website information is current. Funds disclose
their short positions, if applicable, only to the extent
required in regulatory reports. Janus may exclude from
publication on its websites all or any portion of portfolio
holdings or change the time periods of disclosure as deemed
necessary to protect the interests of the Janus funds. Under
extraordinary circumstances, exceptions to the Mutual
Fund Holdings Disclosure Policies and Procedures may be
made by Janus Chief Investment Officer(s) or their
delegates. Such exceptions may be made without prior notice to
shareholders. A summary of the Funds portfolio holdings
disclosure policies and procedures, which includes a discussion
of any exceptions, is contained in the Funds combined SAI,
which is incorporated herein.
C-13
SHAREHOLDER
COMMUNICATIONS
Your financial intermediary or plan sponsor (or Janus if you
hold shares directly with Janus) is responsible for sending you
periodic statements of all transactions, along with trade
confirmations and tax reporting, as required by applicable law.
Your financial intermediary or plan sponsor (or Janus if you
hold shares directly with Janus) is responsible for providing
annual and semiannual reports, including the financial
statements of the Fund. These reports show the Funds
investments and the market value of such investments, as well as
other information about the Fund and its operations. Please
contact your financial intermediary or plan sponsor (or Janus if
you hold shares directly with Janus) to obtain these reports.
The Funds fiscal year ends June 30.
DISTRIBUTIONS
To avoid taxation of the Fund, the Internal Revenue Code
requires the Fund to distribute all or substantially all of its
net investment income and any net capital gains realized on its
investments at least annually. The Funds income from
certain dividends, interest, and any net realized short-term
capital gains are paid to shareholders as ordinary income
dividends. Certain dividend income may be reported to
shareholders as qualified dividend income, which is
generally subject to reduced rates of taxation. Net realized
long-term capital gains, if any, are paid to shareholders as
capital gains distributions, regardless of how long shares of
the Fund have been held. Distributions are made at the class
level, so they may vary from class to class within the Fund.
Distributions by the underlying funds and changes in asset
allocation may result in taxable distributions of ordinary
income or taxable gains.
Distribution
Schedule
Dividends from net investment income for the Fund are normally
declared and distributed in December. In addition, distributions
of capital gains are normally declared and distributed in
December. If necessary, dividends and net capital gains may be
distributed at other times as well.
How
Distributions Affect the Funds NAV
Distributions are paid to shareholders as of the record date of
a distribution of the Fund, regardless of how long the shares
have been held. Undistributed dividends and net capital gains
are included in the Funds daily NAV. The share price of
the Fund drops by the amount of the distribution, net of any
subsequent market fluctuations. For example, assume that on
December 31, the Fund declared a dividend in the amount of
$0.25 per share. If the Funds share price was $10.00 on
December 30, the Funds share price on December 31
would be $9.75, barring market fluctuations. You should be aware
that distributions from a taxable mutual fund do not increase
the value of your investment and may create income tax
obligations.
Buying
a Dividend
If you purchase shares of the Fund just before a distribution,
you will pay the full price for the shares and receive a portion
of the purchase price back as a taxable distribution. This is
referred to as buying a dividend. In the above
example, if you bought shares on December 30, you would
have paid $10.00 per share. On December 31, the Fund would
pay you $0.25 per share as a dividend and your shares would now
be worth $9.75 per share. Unless your account is set up as a
tax-deferred account, dividends paid to you would be included in
your gross income for tax purposes, even though you may not have
participated in the increase in NAV of the Fund, whether or not
you reinvested the dividends. You should consult with your
financial intermediary or tax adviser as to potential tax
consequences of any distributions that may be paid shortly after
purchase.
For your convenience, distributions of net investment income and
net capital gains are automatically reinvested in additional
shares of the Fund without any sales charge. To receive
distributions in cash, contact your financial intermediary or
Janus if you hold shares directly with Janus. Whether reinvested
or paid in cash, the distributions may be subject to taxes,
unless your shares are held in a qualified tax-deferred plan or
account.
TAXES
As with any investment, you should consider the tax consequences
of investing in the Fund. Any time you sell or exchange shares
of a fund in a taxable account, it is considered a taxable
event. For federal income tax purposes, an exchange is treated
the same as a sale. Depending on the purchase price and the sale
price, you may have a gain or loss on the transaction; whether
the gain or loss is long-term or short-term depends on how long
you owned the shares. Any tax liabilities generated by your
transactions are your responsibility.
C-14
The following discussion does not apply to qualified
tax-deferred accounts or other non-taxable entities, nor is it a
complete analysis of the federal income tax implications of
investing in the Fund. You should consult your tax adviser if
you have any questions. Additionally, state or local taxes may
apply to your investment, depending upon the laws of your state
of residence.
Taxes on
Distributions
Distributions by the Fund are subject to federal income tax,
regardless of whether the distribution is made in cash or
reinvested in additional shares of the Fund. When gains from the
sale of a security held by the Fund are paid to shareholders,
the rate at which the gain will be taxed to shareholders depends
on the length of time the Fund held the security. In certain
states, a portion of the distributions (depending on the sources
of the Funds income) may be exempt from state and local
taxes. The Funds net investment income and capital gains
are distributed to (and may be taxable to) those persons who are
shareholders of the Fund at the record date of such payments.
Although the Funds total net income and net realized gain
are the results of its operations, the per share amount
distributed or taxable to shareholders is affected by the number
of Fund shares outstanding at the record date. Generally,
account tax information will be made available to shareholders
on or before January 31st of each year. Information
regarding distributions may also be reported to the Internal
Revenue Service.
Distributions made by the Fund with respect to shares purchased
through a qualified retirement plan will generally be exempt
from current taxation if left to accumulate within the qualified
plan.
Generally, withdrawals from qualified plans may be subject to
federal income tax at ordinary income rates and, if made before
age 591/2,
a 10% penalty tax may be imposed. The federal income tax status
of your investment depends on the features of your qualified
plan. For further information, please contact your plan sponsor.
The Fund may be required to withhold U.S. federal income
tax on all distributions and redemptions payable to shareholders
who fail to provide their correct taxpayer identification
number, fail to make certain required certifications, or who
have been notified by the Internal Revenue Service that they are
subject to backup withholding. The current backup withholding
rate is applied.
When shareholders sell Fund shares from a taxable account, they
typically receive information on their tax forms that calculates
their gain or loss using the average cost method. Prior to
January 1, 2012, this information was not reported to the
IRS, and shareholders had the option of calculating gains or
losses using an alternative IRS permitted method. In accordance
with legislation passed by Congress in 2008, however, your
intermediary (or the Fund, if you hold shares directly with
Janus) began reporting cost basis information to the IRS for
shares purchased on or after January 1, 2012 and sold
thereafter. Your intermediary (or the Fund, if you hold shares
directly with Janus) will permit shareholders to elect their
preferred cost basis method. In the absence of an election, your
cost basis method will be your intermediarys default
method, unless you hold shares directly with Janus in which case
the Fund will use an average cost basis method. Please consult
your tax adviser to determine the appropriate cost basis method
for your particular tax situation and to learn more about how
the new cost basis reporting laws apply to you and your
investments.
Taxation
of the Fund
Dividends, interest, and some capital gains received by the Fund
on foreign securities may be subject to foreign tax withholding
or other foreign taxes. If the Fund is eligible, it may from
year to year make the election permitted under Section 853
of the Internal Revenue Code to pass through such taxes to
shareholders as a foreign tax credit. If such an election is not
made, any foreign taxes paid or accrued will represent an
expense to the Fund.
Certain fund transactions may involve short sales, futures,
options, swap agreements, hedged investments, and other similar
transactions, and may be subject to special provisions of the
Internal Revenue Code that, among other things, can potentially
affect the character, amount, timing of distributions to
shareholders, and utilization of capital loss carryforwards. The
Fund will monitor its transactions and may make certain tax
elections and use certain investment strategies where applicable
in order to mitigate the effect of these tax provisions, if
possible. Certain transactions or strategies utilized by the
Fund may generate nonqualified income that can impact an
investors taxes.
The Fund does not expect to pay any federal income or excise
taxes because it intends to meet certain requirements of the
Internal Revenue Code, including the distribution each year of
all its net investment income and net capital gains. It is
important that the Fund meets these requirements so that any
earnings on your investment will not be subject to federal
income taxes twice. Funds that invest in partnerships may be
subject to state tax liabilities.
C-15
FINANCIAL
HIGHLIGHTS
The financial highlights tables are intended to help you
understand the Funds financial performance for each fiscal
period shown. Items Net asset value, beginning of
period through Net asset value, end of period
reflect financial results for a single Fund Share. The
gross expense ratio reflects expenses prior to any expense
offset arrangement and the net expense ratio reflects expenses
after any expense offset arrangement. Both expense ratios
reflect expenses after waivers (reimbursements), if applicable.
The information for the fiscal periods shown has been audited by
[To be updated by Amendment], whose report, along with the
Funds financial statements, is included in the Annual
Report, which is available upon request, and incorporated by
reference into the Funds SAI.
The total returns in the tables represent the rate that an
investor would have earned (or lost) on an investment in the
shares of the Fund (assuming reinvestment of all dividends and
distributions).
Class D Shares of the Fund commenced operations on
February 16, 2010, after the restructuring of the
Funds Class J Shares, the predecessor share class.
The financial highlights shown for periods prior to
February 16, 2010 reflect financial results for the
Class J Shares of the Fund. If Class D Shares had been
available, the financial results shown may have been different.
Effective February 16, 2010, Class J Shares were
renamed Class T Shares and the eligibility requirements
changed so that only clients investing through a third-party
intermediary may purchase Class T Shares.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Janus Moderate Allocation
Fund Class A
|
|
|
|
|
|
|
|
|
|
Period ended
|
|
|
Years or Period ended June 30
|
|
|
October 31
|
|
|
2012
|
|
2011
|
|
2010(1)
|
|
|
2009(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
|
$12.57
|
|
|
|
$10.95
|
|
|
|
$10.80
|
|
|
|
|
$9.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income/(loss)
|
|
|
0.24
|
|
|
|
0.34
|
|
|
|
0.18
|
|
|
|
|
0.02
|
|
Net gain/(loss) on investments (both realized and unrealized)
|
|
|
(0.31)
|
|
|
|
1.58
|
|
|
|
0.24
|
|
|
|
|
1.10
|
|
Total from investment operations
|
|
|
(0.07)
|
|
|
|
1.92
|
|
|
|
0.42
|
|
|
|
|
1.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.29)
|
|
|
|
(0.30)
|
|
|
|
(0.27)
|
|
|
|
|
|
|
Distributions from capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions
|
|
|
(0.29)
|
|
|
|
(0.30)
|
|
|
|
(0.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
|
$12.21
|
|
|
|
$12.57
|
|
|
|
$10.95
|
|
|
|
|
$10.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return(3)
|
|
|
(0.41)%
|
|
|
|
17.59%
|
|
|
|
3.81%
|
|
|
|
|
11.57%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands)
|
|
|
$5,720
|
|
|
|
$5,498
|
|
|
|
$1,844
|
|
|
|
|
$1,145
|
|
Average net assets for the period (in thousands)
|
|
|
$5,484
|
|
|
|
$3,818
|
|
|
|
$1,676
|
|
|
|
|
$424
|
|
Ratio of gross expenses to average net
assets(4)(5)
|
|
|
0.42%
|
|
|
|
0.50%
|
|
|
|
0.40%
|
|
|
|
|
0.48%
|
|
Ratio of net expenses to average net
assets(4)(5)
|
|
|
0.42%
|
|
|
|
0.50%
|
|
|
|
0.40%
|
|
|
|
|
0.44%
|
|
Ratio of net investment income/(loss) to average net
assets(4)
|
|
|
1.98%
|
|
|
|
2.88%
|
|
|
|
1.82%
|
|
|
|
|
1.43%
|
|
Portfolio turnover rate
|
|
|
18%
|
|
|
|
15%
|
|
|
|
11%
|
(3)
|
|
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Period November 1, 2009 through June 30, 2010. The Fund changed
its fiscal year end to June 30.
|
(2)
|
Period July 6, 2009 (commencement of Class A Shares)
through October 31, 2009.
|
(3)
|
Not annualized for periods of less than one full year.
|
(4)
|
Annualized for periods of less than one full year.
|
(5)
|
Ratios do not include expenses of the underlying funds and/or
investment companies in which the Fund invests.
|
C-16
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Janus Moderate Allocation
Fund Class C
|
|
|
|
|
|
|
|
|
|
Period ended
|
|
|
Years or Period ended June 30
|
|
|
October 31
|
|
|
2012
|
|
2011
|
|
2010(1)
|
|
|
2009(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
|
$12.46
|
|
|
|
$10.88
|
|
|
|
$10.77
|
|
|
|
|
$9.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income/(loss)
|
|
|
0.15
|
|
|
|
0.26
|
|
|
|
0.21
|
|
|
|
|
0.01
|
|
Net gain/(loss) on investments (both realized and unrealized)
|
|
|
(0.32)
|
|
|
|
1.57
|
|
|
|
0.15
|
|
|
|
|
1.08
|
|
Total from investment operations
|
|
|
(0.17)
|
|
|
|
1.83
|
|
|
|
0.36
|
|
|
|
|
1.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.27)
|
|
|
|
(0.25)
|
|
|
|
(0.25)
|
|
|
|
|
|
|
Distributions from capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions
|
|
|
(0.27)
|
|
|
|
(0.25)
|
|
|
|
(0.25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
|
$12.02
|
|
|
|
$12.46
|
|
|
|
$10.88
|
|
|
|
|
$10.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return(3)
|
|
|
(1.27)%
|
|
|
|
16.86%
|
|
|
|
3.33%
|
|
|
|
|
11.26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands)
|
|
|
$8,397
|
|
|
|
$7,572
|
|
|
|
$2,509
|
|
|
|
|
$406
|
|
Average net assets for the period (in thousands)
|
|
|
$7,945
|
|
|
|
$5,021
|
|
|
|
$1,469
|
|
|
|
|
$113
|
|
Ratio of gross expenses to average net
assets(4)(5)
|
|
|
1.26%
|
|
|
|
1.16%
|
|
|
|
1.16%
|
|
|
|
|
1.26%
|
|
Ratio of net expenses to average net
assets(4)(5)
|
|
|
1.26%
|
|
|
|
1.16%
|
|
|
|
1.16%
|
|
|
|
|
1.20%
|
|
Ratio of net investment income/(loss) to average net
assets(4)
|
|
|
1.10%
|
|
|
|
1.85%
|
|
|
|
0.87%
|
|
|
|
|
0.71%
|
|
Portfolio turnover rate
|
|
|
18%
|
|
|
|
15%
|
|
|
|
11%
|
(3)
|
|
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Period November 1, 2009 through June 30, 2010. The Fund changed
its fiscal year end to June 30.
|
(2)
|
Period July 6, 2009 (commencement of Class A Shares)
through October 31, 2009.
|
(3)
|
Not annualized for periods of less than one full year.
|
(4)
|
Annualized for periods of less than one full year.
|
(5)
|
Ratios do not include expenses of the underlying funds and/or
investment companies in which the Fund invests.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Janus Moderate Allocation
Fund Class D
|
|
|
Years or Period ended June 30
|
|
|
Years ended October 31
|
|
|
2012
|
|
2011
|
|
2010(1)
|
|
|
2009
|
|
2008
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
|
$12.62
|
|
|
|
$10.96
|
|
|
|
$10.98
|
|
|
|
|
$9.05
|
|
|
|
$12.95
|
|
|
|
$11.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income/(loss)
|
|
|
0.26
|
|
|
|
0.34
|
|
|
|
0.06
|
|
|
|
|
0.32
|
|
|
|
0.31
|
|
|
|
0.23
|
|
Net gain/(loss) on investments (both realized and unrealized)
|
|
|
(0.31)
|
|
|
|
1.62
|
|
|
|
(0.08)
|
|
|
|
|
1.71
|
|
|
|
(3.64)
|
|
|
|
1.86
|
|
Total from investment operations
|
|
|
(0.05)
|
|
|
|
1.96
|
|
|
|
(0.02)
|
|
|
|
|
2.03
|
|
|
|
(3.33)
|
|
|
|
2.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.30)
|
|
|
|
(0.30)
|
|
|
|
|
|
|
|
|
(0.29)
|
|
|
|
(0.29)
|
|
|
|
(0.16)
|
|
Distributions from capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.28)
|
|
|
|
(0.02)
|
|
Total distributions
|
|
|
(0.30)
|
|
|
|
(0.30)
|
|
|
|
|
|
|
|
|
(0.29)
|
|
|
|
(0.57)
|
|
|
|
(0.18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
|
$12.27
|
|
|
|
$12.62
|
|
|
|
$10.96
|
|
|
|
|
$10.79
|
|
|
|
$9.05
|
|
|
|
$12.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return(2)
|
|
|
(0.27)%
|
|
|
|
18.00%
|
|
|
|
(0.18)%
|
|
|
|
|
23.19%
|
|
|
|
(26.77)%
|
|
|
|
19.16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands)
|
|
|
$228,415
|
|
|
|
$238,030
|
|
|
|
$180,264
|
|
|
|
|
$160,742
|
|
|
|
$110,756
|
|
|
|
$123,007
|
|
Average net assets for the period (in thousands)
|
|
|
$224,382
|
|
|
|
$216,280
|
|
|
|
$184,405
|
|
|
|
|
$124,910
|
|
|
|
$132,650
|
|
|
|
$87,462
|
|
Ratio of gross expenses to average net
assets(3)(4)
|
|
|
0.26%
|
|
|
|
0.25%
|
|
|
|
0.27%
|
|
|
|
|
0.33%
|
|
|
|
0.24%
|
|
|
|
0.27%
|
|
Ratio of net expenses to average net
assets(3)(4)
|
|
|
0.26%
|
|
|
|
0.25%
|
|
|
|
0.27%
|
|
|
|
|
0.32%
|
|
|
|
0.20%
|
|
|
|
0.20%
|
|
Ratio of net investment income/(loss) to average net
assets(3)
|
|
|
2.10%
|
|
|
|
2.83%
|
|
|
|
1.43%
|
|
|
|
|
3.48%
|
|
|
|
2.63%
|
|
|
|
2.24%
|
|
Portfolio turnover rate
|
|
|
18%
|
|
|
|
15%
|
|
|
|
11%
|
(2)
|
|
|
|
19%
|
|
|
|
71%
|
|
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial highlights shown reflect financial results for
Class J Shares, the predecessor share class, and are
provided as supplemental information.
|
(1)
|
Period February 16, 2010 (commencement of Class D
Shares) through June 30, 2010. The Fund changed its fiscal
year end to June 30.
|
(2)
|
Not annualized for periods of less than one full year.
|
(3)
|
Annualized for periods of less than one full year.
|
(4)
|
Ratios do not include expenses of the underlying funds and/or
investment companies in which the Fund invests.
|
C-17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Janus Moderate Allocation
Fund Class S
|
|
|
|
|
|
|
|
|
|
Period ended
|
|
|
Years or Period ended June 30
|
|
|
October 31
|
|
|
2012
|
|
2011
|
|
2010(1)
|
|
|
2009(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
|
$12.52
|
|
|
|
$10.91
|
|
|
|
$10.78
|
|
|
|
|
$9.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income/(loss)
|
|
|
0.24
|
|
|
|
0.29
|
|
|
|
0.25
|
|
|
|
|
0.01
|
|
Net gain/(loss) on investments (both realized and unrealized)
|
|
|
(0.34)
|
|
|
|
1.62
|
|
|
|
0.14
|
|
|
|
|
1.09
|
|
Total from investment operations
|
|
|
(0.10)
|
|
|
|
1.91
|
|
|
|
0.39
|
|
|
|
|
1.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.28)
|
|
|
|
(0.30)
|
|
|
|
(0.26)
|
|
|
|
|
|
|
Distributions from capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions
|
|
|
(0.28)
|
|
|
|
(0.30)
|
|
|
|
(0.26)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
|
$12.14
|
|
|
|
$12.52
|
|
|
|
$10.91
|
|
|
|
|
$10.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return(3)
|
|
|
(0.64)%
|
|
|
|
17.56%
|
|
|
|
3.57%
|
|
|
|
|
11.36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands)
|
|
|
$1,595
|
|
|
|
$416
|
|
|
|
$58
|
|
|
|
|
$11
|
|
Average net assets for the period (in thousands)
|
|
|
$1,042
|
|
|
|
$374
|
|
|
|
$26
|
|
|
|
|
$1
|
|
Ratio of gross expenses to average net
assets(4)(5)
|
|
|
0.60%
|
|
|
|
0.64%
|
|
|
|
0.66%
|
|
|
|
|
0.92%
|
|
Ratio of net expenses to average net
assets(4)(5)
|
|
|
0.60%
|
|
|
|
0.64%
|
|
|
|
0.66%
|
|
|
|
|
0.77%
|
|
Ratio of net investment income/(loss) to average net
assets(4)
|
|
|
1.88%
|
|
|
|
2.92%
|
|
|
|
1.35%
|
|
|
|
|
1.59%
|
|
Portfolio turnover rate
|
|
|
18%
|
|
|
|
15%
|
|
|
|
11%
|
(3)
|
|
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Period November 1, 2009 through June 30, 2010. The Fund changed
its fiscal year end to June 30.
|
(2)
|
Period July 6, 2009 (commencement of Class S Shares) through
October 31, 2009.
|
(3)
|
Not annualized for periods of less than one full year.
|
(4)
|
Annualized for periods of less than one full year.
|
(5)
|
Ratios do not include expenses of the underlying funds and/or
investment companies in which the Fund invests.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Janus Moderate Allocation
Fund Class I
|
|
|
|
|
|
|
|
|
|
Period ended
|
|
|
Years or Period ended June 30
|
|
|
October 31
|
|
|
2012
|
|
2011
|
|
2010(1)
|
|
|
2009(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
|
$12.60
|
|
|
|
$10.96
|
|
|
|
$10.80
|
|
|
|
|
$9.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income/(loss)
|
|
|
0.26
|
|
|
|
0.34
|
|
|
|
0.26
|
|
|
|
|
0.05
|
|
Net gain/(loss) on investments (both realized and unrealized)
|
|
|
(0.29)
|
|
|
|
1.61
|
|
|
|
0.17
|
|
|
|
|
1.07
|
|
Total from investment operations
|
|
|
(0.03)
|
|
|
|
1.95
|
|
|
|
0.43
|
|
|
|
|
1.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.30)
|
|
|
|
(0.31)
|
|
|
|
(0.27)
|
|
|
|
|
|
|
Distributions from capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions
|
|
|
(0.30)
|
|
|
|
(0.31)
|
|
|
|
(0.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
|
$12.27
|
|
|
|
$12.60
|
|
|
|
$10.96
|
|
|
|
|
$10.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return(3)
|
|
|
(0.12)%
|
|
|
|
17.91%
|
|
|
|
3.96%
|
|
|
|
|
11.57%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands)
|
|
|
$5,640
|
|
|
|
$4,510
|
|
|
|
$1,625
|
|
|
|
|
$36
|
|
Average net assets for the period (in thousands)
|
|
|
$5,003
|
|
|
|
$3,130
|
|
|
|
$757
|
|
|
|
|
$29
|
|
Ratio of gross expenses to average net
assets(4)(5)
|
|
|
0.17%
|
|
|
|
0.17%
|
|
|
|
0.16%
|
|
|
|
|
0.19%
|
|
Ratio of net expenses to average net
assets(4)(5)
|
|
|
0.17%
|
|
|
|
0.17%
|
|
|
|
0.16%
|
|
|
|
|
0.18%
|
|
Ratio of net investment income/(loss) to average net
assets(4)
|
|
|
2.18%
|
|
|
|
2.56%
|
|
|
|
1.70%
|
|
|
|
|
1.72%
|
|
Portfolio turnover rate
|
|
|
18%
|
|
|
|
15%
|
|
|
|
11%
|
(3)
|
|
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Period November 1, 2009 through June 30, 2010. The Fund changed
its fiscal year end to June 30.
|
(2)
|
Period July 6, 2009 (commencement of Class I Shares) through
October 31, 2009.
|
(3)
|
Not annualized for periods of less than one full year.
|
(4)
|
Annualized for periods of less than one full year.
|
(5)
|
Ratios do not include expenses of the underlying funds and/or
investment companies in which the Fund invests.
|
C-18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Janus Moderate Allocation
Fund Class T
|
|
|
Years or Period ended June 30
|
|
|
Years ended October 31
|
|
|
2012
|
|
2011
|
|
2010(1)
|
|
|
2009
|
|
2008
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
|
$12.60
|
|
|
|
$10.95
|
|
|
|
$10.79
|
|
|
|
|
$9.05
|
|
|
|
$12.95
|
|
|
|
$11.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income/(loss)
|
|
|
0.32
|
|
|
|
0.11
|
|
|
|
0.56
|
|
|
|
|
0.32
|
|
|
|
0.31
|
|
|
|
0.23
|
|
Net gain/(loss) on investments (both realized and unrealized)
|
|
|
(0.38)
|
|
|
|
1.84
|
|
|
|
(0.14)
|
|
|
|
|
1.71
|
|
|
|
(3.64)
|
|
|
|
1.86
|
|
Total from investment operations
|
|
|
(0.06)
|
|
|
|
1.95
|
|
|
|
0.42
|
|
|
|
|
2.03
|
|
|
|
(3.33)
|
|
|
|
2.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less distributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.29)
|
|
|
|
(0.30)
|
|
|
|
(0.26)
|
|
|
|
|
(0.29)
|
|
|
|
(0.29)
|
|
|
|
(0.16)
|
|
Distributions from capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.28)
|
|
|
|
(0.02)
|
|
Total distributions
|
|
|
(0.29)
|
|
|
|
(0.30)
|
|
|
|
(0.26)
|
|
|
|
|
(0.29)
|
|
|
|
(0.57)
|
|
|
|
(0.18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
|
$12.25
|
|
|
|
$12.60
|
|
|
|
$10.95
|
|
|
|
|
$10.79
|
|
|
|
$9.05
|
|
|
|
$12.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return(2)
|
|
|
(0.33)%
|
|
|
|
17.89%
|
|
|
|
3.80%
|
|
|
|
|
23.19%
|
|
|
|
(26.77)%
|
|
|
|
19.16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands)
|
|
|
$15,651
|
|
|
|
$20,254
|
|
|
|
$10,268
|
|
|
|
|
$160,742
|
|
|
|
$110,756
|
|
|
|
$123,007
|
|
Average net assets for the period (in thousands)
|
|
|
$19,099
|
|
|
|
$16,051
|
|
|
|
$83,813
|
|
|
|
|
$124,910
|
|
|
|
$132,650
|
|
|
|
$87,462
|
|
Ratio of gross expenses to average net
assets(3)(4)
|
|
|
0.36%
|
|
|
|
0.35%
|
|
|
|
0.30%
|
|
|
|
|
0.33%
|
|
|
|
0.24%
|
|
|
|
0.27%
|
|
Ratio of net expenses to average net
assets(3)(4)
|
|
|
0.31%
|
|
|
|
0.35%
|
|
|
|
0.30%
|
|
|
|
|
0.32%
|
|
|
|
0.20%
|
|
|
|
0.20%
|
|
Ratio of net investment income/(loss) to average net
assets(3)
|
|
|
2.12%
|
|
|
|
2.88%
|
|
|
|
2.63%
|
|
|
|
|
3.48%
|
|
|
|
2.63%
|
|
|
|
2.24%
|
|
Portfolio turnover rate
|
|
|
18%
|
|
|
|
15%
|
|
|
|
11%
|
(2)
|
|
|
|
19%
|
|
|
|
71%
|
|
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Formerly named Class J Shares.
|
(1)
|
Period July 6, 2009 (commencement of Class I Shares) through
October 31, 2009.
|
(2)
|
Not annualized for periods of less than one full year.
|
(3)
|
Annualized for periods of less than one full year.
|
(4)
|
Ratios do not include expenses of the underlying funds and/or
investment companies in which the Fund invests.
|
C-19
APPENDIX D
INVESTMENT
OBJECTIVES AND STRATEGIES OF THE UNDERLYING FUNDS
The following information provides a brief description of the
investment objectives and strategies of each of the underlying
funds that are available within the various asset classes and
asset categories. Additional details are available in the
underlying funds prospectuses. The Trustees of the
underlying Janus funds may change the investment objectives or
strategies of the underlying funds at any time without prior
notice to Fund shareholders. The Funds may allocate assets to
all or some of these underlying funds when rebalancing the
Funds investments. At the discretion of Janus Capital and
without shareholder notice, the Funds may invest in additional
Janus funds established in the future.
Potential Underlying Funds Included in the Equity Securities
Asset Category
INTECH Global Dividend Fund seeks long-term growth of
capital and income. The fund invests, under normal
circumstances, at least 80% of its net assets in dividend-paying
securities. The fund invests primarily in common stocks from the
universe of the Morgan Stanley Capital International
(MSCI) World High Dividend Yield Index, utilizing
INTECHs mathematical investment process. The MSCI World
High Dividend Yield Index is designed to reflect the performance
of the high dividend yield securities contained within the
broader MSCI World
IndexSM.
The fund may also invest in foreign equity and debt securities.
INTECH International Fund seeks long-term growth of
capital. The fund invests primarily in common stocks from the
universe of the MSCI
EAFE®
Index, utilizing INTECHs mathematical investment process.
The MSCI
EAFE®
Index is an MSCI index that is designed to measure the
performance of the developed markets of Europe, Australasia, and
the Far East. The fund may also invest in foreign equity and
debt securities.
INTECH U.S. Core Fund seeks long-term growth of
capital. The fund invests, under normal circumstances, at least
80% of its net assets in U.S. common stocks from the
universe of the S&P
500®
Index, utilizing INTECHs mathematical investment process.
The S&P
500®
Index is an unmanaged index of 500 stocks that is generally
representative of the performance of larger companies in the
United States.
INTECH U.S. Growth Fund seeks long-term growth of
capital. The fund invests, under normal circumstances, at least
80% of its net assets in U.S. common stocks from the
universe of the Russell
1000®
Growth Index, utilizing INTECHs mathematical investment
process. The Russell
1000®
Growth Index is an unmanaged index that measures the performance
of those Russell 1000 companies with higher price-to-book
ratios and higher forecasted growth values.
INTECH U.S. Value Fund seeks long-term growth of
capital. The fund invests, under normal circumstances, at least
80% of its net assets in U.S. common stocks from the
universe of the Russell
1000®
Value Index, utilizing INTECHs mathematical investment
process. The Russell
1000®
Value Index is an unmanaged index that measures the performance
of those Russell 1000 companies with lower price-to-book
ratios and lower forecasted growth values.
Janus Asia Equity Fund seeks long-term growth of capital.
The fund pursues its investment objective by investing, under
normal circumstances, at least 80% of its net assets in equity
securities of Asian issuers (excluding Japanese issuers). An
Asian issuer is generally considered to be any company that
(i) is incorporated or has its principal business
activities in an Asian country; (ii) is primarily listed on
the trading market of an Asian country; or (iii) derives
50% or more of its revenue from, or has 50% or more of its
assets in, one or more Asian countries. The fund considers
Asian countries to include, but not be limited to,
Hong Kong, China, South Korea, Taiwan, Singapore, Malaysia,
Thailand, Indonesia, Philippines, India, Vietnam, Pakistan,
Russia, and Sri Lanka. Some of these countries may represent
developing or emerging markets. The fund generally invests in
equity securities, which consist primarily of common stocks,
preferred stocks, depositary receipts, and convertible
securities, but may also include other types of instruments,
such as equity-linked securities and real estate investment
trusts issued by Asian real estate companies. The fund may
invest in companies of any market capitalization. While the fund
intends to diversify its investments across a number of
different countries, including emerging market countries, it
may, under unusual circumstances, invest all or a significant
portion of its assets in a single Asian country. To a more
limited degree, the fund may also invest in U.S. and
foreign debt securities.
Janus Balanced Fund seeks long-term capital growth,
consistent with preservation of capital and balanced by current
income. The fund pursues its investment objective by normally
investing
35-65% of
its assets in equity securities and the remaining assets in
fixed-income securities and cash equivalents. The fund normally
invests at least 25% of its assets in fixed-income senior
securities. Fixed-income securities may include corporate debt
securities, U.S. Government obligations, mortgage-backed
securities and other mortgage-related products, and short-term
investments. The fund may also invest in foreign equity and debt
securities, which may include investments in emerging markets.
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Janus Contrarian Fund seeks long-term growth of capital.
The fund pursues its investment objective by investing, under
normal circumstances, at least 80% of its net assets in equity
securities with the potential for long-term growth of capital.
The portfolio manager emphasizes investments in companies with
attractive price/free cash flow, which is the relationship
between the price of a stock and the companys available
cash from operations, minus capital expenditures. The portfolio
manager will typically seek attractively valued companies that
are improving their free cash flow and returns on invested
capital. Such companies may also include special situations
companies that are experiencing management changes
and/or are
currently out of favor. The fund may also invest in foreign
equity and debt securities, which may include investments in
emerging markets.
Janus Emerging Markets Fund seeks long-term growth of
capital. The fund invests, under normal circumstances, at least
80% of its net assets in securities of issuers in emerging
market countries. The fund normally invests in securities of
issuers that (i) are primarily listed on the trading market
of an emerging market country; (ii) are incorporated or
have their principal business activities in an emerging market
country; or (iii) derive 50% or more of their revenues
from, or have 50% or more of their assets in, an emerging market
country. An emerging market country is any country that has been
determined by an international organization, such as the World
Bank, to have a low to middle income economy
and/or any
country that is not included in the MSCI World
IndexSM,
which measures the equity market performance of developed
markets. The fund generally invests in equity securities, which
consist primarily of common stocks, preferred stocks and
convertible securities, but may also invest in other types of
instruments, such as equity-linked securities and
exchange-traded funds. The fund may invest in companies of any
market capitalization.
Janus Enterprise Fund seeks long-term growth of capital.
The fund pursues its investment objective by investing primarily
in common stocks selected for their growth potential, and
normally invests at least 50% of its equity assets in
medium-sized companies. Medium-sized companies are those whose
market capitalization falls within the range of companies in the
Russell
Midcap®
Growth Index. The market capitalizations within the index will
vary, but as of June 30, 2012, they ranged from
approximately $1.3 billion to $19.1 billion. The fund
may also invest in foreign equity and debt securities, which may
include investments in emerging markets.
Janus Forty Fund seeks long-term growth of capital. The
fund pursues its investment objective by normally investing
primarily in a core group of
20-40 common
stocks selected for their growth potential. The fund may invest
in companies of any size, from larger, well-established
companies to smaller, emerging growth companies. The fund may
also invest in foreign equity and debt securities, which may
include investments in emerging markets.
Janus Fund seeks long-term growth of capital. The fund
pursues its investment objective by investing primarily in
common stocks selected for their growth potential. Although the
fund may invest in companies of any size, it generally invests
in larger, more established companies. As of June 30, 2012,
the funds weighted average market capitalization was
$86.7 billion. The fund may also invest in foreign equity
and debt securities, which may include investments in emerging
markets.
Janus Global Life Sciences Fund seeks long-term growth of
capital. The fund invests, under normal circumstances, at least
80% of its net assets in securities of companies that the
portfolio manager believes have a life science orientation.
Generally speaking, the life sciences relate to
maintaining or improving quality of life. The fund implements
this policy by investing primarily in equity securities of
U.S. and foreign companies selected for their growth
potential. The fund normally invests in issuers from several
different countries, which may include the United States. The
fund may, under unusual circumstances, invest in a single
country. The fund may have significant exposure to emerging
markets. The fund may also invest in U.S. and foreign debt
securities. As a fundamental policy, the fund normally invests
at least 25% of its total assets in the life
sciences sector, which may include companies in the
following industry groups: health care; pharmaceuticals;
agriculture; cosmetics/personal care; and biotechnology.
Janus Global Research Fund seeks long-term growth of
capital. The fund pursues its investment objective by investing
primarily in common stocks selected for their growth potential.
The fund may invest in companies of any size located anywhere in
the world, from larger, well-established companies to smaller,
emerging growth companies. The fund normally invests at least
40% of its net assets in securities of issuers or companies from
different countries located throughout the world, excluding the
United States. The fund may have significant exposure to
emerging markets. The fund may also invest in foreign equity and
debt securities.
Janus Global Select Fund seeks long-term growth of
capital. The fund pursues its investment objective by normally
investing primarily in a core group of
30-50
domestic and foreign common stocks selected for their growth
potential and normally investing at least 40% of its net assets
in securities of issuers from different countries located
throughout the world, excluding the United States. The fund may
invest in companies of any size located anywhere in the world,
from larger, well-established companies to smaller, emerging
growth companies. The fund may also invest in U.S. and
foreign debt securities. The fund may have significant
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exposure to emerging markets. As of June 30, 2012, the fund
held stocks of 53 companies. Of these holdings, 30
comprised approximately 75.08% of the funds holdings.
Janus Global Technology Fund seeks long-term growth of
capital. The fund invests, under normal circumstances, at least
80% of its net assets in securities of companies that the
portfolio manager believes will benefit significantly from
advances or improvements in technology. These companies
generally fall into two categories: (i) companies that the
portfolio manager believes have or will develop products,
processes, or services that will provide significant
technological advancements or improvements and
(ii) companies that the portfolio manager believes rely
extensively on technology in connection with their operations or
services. The fund implements this policy by investing primarily
in equity securities of U.S. and foreign companies selected
for their growth potential. The fund normally invests in issuers
from several different countries, which may include the United
States. The fund may, under unusual circumstances, invest in a
single country. The fund may have significant exposure to
emerging markets. The fund may also invest in U.S. and
foreign debt securities.
Janus Growth and Income Fund seeks long-term capital
growth and current income. The fund pursues its investment
objective by normally emphasizing investments in common stocks.
The fund will normally invest up to 75% of its assets in equity
securities selected primarily for their growth potential and at
least 25% of its assets in securities the portfolio manager
believes have income potential. Eligible equity securities in
which the fund may invest include: (i) domestic and foreign
common stocks; (ii) preferred stocks; (iii) securities
convertible into common stocks or preferred stocks, such as
convertible preferred stocks, bonds, and debentures; and
(iv) other securities with equity characteristics.
Janus International Equity Fund seeks long-term growth of
capital. The fund invests, under normal circumstances, at least
80% of its net assets in equity securities. The fund normally
invests in a core group of
60-100
equity securities of issuers from different countries located
throughout the world, excluding the United States. The fund may,
under unusual circumstances, invest all of its assets in a
single country. The fund may invest in emerging markets but will
normally limit such investments to 20% of its net assets,
measured at the time of purchase. The fund may also invest in
foreign debt securities.
Janus Overseas Fund seeks long-term growth of capital.
The fund invests, under normal circumstances, at least 80% of
its net assets in securities of issuers from countries outside
of the United States. The fund normally invests in securities of
issuers from several different countries, excluding the United
States. Although the fund typically invests 80% or more of its
assets in issuers located outside the United States, it also may
normally invest up to 20% of its assets, measured at the time of
purchase, in U.S. issuers, and it may, under unusual
circumstances, invest all or substantially all of its assets in
a single country. The fund may have significant exposure to
emerging markets. The fund may also invest in U.S. and
foreign debt securities.
Janus Research Fund seeks long-term growth of capital.
The fund pursues its investment objective by investing primarily
in common stocks selected for their growth potential. The fund
may invest in companies of any size, from larger,
well-established companies to smaller, emerging growth
companies. The fund may also invest in foreign equity and debt
securities, which may include investments in emerging markets.
Janus Triton Fund seeks long-term growth of capital. The
fund pursues its investment objective by investing primarily in
common stocks selected for their growth potential. In pursuing
that objective, the fund invests in equity securities of
small-and medium-sized companies. Generally, small-and
medium-sized companies have a market capitalization of less than
$10 billion.
Janus Twenty Fund seeks long-term growth of capital. The
fund pursues its investment objective by normally investing
primarily in a core group of
20-30 common
stocks selected for their growth potential. The fund may also
invest in foreign equity and debt securities, which may include
investments in emerging markets.
Janus Venture Fund seeks capital appreciation. The fund
pursues its investment objective by investing at least 50% of
its equity assets in small-sized companies. The fund may also
invest in larger companies with strong growth potential or
relatively well-known and large companies with potential for
capital appreciation. Small-sized companies are defined by the
portfolio managers as those companies whose market
capitalization falls within the range of companies in the
Russell
2000®
Growth Index. The market capitalizations within the index will
vary, but as of June 30, 2012, they ranged from
approximately $53 million to $3.8 billion. Companies
whose capitalization or revenues fall outside these ranges after
the funds initial purchase continue to be considered
small-sized.
Janus Worldwide Fund seeks long-term growth of capital.
The fund pursues its investment objective by investing primarily
in equity securities, which include, but are not limited to,
common stocks, preferred stocks, and depositary receipts of
companies of any size located throughout the world. The fund
normally invests in issuers from several different countries,
including the United
D-3
States. The fund may, under unusual circumstances, invest in a
single country. The fund may have significant exposure to
emerging markets. The fund may also invest in foreign equity and
debt securities.
Perkins Global Value Fund seeks capital appreciation. The
fund pursues its investment objective by investing primarily in
common stocks of companies of any size located throughout the
world, including emerging markets. The fund normally invests in
issuers from several different countries, which may include the
United States. The fund may, under unusual circumstances, invest
in a single country. The fund may have significant exposure to
emerging markets. The fund may also invest in U.S. and
foreign equity and debt securities.
Perkins Large Cap Value Fund seeks capital appreciation.
The fund pursues its investment objective by investing primarily
in common stocks selected for their capital appreciation
potential. The fund primarily invests in the common stocks of
large-sized companies whose stock prices the portfolio managers
believe to be undervalued. The fund invests, under normal
circumstances, at least 80% of its net assets in equity
securities of companies having, at the time of purchase, market
capitalizations equal to or greater than the median market
capitalization of companies included in the Russell
1000®
Value Index. The market capitalizations within the index will
vary, but as of June 30, 2012, they ranged from
approximately $1.3 billion to $400.1 billion, and the
median market capitalization was $4.7 billion. The fund may
also invest in foreign equity and debt securities, which may
include investments in emerging markets. The fund may invest,
under normal circumstances, up to 20% of its net assets in
securities of companies having market capitalizations outside of
the aforementioned market capitalization ranges or in cash or
cash equivalents. In addition, when the portfolio managers
believe that market conditions are unfavorable for investing, or
when they are otherwise unable to locate attractive investment
opportunities, the Fund may invest up to 20% of its net assets
in exchange-traded funds (ETFs), including
commodity-related ETFs, cash or similar investments.
Perkins Mid Cap Value Fund seeks capital appreciation.
The fund pursues its investment objective by investing primarily
in common stocks selected for their capital appreciation
potential. The fund primarily invests in the common stocks of
mid-sized companies whose stock prices the portfolio managers
believe to be undervalued. The fund invests, under normal
circumstances, at least 80% of its net assets in equity
securities of companies whose market capitalization falls, at
the time of purchase, within the
12-month
average of the capitalization range of the Russell
Midcap®
Value Index. This average is updated monthly. The market
capitalizations within the index will vary, but as of
June 30, 2012, they ranged from approximately
$1.3 billion to $18.5 billion. The fund may also
invest in foreign equity and debt securities, which may include
investments in emerging markets. The fund may invest, under
normal circumstances, up to 20% of its net assets in securities
of companies having market capitalizations outside of the
aforementioned market capitalization ranges. In addition, when
the portfolio managers believe that market conditions are
unfavorable for investing, or when they are otherwise unable to
locate attractive investment opportunities, the Fund may invest
up to 20% of its net assets in cash or similar investments.
Perkins Select Value Fund seeks capital appreciation. The
fund pursues its investment objective by investing primarily in
common stocks selected for their capital appreciation potential.
The fund primarily invests in the common stocks of companies of
any size whose stock prices the portfolio managers believe to be
undervalued. The fund may also invest in foreign equity and debt
securities, which may include investments in emerging markets.
In addition, when the portfolio managers believe that market
conditions are unfavorable for investing, or when they are
otherwise unable to locate attractive investment opportunities,
the funds cash or similar investments may increase.
Perkins Small Cap Value Fund seeks capital appreciation.
The fund pursues its investment objective by investing primarily
in the common stocks of small companies whose stock prices are
believed to be undervalued by the funds portfolio
managers. The fund invests, under normal circumstances, at least
80% of its net assets in equity securities of small companies
whose market capitalization, at the time of initial purchase, is
less than the
12-month
average of the maximum market capitalization for companies
included in the Russell
2000®
Value Index. This average is updated monthly. The market
capitalizations within the index will vary, but as of
June 30, 2012, they ranged from approximately
$85 million to $2.7 billion. The fund may also invest
in foreign equity and debt securities, which may include
investments in emerging markets. The fund may invest, under
normal circumstances, up to 20% of its net assets in securities
of companies having market capitalizations outside of the
aforementioned market capitalization ranges. In addition, when
the portfolio managers believe that market conditions are
unfavorable for investing, or when they are otherwise unable to
locate attractive investment opportunities, the Fund may invest
up to 20% of its net assets in cash or similar investments.
Perkins Value Plus Income Fund seeks capital appreciation
and current income. The fund pursues its investment objective by
normally investing
40-60% of
its assets in equity securities selected primarily for capital
appreciation and investing the remainder in fixed-income
securities and cash equivalents. The funds equity
investments generate total return from a combination of capital
appreciation and, to a lesser degree, current income. Such
equity investments may include companies of any size, but the
fund will
D-4
invest primarily in large-and mid-sized companies whose stock
prices the portfolio managers believe to be undervalued or have
the potential for high relative dividend yields, or both. The
funds fixed-income investments generate total return from
a combination of current income and capital appreciation, but
income is usually the dominant portion. The fund normally
invests the portion of its assets allocated to fixed-income
investments in debt securities (including, but not limited to,
government bonds, corporate bonds, mortgage-backed securities,
asset-backed securities, zero-coupon bonds, and bank loans),
convertible securities, and short-term securities. The fund
invests at least 50% of the fixed-income portion of its assets
in investment grade debt securities. The fund will limit its
investment in high-yield/high-risk bonds, also known as
junk bonds, to 50% or less of the fixed-income
portion of its net assets.
Potential Underlying Funds Included in the Fixed-Income
Securities Asset Category
Janus Flexible Bond Fund seeks to obtain maximum total
return, consistent with preservation of capital. The fund
pursues its investment objective by primarily investing, under
normal circumstances, at least 80% of its net assets in bonds.
Bonds include, but are not limited to, government notes and
bonds, corporate bonds, convertible bonds, mortgage-backed
securities, and zero-coupon bonds. The fund will invest at least
65% of its assets in investment grade debt securities. The fund
will limit its investment in high-yield/high-risk bonds, also
known as junk bonds, to 35% or less of its net
assets. The fund generates total return from a combination of
current income and capital appreciation, but income is usually
the dominant portion. The fund may also invest in asset-backed
securities, money market instruments, bank loans, and foreign
debt securities (which may include investments in emerging
markets).
Janus Global Bond Fund seeks total return, consistent
with preservation of capital. The fund pursues its investment
objective by investing, under normal circumstances, at least 80%
of its net assets in bonds. Bonds include, but are not limited
to, corporate bonds, government notes and bonds, convertible
bonds, mortgage-backed securities, and zero-coupon bonds. The
fund invests in corporate debt securities of issuers in a number
of different countries, which may include the United States. The
fund invests in securities of issuers located in developed and
emerging market countries. The fund may invest across all
fixed-income sectors, including U.S. and
non-U.S. government
securities. The funds investments may be denominated in
local currency or U.S. dollar-denominated. The fund may
invest in debt securities with a range of maturities from
short-to long-term. The fund may invest up to 35% of its net
assets in high-yield/high-risk debt securities. The fund may
also invest in preferred and common stock, money market
instruments, municipal bonds, commercial and residential
mortgage-backed securities, asset-backed securities, other
securitized and structured debt products, private placements,
and other investment companies, including exchange-traded funds.
The fund may also invest in bank loans, euro-denominated
obligations, buy backs or dollar rolls, when-issued securities,
and reverse repurchase agreements.
Janus High-Yield Fund seeks to obtain high current
income. Capital appreciation is a secondary investment objective
when consistent with its primary investment objective. The fund
pursues its investment objectives by investing, under normal
circumstances, at least 80% of its net assets in
high-yield/high-risk securities rated below investment grade.
Securities rated below investment grade may include their
unrated equivalents or other high-yielding securities the
portfolio managers believe offer attractive risk/return
characteristics. The fund may at times invest all of its assets
in such securities. The fund may also invest in bank loans,
money market instruments, and foreign debt securities (which may
include investments in emerging markets).
Janus Real Return Fund seeks real return consistent with
preservation of capital. The fund pursues its investment
objective by primarily investing in U.S. Treasury
securities, short-duration high-yield/high-risk debt,
commodity-linked investments, and equity securities. The
funds investments in U.S. Treasury securities may
also include Treasury Inflation Protected Securities, also known
as TIPS. As utilized by the fund, each of these types of
investments may be considered an inflation-related
investment, which are those that may provide what is known
as real return, or a rate of return above the rate
of inflation over a full market cycle. The fund may invest up to
90% of its net assets in short-duration high-yield/high-risk
debt securities. The funds investments in short-duration
high-yield/high-risk securities include debt rated below
investment grade, also known as junk bonds.
Securities rated below investment grade may include their
unrated equivalents or other high-yielding securities the
portfolio managers believe offer attractive risk/return
characteristics. The fund may also invest in certain investment
grade debt instruments, including corporate bonds, government
bonds, municipal bonds, mortgage-backed securities, zero-coupon
bonds, and agency securities. The fund may invest in foreign
debt securities.
Janus Short-Term Bond Fund seeks as high a level of
current income as is consistent with preservation of capital.
The fund invests, under normal circumstances, at least 80% of
its net assets in short-and intermediate-term securities such as
corporate bonds or notes or government securities, including
agency securities. The fund may invest up to 35% of its net
assets in high-yield/high-risk bonds, also known as junk
bonds. The fund expects to maintain an average-weighted
effective maturity of three years or less
D-5
under normal circumstances. The fund may also invest in bank
loans, mortgage-backed securities, asset-backed securities, and
foreign debt securities (which may include investments in
emerging markets).
Potential Underlying Funds Included in the Alternative
Investments Asset Category
Janus Diversified Alternatives Fund pursues its
investment objective by investing in a diverse group of return
drivers, each a risk premia, across equity, fixed
income, commodity, and currency asset classes. Risk premia
refers to the return that is expected for assuming a particular
market risk. For example, investors expect a higher return in
exchange for the perceived risks associated with investing in
emerging markets as compared to investing in developed markets.
Accordingly, a belief that emerging market equities may
outperform developed market equities presents a risk premia
opportunity. The Fund seeks to generate returns by identifying
and isolating diverse sources of potential risk premia, and
combining these individual risk premia into a liquid portfolio
that delivers consistent, absolute returns with a low
correlation to the returns generated by investments in stocks
and bonds.
The Fund employs a proprietary multi-factor process to allocate
the Funds assets across the various risk premia. The
process begins with an approximate equal-weighted risk to each
risk premia in which the Fund invests, so that no individual
risk premia contributes disproportionately to the Funds
risk profile and expected returns over the long term. Next, the
Fund applies additional advanced allocation methodologies to the
portfolio to tactically adjust the weights of individual risk
premia. The risk premia allocations are rebalanced from time to
time, and depending on market conditions and the portfolio
managers beliefs regarding the expected returns, relative
risk and correlation properties of one or more individual risk
premia, the Fund may not utilize all identified risk premia in
its investment process at all times. Janus Capital believes that
this allocation process may provide better risk adjusted returns
than a traditional asset allocation strategy that employs fixed
weights for asset classes.
Janus Global Real Estate Fund seeks total return through
a combination of capital appreciation and current income. The
fund invests, under normal circumstances, at least 80% of its
net assets plus the amount of any borrowings for investment
purposes, in equity and debt securities of real estate-related
companies. Such companies may include those in the real estate
industry or real estate-related industries. These securities may
include common stocks, preferred stocks, and other equity
securities, including, but not limited to, REITs and similar
REIT-like entities. As a fundamental policy, the fund will
concentrate 25% or more of its net assets in securities of
issuers in real estate or real estate-related industries. The
funds investment in companies engaged in businesses
outside the real estate industry which possess significant real
estate holdings will be deemed to be in the real estate industry
for purposes of the funds investment objective and its
policy on industry concentration. The fund expects under normal
market conditions to maintain investments in issuers from
several different developed countries, including the United
States. Under unusual circumstances, the fund may invest all of
its assets in a single country. The fund may invest in emerging
markets but will normally limit such investments to 15% of its
net assets, measured at the time of purchase.
D-6
APPENDIX E
GLOSSARY
OF INVESTMENT TERMS
This glossary provides a more detailed description of some of
the types of securities, investment strategies, and other
instruments in which the Funds may invest, as well as some
general investment terms. The Funds may invest in these
instruments to the extent permitted by their investment
objectives and policies. The Funds are not limited by this
discussion and may invest in any other types of instruments not
precluded by the policies discussed elsewhere in this
Prospectus/Information Statement.
EQUITY
AND DEBT SECURITIES
Average-Weighted Effective Maturity is a measure
of a bonds maturity. The stated maturity of a bond is the
date when the issuer must repay the bonds entire principal
value to an investor. Some types of bonds may also have an
effective maturity that is shorter than the stated
date due to prepayment or call provisions. Securities without
prepayment or call provisions generally have an effective
maturity equal to their stated maturity. Average-weighted
effective maturity is calculated by averaging the effective
maturity of bonds held by a Fund with each effective maturity
weighted according to the percentage of net assets
that it represents.
Bank loans include institutionally-traded floating
and fixed-rate debt securities generally acquired as a
participation interest in or assignment of a loan originated by
a lender or financial institution. Assignments and
participations involve credit, interest rate, and liquidity
risk. Interest rates on floating rate securities adjust with
interest rate changes
and/or
issuer credit quality. If a Fund purchases a participation
interest, it may only be able to enforce its rights through the
lender and may assume the credit risk of both the borrower and
the lender. Additional risks are involved in purchasing
assignments. If a loan is foreclosed, a Fund may become part
owner of any collateral securing the loan and may bear the costs
and liabilities associated with owning and disposing of any
collateral. The Fund could be held liable as a co-lender. In
addition, there is no assurance that the liquidation of any
collateral from a secured loan would satisfy a borrowers
obligations or that any collateral could be liquidated. A Fund
may have difficulty trading assignments and participations to
third parties or selling such securities in secondary markets,
which in turn may affect the Funds NAV.
Bonds are debt securities issued by a company,
municipality, government, or government agency. The issuer of a
bond is required to pay the holder the amount of the loan (or
par value of the bond) at a specified maturity and to make
scheduled interest payments.
Certificates of Participation (COPs)
are certificates representing an interest in a pool of
securities. Holders are entitled to a proportionate interest in
the underlying securities. Municipal lease obligations are often
sold in the form of COPs. Refer to Municipal lease
obligations below.
Commercial paper is a short-term debt obligation
with a maturity ranging from 1 to 270 days issued by banks,
corporations, and other borrowers to investors seeking to invest
idle cash. A Fund may purchase commercial paper issued in
private placements under Section 4(2) of the Securities Act
of 1933, as amended (the 1933 Act).
Common stocks are equity securities representing
shares of ownership in a company and usually carry voting rights
and earn dividends. Unlike preferred stock, dividends on common
stock are not fixed but are declared at the discretion of the
issuers board of directors.
Convertible securities are preferred stocks or
bonds that pay a fixed dividend or interest payment and are
convertible into common stock at a specified price or conversion
ratio.
Debt securities are securities representing money
borrowed that must be repaid at a later date. Such securities
have specific maturities and usually a specific rate of interest
or an original purchase discount.
Depositary receipts are receipts for shares of a
foreign-based corporation that entitle the holder to dividends
and capital gains on the underlying security. Receipts include
those issued by domestic banks (American Depositary Receipts),
foreign banks (Global or European Depositary Receipts), and
broker-dealers (depositary shares).
Duration is the time it will take investors to
recoup their investment in a bond. Unlike average maturity,
duration reflects both principal and interest payments.
Generally, the higher the coupon rate on a bond, the lower its
duration will be. The duration of a bond portfolio is calculated
by averaging the duration of bonds held by a Fund with each
duration weighted according to the
E-1
percentage of net assets that it represents. Because duration
accounts for interest payments, a Funds duration is
usually shorter than its average maturity.
Equity securities generally include domestic and
foreign common stocks; preferred stocks; securities convertible
into common stocks or preferred stocks; warrants to purchase
common or preferred stocks; and other securities with equity
characteristics.
Exchange-traded funds (ETFs) are
index-based investment companies which hold substantially all of
their assets in securities with equity characteristics. As a
shareholder of another investment company, a Fund would bear its
pro rata portion of the other investment companys
expenses, including advisory fees, in addition to the expenses
the Fund bears directly in connection with its own operations.
Fixed-income securities are securities that pay a
specified rate of return. The term generally includes short-and
long-term government, corporate, and municipal obligations that
pay a specified rate of interest, dividends, or coupons for a
specified period of time. Coupon and dividend rates may be fixed
for the life of the issue or, in the case of adjustable and
floating rate securities, for a shorter period.
High-yield/high-risk bonds are bonds that are
rated below investment grade by the primary rating agencies
(i.e., BB+ or lower by Standard & Poors and
Fitch, or Ba or lower by Moodys). Other terms commonly
used to describe such bonds include lower rated
bonds, non-investment grade bonds, and
junk bonds.
Industrial development bonds are revenue bonds
that are issued by a public authority but which may be backed
only by the credit and security of a private issuer and may
involve greater credit risk. Refer to Municipal
securities below.
Mortgage- and asset-backed securities are shares
in a pool of mortgages or other debt instruments. These
securities are generally pass-through securities, which means
that principal and interest payments on the underlying
securities (less servicing fees) are passed through to
shareholders on a pro rata basis. These securities involve
prepayment risk, which is the risk that the underlying mortgages
or other debt may be refinanced or paid off prior to their
maturities during periods of declining interest rates. In that
case, a Fund may have to reinvest the proceeds from the
securities at a lower rate. Potential market gains on a security
subject to prepayment risk may be more limited than potential
market gains on a comparable security that is not subject to
prepayment risk.
Mortgage dollar rolls are transactions in which a
Fund sells a mortgage-related security, such as a security
issued by Government National Mortgage Association, to a dealer
and simultaneously agrees to purchase a similar security (but
not the same security) in the future at a predetermined price. A
dollar roll can be viewed as a collateralized
borrowing in which a Fund pledges a mortgage-related security to
a dealer to obtain cash.
Municipal lease obligations are revenue bonds
backed by leases or installment purchase contracts for property
or equipment. Lease obligations may not be backed by the issuing
municipalitys credit and may involve risks not normally
associated with general obligation bonds and other revenue
bonds. For example, their interest may become taxable if the
lease is assigned and the holders may incur losses if the issuer
does not appropriate funds for the lease payments on an annual
basis, which may result in termination of the lease and possible
default.
Municipal securities are bonds or notes issued by
a U.S. state or political subdivision. A municipal security
may be a general obligation backed by the full faith and credit
(i.e., the borrowing and taxing power) of a municipality or a
revenue obligation paid out of the revenues of a designated
project, facility, or revenue source.
Pass-through securities are shares or certificates
of interest in a pool of debt obligations that have been
repackaged by an intermediary, such as a bank or broker-dealer.
Passive foreign investment companies (PFICs)
are any foreign corporations which generate certain
amounts of passive income or hold certain amounts of assets for
the production of passive income. Passive income includes
dividends, interest, royalties, rents, and annuities. To avoid
taxes and interest that a Fund must pay if these investments are
profitable, the Fund may make various elections permitted by the
tax laws. These elections could require that a Fund recognize
taxable income, which in turn must be distributed, before the
securities are sold and before cash is received to pay the
distributions.
Pay-in-kind
bonds are debt securities that normally give the issuer
an option to pay cash at a coupon payment date or give the
holder of the security a similar bond with the same coupon rate
and a face value equal to the amount of the coupon payment that
would have been made.
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Preferred stocks are equity securities that
generally pay dividends at a specified rate and have preference
over common stock in the payment of dividends and liquidation.
Preferred stock generally does not carry voting rights.
Real estate investment trust (REIT) is
an investment trust that operates through the pooled capital of
many investors who buy its shares. Investments are in direct
ownership of either income property or mortgage loans.
Rule 144A securities are securities that are
not registered for sale to the general public under the
1933 Act, but that may be resold to certain institutional
investors.
Standby commitment is a right to sell a specified
underlying security or securities within a specified period of
time and at an exercise price equal to the amortized cost of the
underlying security or securities plus accrued interest, if any,
at the time of exercise, that may be sold, transferred, or
assigned only with the underlying security or securities. A
standby commitment entitles the holder to receive same day
settlement, and will be considered to be from the party to whom
the investment company will look for payment of the exercise
price.
Step coupon bonds are high-quality issues with
above-market interest rates and a coupon that increases over the
life of the bond. They may pay monthly, semiannual, or annual
interest payments. On the date of each coupon payment, the
issuer decides whether to call the bond at par, or whether to
extend it until the next payment date at the new coupon rate.
Strip bonds are debt securities that are stripped
of their interest (usually by a financial intermediary) after
the securities are issued. The market value of these securities
generally fluctuates more in response to changes in interest
rates than interest-paying securities of comparable maturity.
Tender option bonds are relatively long-term bonds
that are coupled with the option to tender the securities to a
bank, broker-dealer, or other financial institution at periodic
intervals and receive the face value of the bond. This
investment structure is commonly used as a means of enhancing a
securitys liquidity.
U.S. Government securities include direct
obligations of the U.S. Government that are supported by
its full faith and credit. Treasury bills have initial
maturities of less than one year, Treasury notes have initial
maturities of one to ten years, and Treasury bonds may be issued
with any maturity but generally have maturities of at least ten
years. U.S. Government securities also include indirect
obligations of the U.S. Government that are issued by
federal agencies and government sponsored entities. Unlike
Treasury securities, agency securities generally are not backed
by the full faith and credit of the U.S. Government. Some
agency securities are supported by the right of the issuer to
borrow from the Treasury, others are supported by the
discretionary authority of the U.S. Government to purchase
the agencys obligations, and others are supported only by
the credit of the sponsoring agency.
Variable and floating rate securities have
variable or floating rates of interest and, under certain
limited circumstances, may have varying principal amounts.
Variable and floating rate securities pay interest at rates that
are adjusted periodically according to a specified formula,
usually with reference to some interest rate index or market
interest rate (the underlying index). The floating
rate tends to decrease the securitys price sensitivity to
changes in interest rates.
Warrants are securities, typically issued with
preferred stock or bonds, which give the holder the right to buy
a proportionate amount of common stock at a specified price. The
specified price is usually higher than the market price at the
time of issuance of the warrant. The right may last for a period
of years or indefinitely.
Zero coupon bonds are debt securities that do not
pay regular interest at regular intervals, but are issued at a
discount from face value. The discount approximates the total
amount of interest the security will accrue from the date of
issuance to maturity. The market value of these securities
generally fluctuates more in response to changes in interest
rates than interest-paying securities.
FUTURES,
OPTIONS, AND OTHER DERIVATIVES
Credit default swaps are a specific kind of
counterparty agreement that allows the transfer of third party
credit risk from one party to the other. One party in the swap
is a lender and faces credit risk from a third party, and the
counterparty in the credit default swap agrees to insure this
risk in exchange for regular periodic payments.
Derivatives are financial instruments whose
performance is derived from the performance of another asset
(stock, bond, commodity, currency, interest rate or market
index). Types of derivatives can include, but are not limited to
options, forward contracts, swaps, and futures contracts.
Equity-linked structured notes are derivative
securities which are specially designed to combine the
characteristics of one or more underlying securities and their
equity derivatives in a single note form. The return
and/or yield
or income component may be
E-3
based on the performance of the underlying equity securities, an
equity index,
and/or
option positions. Equity-linked structured notes are typically
offered in limited transactions by financial institutions in
either registered or non-registered form. An investment in
equity-linked notes creates exposure to the credit risk of the
issuing financial institution, as well as to the market risk of
the underlying securities. There is no guaranteed return of
principal with these securities, and the appreciation potential
of these securities may be limited by a maximum payment or call
right. In certain cases, equity-linked notes may be more
volatile and less liquid than less complex securities or other
types of fixed-income securities. Such securities may exhibit
price behavior that does not correlate with other fixed-income
securities.
Equity swaps involve the exchange by two parties
of future cash flow (e.g., one cash flow based on a referenced
interest rate and the other based on the performance of stock or
a stock index).
Forward contracts are contracts to purchase or
sell a specified amount of a financial instrument for an agreed
upon price at a specified time. Forward contracts are not
currently exchange-traded and are typically negotiated on an
individual basis. A Fund may enter into forward currency
contracts for investment purposes or to hedge against declines
in the value of securities denominated in, or whose value is
tied to, a currency other than the U.S. dollar or to reduce
the impact of currency appreciation on purchases of such
securities. It may also enter into forward contracts to purchase
or sell securities or other financial indices.
Futures contracts are contracts that obligate the
buyer to receive and the seller to deliver an instrument or
money at a specified price on a specified date. A Fund may buy
and sell futures contracts on foreign currencies, securities,
and financial indices including indices of U.S. Government,
foreign government, equity, or fixed-income securities. A Fund
may also buy options on futures contracts. An option on a
futures contract gives the buyer the right, but not the
obligation, to buy or sell a futures contract at a specified
price on or before a specified date. Futures contracts and
options on futures are standardized and traded on designated
exchanges.
Indexed/structured securities are typically short-
to intermediate-term debt securities whose value at maturity or
interest rate is linked to currencies, interest rates, equity
securities, indices, commodity prices, or other financial
indicators. Such securities may be positively or negatively
indexed (e.g., their value may increase or decrease if the
reference index or instrument appreciates). Indexed/structured
securities may have return characteristics similar to direct
investments in the underlying instruments and may be more
volatile than the underlying instruments. A Fund bears the
market risk of an investment in the underlying instruments, as
well as the credit risk of the issuer.
Interest rate swaps involve the exchange by two
parties of their respective commitments to pay or receive
interest (e.g., an exchange of floating rate payments for fixed
rate payments).
Inverse floaters are debt instruments whose
interest rate bears an inverse relationship to the interest rate
on another instrument or index. For example, upon reset, the
interest rate payable on the inverse floater may go down when
the underlying index has risen. Certain inverse floaters may
have an interest rate reset mechanism that multiplies the
effects of change in the underlying index. Such mechanism may
increase the volatility of the securitys market value.
Options are the right, but not the obligation, to
buy or sell a specified amount of securities or other assets on
or before a fixed date at a predetermined price. A Fund may
purchase and write put and call options on securities,
securities indices, and foreign currencies. A Fund may purchase
or write such options individually or in combination.
Participatory notes are derivative securities
which are linked to the performance of an underlying Indian
security and which allow investors to gain market exposure to
Indian securities without trading directly in the local Indian
market.
Total return swaps involve an exchange by two
parties in which one party makes payments based on a set rate,
either fixed or variable, while the other party makes payments
based on the return of an underlying asset, which includes both
the income it generates and any capital gains over the payment
period.
OTHER
INVESTMENTS, STRATEGIES, AND/OR TECHNIQUES
Cash sweep program is an arrangement in which a
Funds uninvested cash balance is used to purchase shares
of affiliated or non-affiliated money market funds or cash
management pooled investment vehicles at the end of each day.
Diversification is a classification given to a
fund under the 1940 Act. Funds are classified as either
diversified or nondiversified. To be
classified as diversified under the 1940 Act, a fund
may not, with respect to 75% of its total assets, invest more
than 5% of its total assets in any issuer and may not own more
than 10% of the outstanding voting securities of an issuer. A
fund that is classified as nondiversified under the
1940 Act, on the other hand, has the flexibility to take larger
positions in a smaller number of issuers than a fund that is
classified as diversified. However, because the
appreciation or depreciation of a
E-4
single security may have a greater impact on the net asset value
of a fund which is classified as nondiversified, its share price
can be expected to fluctuate more than a comparable fund which
is classified as diversified.
Industry concentration for purposes under the 1940
Act is the investment of 25% or more of a Funds total
assets in an industry or group of industries.
Leverage is when a Fund increases its assets
available for investment using borrowings or similar
transactions. Because short sales involve borrowing securities
and then selling them, a Funds short sales effectively
leverage the Funds assets. The use of leverage may make
any change in a Funds NAV even greater and thus result in
increased volatility of returns. A Funds assets that are
used as collateral to secure the short sales may decrease in
value while the short positions are outstanding, which may force
the Fund to use its other assets to increase the collateral.
Leverage also creates interest expense that may lower a
Funds overall returns.
Market capitalization is the most commonly used
measure of the size and value of a company. It is computed by
multiplying the current market price of a share of the
companys stock by the total number of its shares
outstanding. Market capitalization is an important investment
criterion for certain funds, while others do not emphasize
investments in companies of any particular size.
Net long is a term used to describe when a
Funds assets committed to long positions exceed those
committed to short positions.
Repurchase agreements involve the purchase of a
security by a Fund and a simultaneous agreement by the seller
(generally a bank or dealer) to repurchase the security from the
Fund at a specified date or upon demand. This technique offers a
method of earning income on idle cash. These securities involve
the risk that the seller will fail to repurchase the security,
as agreed. In that case, a Fund will bear the risk of market
value fluctuations until the security can be sold and may
encounter delays and incur costs in liquidating the security.
Reverse repurchase agreements involve the sale of
a security by a Fund to another party (generally a bank or
dealer) in return for cash and an agreement by the Fund to buy
the security back at a specified price and time. This technique
will be used primarily to provide cash to satisfy unusually high
redemption requests, or for other temporary or emergency
purposes.
Short sales in which a Fund may engage may be
either short sales against the box or other short
sales. Short sales against the box involve selling short a
security that a Fund owns, or the Fund has the right to obtain
the amount of the security sold short at a specified date in the
future. A Fund may also enter into a short sale to hedge against
anticipated declines in the market price of a security or to
reduce portfolio volatility. If the value of a security sold
short increases prior to the scheduled delivery date, the Fund
loses the opportunity to participate in the gain. For short
sales, the Fund will incur a loss if the value of a security
increases during this period because it will be paying more for
the security than it has received from the purchaser in the
short sale. If the price declines during this period, a Fund
will realize a short-term capital gain. Although a Funds
potential for gain as a result of a short sale is limited to the
price at which it sold the security short less the cost of
borrowing the security, its potential for loss is theoretically
unlimited because there is no limit to the cost of replacing the
borrowed security.
When-issued, delayed delivery, and forward commitment
transactions generally involve the purchase of a
security with payment and delivery at some time in the
future i.e., beyond normal settlement. A Fund does
not earn interest on such securities until settlement and bears
the risk of market value fluctuations in between the purchase
and settlement dates. New issues of stocks and bonds, private
placements, and U.S. Government securities may be sold in
this manner.
E-5
JANUS
INVESTMENT FUND
STATEMENT
OF ADDITIONAL INFORMATION
[ ,
2012]
Relating
to the acquisition of the assets of
JANUS
WORLD ALLOCATION FUND
by and in
exchange for shares of beneficial interest of
JANUS
MODERATE ALLOCATION FUND
each, a series of Janus Investment Fund
151 Detroit Street
Denver, Colorado
80206-4805
1-800-525-0020
This Statement of Additional Information (the SAI)
expands upon and supplements the information contained in the
prospectus and information statement (the
Prospectus/Information Statement) dated
[ , 2012]. The
Prospectus/Information Statement is being furnished to
shareholders of Janus World Allocation Fund, a series of Janus
Investment Fund, in connection with the merger of Janus World
Allocation Fund with and into Janus Moderate Allocation Fund, a
series of Janus Investment Fund, pursuant to which all of the
assets and liabilities of Janus World Allocation Fund would be
transferred to Janus Moderate Allocation Fund in exchange for
shares of beneficial interest of Janus Moderate Allocation Fund
(the Merger).
This SAI is not a prospectus and should be read in conjunction
with the Prospectus/Information Statement. A copy of the
Prospectus/Information Statement may be obtained without charge
by contacting Janus Capital Management LLC (Janus
Capital) at 151 Detroit Street, Denver, Colorado 80206 or
by telephoning Janus toll-free at
1-800-525-0020.
This SAI consists of: (i) this cover page and (ii) the
following documents, each of which was filed electronically with
the U.S. Securities and Exchange Commission (the
SEC) and is incorporated by reference herein:
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1.
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The SAI for Janus World Allocation Fund, dated October 26,
2012 (File
No. 002-34393).
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2.
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The SAI for Janus Moderate Allocation Fund, dated
October 26, 2012 (File
No. 002-34393).
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3.
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The Financial Statements of Janus World Allocation Fund included
in the annual report dated June 30, 2012, as filed on
August 29, 2012 (File No:
811-01879).
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4.
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The Financial Statements of Janus Moderate Allocation Fund
included in the annual report dated June 30, 2012, as filed
on August 29, 2012 (File No:
811-01879).
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As described in the Prospectus/Information Statement, upon the
closing of such Merger, each owner of Class A Shares,
Class C Shares, Class I Shares, Class S Shares,
and Class T Shares of Janus World Allocation Fund would
become a shareholder of the corresponding class of shares of
Janus Moderate Allocation Fund. Information about Janus Moderate
Allocation Fund is provided in the Prospectus/Information
Statement.
Pro forma financial statements reflecting consummation of
the merger have not been prepared because the value of Janus
World Allocation Funds net assets was 10% or less of Janus
Moderate Allocation Funds net assets as of
November 30, 2012.
JANUS INVESTMENT FUND
PART C OTHER INFORMATION
ITEM 28. Exhibits
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Exhibit 1 |
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(a)
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Amended and Restated Agreement and Declaration of Trust, dated
March 18, 2003, is incorporated herein by reference to Exhibit
1(ii) to Post-Effective Amendment No. 109, filed on April 17,
2003 (File No. 2-34393). |
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(b)
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Certificate of Amendment Establishing and Designating Series,
dated September 16, 2003, is incorporated herein by reference to
Exhibit 1(jj) to Post-Effective Amendment No. 110, filed on
December 23, 2003 (File No. 2-34393). |
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(c)
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Form of Certificate of Establishment and Designation of Janus
Smart Portfolios is incorporated herein by reference to Exhibit
1(nn) to Post-Effective Amendment No. 114, filed on October 14,
2005 (File No. 2-34393). |
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(d)
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Certificate of Amendment of the Amended and Restated Agreement
and Declaration of Trust is incorporated herein by reference to
Exhibit 1(a) to N-14/A Pre-Effective Amendment No. 1, filed on
August 8, 2006 (File No. 2-34393). |
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(e)
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Certificate of Amendment of the Amended and Restated Agreement
and Declaration of Trust is incorporated herein by reference to
Exhibit 1(b) to N-14/A Pre-Effective Amendment No. 1, filed on
August 8, 2006 (File No. 2-34393). |
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(f)
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Certificate of Amendment of the Amended and Restated Agreement
and Declaration of Trust is incorporated herein by reference to
Exhibit 1(qq) to Post-Effective Amendment No. 119, filed on
December 19, 2006 (File No. 2-34393). |
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(g)
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Form of Certificate of Establishment and Designation of Series
and Share Classes is incorporated herein by reference to Exhibit
(a)(20) to Post-Effective Amendment No. 126, filed on July 2,
2009 (File No. 2-34393). |
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(h)
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Form of Certificate of Establishment, Designation and
Redesignation of Share Classes is incorporated herein by
reference to Exhibit (a)(21) to Post-Effective Amendment No. 126,
filed on July 2, 2009 (File No. 2-34393). |
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C-1
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(i)
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Form of Certificate of Establishment, Designation and
Redesignation of Share Classes is incorporated herein by
reference to Exhibit (a)(22) to Post-Effective Amendment No. 130,
filed on February 16, 2010 (File No. 2-34393). |
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(j)
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Certificate of Amendment of the Amended and Restated Agreement
and Declaration of Trust is incorporated herein by reference to
Exhibit 1(b) to N-14/A Pre-Effective Amendment No. 1, filed on
August 8, 2006 (File No. 2-34393). |
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(k)
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Certificate Redesignating Janus Smart Portfolio Growth, Janus
Smart Portfolio Moderate, and Janus Smart Portfolio
Conservative, dated July 22, 2010, is incorporated herein by
reference to Exhibit (a)(25) to Post-Effective Amendment No. 133,
filed on August 25, 2010 (File No. 2-34393). |
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Exhibit 2 |
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(a)
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Amended and Restated Bylaws are incorporated herein by reference
to Exhibit 2(e) to Post-Effective Amendment No. 112, filed on
December 10, 2004 (File No. 2-34393). |
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(b)
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First Amendment to the Amended and Restated Bylaws is
incorporated herein by reference to Exhibit 2(f) to
Post-Effective Amendment No. 114, filed on October 14, 2005 (File
No. 2-34393). |
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(c)
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Second Amendment to the Amended and Restated Bylaws is
incorporated herein by reference to Exhibit 2(g) to
Post-Effective Amendment No. 114, filed on October 14, 2005 (File
No. 2-34393). |
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Exhibit 3 (Not Applicable) |
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Exhibit 4 |
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(a)
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Form of Agreement and Plan of Reorganization by and between Janus
Investment Fund, on behalf of Janus World Allocation Fund and
Janus Moderate Allocation Fund, is filed herein as Exhibit
(4)(a). |
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Exhibit 5 (Not Applicable) |
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Exhibit 6 |
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(a)
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Form of Investment Advisory Agreement for Janus Smart Portfolio
Moderate is incorporated herein by reference to Exhibit 4(www) to
Post-Effective Amendment No. 114, filed on October 14, 2005 (File
No. 2-34393). |
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(b)
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Amendment to Investment Advisory Agreement for Janus Smart
Portfolio Moderate dated June 14, 2006 is incorporated herein
by reference to Exhibit 4(zzzzz) to Post-Effective Amendment No.
119, filed on December 19, 2006 (File No. 2-34393). |
C-2
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(c)
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Amendment to Investment Advisory Agreement for Janus Smart
Portfolio Moderate dated August 2, 2010 is incorporated herein
by reference to Exhibit (d)(168) to Post-Effective Amendment No.
133, filed on August 25, 2010 (File No. 2-34393). |
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Exhibit 7 |
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(a)
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Distribution Agreement between Janus Investment Fund and Janus
Distributors, Inc., dated July 1, 1997, is incorporated herein by
reference to Exhibit 6 to Post-Effective Amendment No. 83, filed
on December 15, 1997 (File No. 2-34393). |
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(b)
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Distribution Agreement between Janus Investment Fund and Janus
Distributors LLC, dated June 18, 2002, is incorporated herein by
reference to Exhibit 5(b) to Post-Effective Amendment No. 105,
filed on December 13, 2002 (File No. 2-34393). |
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(c)
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Amendment to Amended and Restated Distribution Agreement between
Janus Investment Fund and Janus Distributors LLC, dated June 14,
2006, is incorporated herein by reference to Exhibit 5(c) to
Post-Effective Amendment No. 119, filed on December 19, 2006
(File No. 2-34393). |
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(d)
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Amendment to Amended and Restated Distribution Agreement between
Janus Investment Fund and Janus Distributors LLC, dated January
1, 2008, is incorporated herein by reference to Exhibit 5(d) to
Post-Effective Amendment No. 122, filed on February 28, 2008
(File No. 2-34393). |
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(e)
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Form of Amended and Restated Distribution Agreement between Janus
Investment Fund and Janus Distributors LLC is incorporated herein
by reference to Exhibit (e)(5) to Post-Effective Amendment No.
126, filed on July 2, 2009 (File No. 2-34393). |
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(f)
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Form of Intermediary Services Agreement is incorporated herein by
reference to Exhibit (e)(6) to Post-Effective Amendment No. 126,
filed on July 2, 2009 (File No. 2-34393). |
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(g)
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Form of Amended and Restated Distribution Agreement between Janus
Investment Fund and Janus Distributors LLC is incorporated herein
by reference to Exhibit (e)(7) to Post-Effective Amendment No.
130, filed on February 16, 2010 (File No. 2-34393). |
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(h)
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Amended and Restated Distribution Agreement between Janus
Investment Fund and Janus Distributors LLC, dated May 31, 2012,
is incorporated herein by reference to Exhibit (e)(8) to
Post-Effective Amendment No. 175, filed on May 31, 2012 (File No.
2-34393). |
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Exhibit 8 (Not Applicable) |
C-3
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Exhibit 9 |
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(a)
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Foreign Custody Amendment to State Street Bank and Trust Company
Custodian Contract dated December 5, 2000 is incorporated herein
by reference to Exhibit 7(u) to Post-Effective Amendment No. 96,
filed on December 18, 2000 (File No. 2-34393). |
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(b)
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Foreign Custody Manager Addendum to Global Custodial Services
Agreement dated December 5, 2000 is incorporated herein by
reference to Exhibit 7(v) to Post-Effective Amendment No. 96,
filed on December 18, 2000 (File No. 2-34393). |
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(c)
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Form of Amendment to State Street Bank and Trust Company
Custodian Contract dated December 5, 2000 is incorporated herein
by reference to Exhibit 7(w) to Post-Effective Amendment No. 96,
filed on December 18, 2000 (File No. 2-34393). |
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(d)
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Form of Amendment to State Street Bank and Trust Company
Custodian Contract dated December 5, 2000 is incorporated herein
by reference to Exhibit 7(x) to Post-Effective Amendment No. 96,
filed on December 18, 2000 (File No. 2-34393). |
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(e)
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Amendment to Custodian Contract dated January 21, 2005, between
Janus Investment Fund, on behalf of its Portfolios, and State
Street Bank and Trust Company is incorporated herein by reference
to Exhibit 7(ii) to Post-Effective Amendment No. 113, filed on
February 24, 2005 (File No. 2-34393). |
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(f)
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Amended and Restated Custodian Contract dated August 1, 2005,
between Janus Investment Fund and State Street Bank and Trust
Company is incorporated herein by reference to Exhibit 7(mm) to
Post-Effective Amendment No. 114, filed on October 14, 2005 (File
No. 2-34393). |
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(g)
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Form of Letter Agreement in regards to Janus Smart Portfolio
Growth, Janus Smart Portfolio Moderate and Janus Smart
Portfolio Conservative, with State Street Bank and Trust
Company is incorporated herein by reference to Exhibit 7(nn) to
Post-Effective Amendment No. 114, filed on October 14, 2005 (File
No. 2-34393). |
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(h)
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Letter Agreement with regard to Janus Smart Portfolio-Growth,
Janus Smart Portfolio-Moderate, and Janus Smart
Portfolio-Conservative with State Street Bank and Trust Company
is incorporated herein by reference to Exhibit
(g)(22) to
Post-Effective Amendment No. 166, filed on December 15, 2011
(File No. 2-34393). |
C-4
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Exhibit 10 |
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(a)
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Form of Distribution and Shareholder Servicing Plan for Class A
Shares is incorporated herein by reference to Exhibit (m)(1) to
Post-Effective Amendment No. 126, filed on July 2, 2009 (File No.
2-34393). |
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(b)
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Form of Distribution and Shareholder Servicing Plan for Class C
Shares is incorporated herein by reference to Exhibit (m)(2) to
Post-Effective Amendment No. 126, filed on July 2, 2009 (File No.
2-34393). |
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(c)
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Form of Distribution and Shareholder Servicing Plan for Class S
Shares is incorporated herein by reference to Exhibit (m)(4) to
Post-Effective Amendment No. 126, filed on July 2, 2009 (File No.
2-34393). |
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(d)
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Form of Amended Rule 18f-3 Plan is incorporated herein by
reference to Exhibit (n)(6) to Post-Effective Amendment No. 126,
filed on July 2, 2009 (File No. 2-34393). |
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(e)
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Form of Amended Rule 18f-3 Plan is incorporated herein by
reference to Exhibit (n)(7) to Post-Effective Amendment No. 130,
filed on February 16, 2010 (File No. 2-34393). |
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Exhibit 11 |
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(a)
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Opinion and Consent of Counsel is to be filed by Amendment. |
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Exhibit 12 |
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(a)
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Tax Opinion is to be filed by Amendment. |
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Exhibit 13 (Not Applicable) |
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Exhibit 14 |
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(a)
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Consent of PricewaterhouseCoopers LLP is to be filed by Amendment. |
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Exhibit 15 (Not Applicable) |
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Exhibit 16 |
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(a)
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Powers of Attorney, dated as of April 11, 2008, are incorporated
herein by reference to Exhibit 15(c) to Post-Effective Amendment
No. 123, filed on February 27, 2009 (File No. 2-34393). |
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(b)
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Power of Attorney, dated as of June 24, 2010, is incorporated
herein by reference to Exhibit (q)(4) to Post-Effective Amendment
No. 132, filed on July 30, 2010 (File No. 2-34393). |
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(c)
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Power of Attorney, dated as of January 5, 2011, is incorporated
herein by reference to Exhibit (q)(5) to Post-Effective Amendment
No. 138, filed on January 28, 2011 (File No. 2-34393). |
C-5
ITEM 17. Undertakings
(1) The undersigned registrant agrees that prior to any public reoffering of the securities
registered through the use of a prospectus which is a part of this registration statement by any
person or party who is deemed to be an underwriter within the meaning of Rule 145(c) of the
Securities Act, the reoffering prospectus will contain the information called for by the applicable
registration form for the reofferings by persons who may be deemed underwriters, in addition to the
information called for by the other items of the applicable form.
(2) The undersigned registrant agrees that every prospectus that is filed under paragraph (1)
above will be filed as a part of an amendment to the registration statement and will not be used
until the amendment is effective, and that, in determining any liability under the 1933 Act, each
post-effective amendment shall be deemed to be a new registration statement for the securities
offered therein, and the offering of the securities at that time shall be deemed to be the initial
bona fide offering of them.
C-6
SIGNATURES
As required by the Securities Act of 1933, as amended, the Registrant has duly caused this
Registration Statement on Form N-14 to be signed on its behalf by the undersigned, thereto duly
authorized, in the City of Denver, and State of Colorado, on the 10th day of December, 2012.
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JANUS INVESTMENT FUND
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By: |
/s/ Robin C. Beery
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Robin C. Beery, President and |
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Chief Executive Officer |
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As required by the Securities Act of 1933, as amended, this Registration Statement on Form
N-14 has been signed below by the following persons in the capacities and on the dates indicated.
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Signature |
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Title |
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Date |
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/s/ Robin C. Beery
Robin C. Beery
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President and Chief Executive
Officer (Principal Executive
Officer)
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December 10, 2012 |
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/s/ Jesper Nergaard
Jesper Nergaard
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Vice President, Chief Financial
Officer, Treasurer and
Principal Accounting Officer
(Principal Financial Officer
and Principal Accounting
Officer)
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December 10, 2012 |
C-7
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Signature |
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Title |
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Date |
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William F. McCalpin*
William F. McCalpin
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Chairman and Trustee
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December 10, 2012 |
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William D. Cvengros*
William D. Cvengros
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Trustee
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December 10, 2012 |
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John P. McGonigle*
John P. McGonigle
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Trustee
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December 10, 2012 |
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James T. Rothe*
James T. Rothe
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Trustee
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December 10, 2012 |
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William D. Stewart*
William D. Stewart
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Trustee
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December 10, 2012 |
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Linda S. Wolf*
Linda S. Wolf
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Trustee
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December 10, 2012 |
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/s/ Stephanie Grauerholz-Lofton |
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*By:
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Stephanie Grauerholz-Lofton |
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Attorney-in-Fact |
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Pursuant to Powers of Attorney, dated April 11, 2008, incorporated by reference to Exhibit
15(c) to Post-Effective Amendment No. 123, filed on February 27, 2009; Power of Attorney,
dated June 24, 2010, incorporated by reference to Exhibit (q)(4) to Post-Effective Amendment
No. 132, filed on July 30, 2010; and Power of Attorney, dated January 5, 2011, incorporated
by reference to Exhibit (q)(5) to Post-Effective Amendment No. 138, filed on January 28,
2011 |
C-8
INDEX OF EXHIBITS
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Exhibit Number |
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Exhibit Title |
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Exhibit 4(a)
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Form of Agreement and Plan of Reorganization by and between
Janus Investment Fund, on behalf of Janus World Allocation
Fund and Janus Moderate Allocation Fund. |
C-9