Global financial markets rallied during the period, first on the back of extraordinary policy initiatives aimed at dampening the worst effects from the COVID-19 pandemic on the world’s economy, and then on growing optimism that vaccines would gain approval and become widely available. While riskier assets maintained an upward trajectory throughout, safer government bonds gave back some of their gains during the winter as investors began to price in more durable economic growth and – with it – inflation. As consensus coalesced around inflation being transitory, the bond sell-off reversed. The rally in riskier assets, meanwhile, continued with global equities finishing the period near record highs.
For the period, the Fund outperformed its secondary – 60% equity, 40% bond – benchmark. Outperformance stemmed from the portfolio’s positioning to profit from the post-lockdown bull market as governments and central banks unleashed fiscal and monetary stimulus of historic magnitudes to cushion against potential permanent economic damage.
The Fund’s investment process focuses on actively managing risk to improve the compounding process beyond its static, secondary benchmark. This active risk management includes both the goal to mitigate downside losses as well as mitigate the risk of missing out on large gains. During the period, the key risk for capital markets was the latter. Our investment process successfully identified this development and increased risk taking in the Fund. As a result, our proprietary signals led the Fund to not only overweight its equity exposure relative to its secondary, 60%/40% benchmark. but also expose the Fund to more cyclical sectors benefiting from economic reopening.
At the same time, our signals reflected poor attractiveness to fixed income for most of the period. As a result, the Fund was underweight duration relative to the secondary benchmark. This underweight helped cushion against the large sell-off in fixed income during first quarter of 2021.
Our proprietary technology garners information constantly from the options markets, and we view their implied estimates of tail risk as robust and reliable indicators of future risk. The strategy sees these indicators as extremely useful in dynamically managing the risk of an investment in order to enhance compound returns, particularly amid structural bear or bull markets. However, at times of rapid mean reversion, the dynamic risk management of the strategy can turn out to be costly as a result of our use of momentum signals that serve as a ballast seeking to protects against large losses. We are willing to pay this cost because, over time, the expected gains from a risk-managed approach are much more significant.
During the period, with the aim of hedging certain exposures, the Fund used a series of derivative instruments including options, futures, swaps and forward exchange contracts. Since many of the derivatives we use,
namely futures and certain options, are liquid, the Fund utilizes them as low-cost instruments to dynamically adjust exposures and manage risk levels to desired targets. Other derivatives, including swaps and forward contracts, are also used to adjust portfolio exposures as conditions merit in a timely and/or cost-effective manner. This may lead to short positions in futures when exposures need to be adjusted downward. For the period, the Fund’s use of derivatives detracted from performance.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Despite the smooth sailing of the capital markets since the start of 2021, we were surprised by the many gyrations underneath the surface. These were a reflection of the battle between the market and the Federal Reserve (Fed) on the future course of inflation and growth and whether the time is coming for liquidity conditions to normalize and the central bank to step back. While the tug-of-war continues, the capital markets have sided with the Fed – for now.
We continue to believe that the economy is on better footing than the Fed believes, and that economic activity will continue to make solid progress. Hence, stimulus for too long could fuel inflation. Should economic progress continue, and the Fed revises its growth expectations, you likely will see a withdrawal of stimulus even without rising inflation; this would lead to a rise in real rates.
We believe that a return to the office and school will accelerate economic activity.
But with this development comes the risk that governments begin to withdraw stimulus and interest rates begin to rise. So good news may in fact be bad news for asset prices whose valuations have soared as accommodation exceeded anything the government did during the Global Financial Crisis.
Our risk-taking level is moderately above expected average levels for this portfolio. But to hedge the risk of tighter policy, our positions include lower duration equities and holding below-average levels of duration in bonds.
Thank you for investing in Janus Henderson Adaptive Global Allocation Fund.
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
There is a risk that the Fund’s investments will correlate with stocks and bonds to a greater degree than anticipated, and the investment process may not achieve the desired results. The Fund may underperform during up markets and be negatively affected in down markets. Diversification does not assure a profit or eliminate the risk of loss.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of June 30, 2021.
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended June 30, 2021.
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
Janus Henderson Adaptive Global Allocation Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks total return through growth of capital and income. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory
programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with United States of America generally accepted accounting principles ("US GAAP").
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service
approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the year ended June 30, 2021 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital's ability to establish and maintain appropriate systems and trading.
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE
shall be used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a forward currency contract is reported on the Statement of Operations (if applicable).
During the year, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to take a negative outlook on the related currency. These forward contracts seek to increase exposure to currency risk.
During the year, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts on commodities are valued at the settlement price on valuation date on the commodities exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract.
Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
During the year, the Fund purchased interest rate futures to increase exposure to interest rate risk.
During the year, the Fund sold interest rate futures to decrease exposure to interest rate risk.
During the year, the Fund purchased futures on equity indices to increase exposure to equity risk.
During the year, the Fund sold futures on equity indices to decrease exposure to equity risk.
During the year, the Fund purchased futures on currency indices to increase exposure to currency risk.
During the year, the Fund sold futures on currency indices to decrease exposure to currency risk.
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed upon price on or before a specified date. The purchaser pays a premium to the seller for this right. The seller has the corresponding obligation to sell or buy a financial instrument if the purchaser (owner) "exercises" the option. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid. Upon expiration, or closing of the option transaction, a realized gain or loss is reported on the Statement of Operations (if applicable). The difference between the premium paid/received and the market value of the
option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported on the Statement of Operations (if applicable). Option contracts are typically valued using an approved vendor’s option valuation model. To the extent reliable market quotations are available, option contracts are valued using market quotations. In cases when an approved vendor cannot provide coverage for an option and there is no reliable market quotation, a broker quotation or an internal valuation using the Black-Scholes model, the Cox-Rubinstein Binomial Option Pricing Model, or other appropriate option pricing model is used. Certain options contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities as “Variation margin receivable” or “Variation margin payable” (if applicable).
The Fund may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Fund generally invests in options to hedge against adverse movements in the value of portfolio holdings. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or unexpected adverse price movements, could render the Fund’s hedging strategy unsuccessful. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. The Fund may be subject to counterparty risk, interest rate risk, liquidity risk, equity risk, commodity risk, and currency risk in the normal course of pursuing its investment objective through its investments in options contracts.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded OTC expose the Fund to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
The Fund may purchase put options to hedge against a decline in the value of its portfolio. By using put options in this way, the Fund will reduce any profit it might otherwise have realized in the underlying security by the amount of the premium paid for the put option and by transaction costs. The Fund may purchase call options to hedge against an increase in the price of securities that it may buy in the future. The premium paid for the call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises sufficiently, the option may expire worthless to the Fund. The risk in buying options is that the Fund pays a premium whether or not the options are exercised. Options purchased are reported in the Schedule of Investments (if applicable).
During the year, the Fund purchased call options on various equity indices for the purpose of increasing exposure to broad equity risk.
During the year, the Fund purchased call options on various stocks and ETFs for the purpose of increasing exposure to individual equity risk.
During the year, the Fund purchased put options on various equity indices for the purpose of decreasing exposure to broad equity risk.
During the year, the Fund purchased put options on various ETFs for the purpose of decreasing exposure to individual equity risk.
There were no purchased options held at June 30, 2021.
In writing an option, the Fund bears the risk of an unfavorable change in the price of the security underlying the written option. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options written are reported as a liability on the Statement of Assets and Liabilities as “Options written, at value” (if applicable). The risk in writing call options is that the Fund gives up the opportunity for profit if the market price of the security increases and the options are exercised. The risk in writing put options is that the Fund may incur a loss if the market price of the security decreases and the options are exercised. The risk in buying options is that the Fund pays a premium whether or not the options are exercised. Exercise of an option written by the Fund could result in the Fund buying or selling a security at a price different from the current market value.
During the year, the Fund wrote call options on various equity indices for the purpose of decreasing exposure to broad equity risk.
During the year, the Fund wrote call options on various stocks and ETFs for the purpose of decreasing exposure to individual equity risk and/or generating income.
During the year, the Fund wrote put options on various equity indices for the purpose of increasing exposure to broad equity risk.
During the year, the Fund wrote put options on various stocks and ETFs for the purpose of increasing exposure to individual equity risk and/or generating income.
There were no written options held at June 30, 2021.
3. Other Investments and Strategies
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
The Fund may invest in exchange-traded funds (“ETFs”) and mutual funds to gain exposure to a particular portion of the market. ETFs are typically open-end investment companies, which may seek to track the performance of a specific index or be actively managed. ETFs are traded on a national securities exchange at market prices that may vary from the net asset value of their underlying investments. Accordingly, there may be times when an ETF trades at a premium or discount. When the Fund invests in an ETF or mutual fund, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the ETF's or mutual fund’s expenses. As a result, the cost of investing in the Fund may be higher than the cost of investing directly in ETFs or mutual funds and may be higher than other mutual funds that invest directly in stocks and bonds. ETFs also involve the risk that an active trading market for an ETF's shares may not develop or be maintained. Similarly, because the value of ETF shares depends on the demand in the market, the Fund may not be able to purchase or sell an ETF at the most optimal time, which could adversely affect the Fund’s performance. In addition, ETFs that track particular indices may be unable to match the performance of such underlying indices due to the temporary unavailability of certain index securities in the secondary market or other factors, such as discrepancies with respect to the weighting of securities. Because the Fund may invest in a broad range of ETFs and mutual funds, such risks may include, but are not limited to, leverage risk, foreign exposure risk, interest rate risk, emerging markets risk, fixed-income risk, and commodity-linked investments risk. The Fund is also subject to the risks associated with the securities in which the ETF or mutual fund invests.
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment.
The following tables present gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of June 30, 2021” table located in the Fund’s Schedule of Investments.
JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
The Fund may invest 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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss
in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to primarily invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of June 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $10,614,668. Gross amounts of recognized liabilities for securities lending (collateral received) as of June 30, 2021 is $10,840,152, resulting in the net amount due to the counterparty of $225,484.
The Fund may engage in “short sales against the box.” Short sales against the box involve either selling short a security that the Fund owns or selling short a security that the Fund has the right to obtain, for delivery at a specified date in the future. The Fund may enter into short sales against the box to hedge against anticipated declines in the market price of portfolio securities. The Fund does not deliver from its portfolio the securities sold short and does not immediately receive the proceeds of the short sale. The Fund borrows the securities sold short and receives proceeds from the short sale only when it delivers the securities to the lender. If the value of the securities sold short increases prior to the scheduled delivery date, the Fund loses the opportunity to participate in the gain.
The Fund may also engage in other short sales. The Fund may engage in short sales when the portfolio manager(s) and/or investment personnel anticipate that a security’s market purchase price will be less than its borrowing price. To complete the transaction, the Fund must borrow the security to deliver it to the purchaser and buy that same security in the market to return it to the lender. Although the potential for gain as a result of a short sale is limited to the price at which the Fund sold the security short less the cost of borrowing the security, the potential for loss is theoretically unlimited because there is no limit to the cost of replacing the borrowed security. There is no assurance the Fund will be able to close out a short position at a particular time or at an acceptable price. A lender may request, or market conditions may dictate, that the securities sold short be returned to it on short notice, and the Fund may have to buy the
borrowed securities at an unfavorable price. If this occurs at a time when other short sellers of the same security also want to close out their positions, it is more likely that the Fund will have to cover its short sale at an unfavorable price and potentially reduce or eliminate any gain, or cause a loss, as a result of the short sale. A gain or a loss will be recognized upon termination of a short sale. Short sales held by the Fund are fully collateralized by restricted cash or other securities, which are denoted on the accompanying Schedule of Investments. The Fund is also required to pay the lender of the security any dividends or interest that accrues on a borrowed security during the period of the loan. Depending on the arrangements made with the broker or custodian, the Fund may or may not receive any payments (including interest) on collateral it has deposited with the broker. The Fund pays stock loan fees, disclosed on the Statement of Operations, on assets borrowed from the security broker.
The Fund may also enter into short positions through derivative instruments, such as options contracts, futures contracts, and swap agreements, which may expose the Fund to similar risks. To the extent that the Fund enters into short derivative positions, the Fund may be exposed to risks similar to those associated with short sales, including the risk that the Fund’s losses are theoretically unlimited.
There were no short sales held at June 30, 2021.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
The Fund’s actual investment advisory fee rate for the reporting period was 0.75% of average annual net assets before any applicable waivers.
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.66% of the Fund’s average daily net assets. In addition, Janus Capital shall additionally reimburse or waive acquired fund fees and expenses to the extent they exceed 0.10%. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. The previous expense limit (for at least a one-year period commencing October 28, 2019) was 0.71%. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the
Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates
may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $567.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class C Shares during the year ended June 30, 2021.
As of June 30, 2021, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, derivatives, and foreign currency contract adjustments. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
During the year ended June 30, 2021, capital loss carryovers of $677,108 were utilized by the Fund. There are no unused capital loss carryovers
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships, and investments in passive foreign investment companies.
Information on the tax components of derivatives as of June 30, 2021 is as follows:
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, passive foreign investment companies, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
Capital has been adjusted by $269,913, none of which is long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
6. Capital Share Transactions
7. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Adaptive Global Allocation Fund
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Multi-Asset U.S. Equity Funds
U.S. Equity Funds
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Multi-Asset U.S. Equity Funds
U.S. Equity Funds
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
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| | | ANNUAL REPORT June 30, 2021 |
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| | Janus Henderson Developed World Bond Fund |
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| | Janus Investment Fund |
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| | | |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Developed World Bond Fund
Janus Henderson Developed World Bond Fund (unaudited)
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FUND SNAPSHOT The Janus Henderson Developed World Bond Fund is a developed market fixed income fund seeking total return through current income and capital appreciation. The Fund makes strategic asset allocation decisions between countries, fixed income asset classes, sectors and credit ratings. We believe that outside of the bond’s coupon, asset allocation is the primary driver of returns. Specifically, we actively manage the Fund’s duration position and credit exposure based on where we believe we are in the economic cycle. The Fund’s flexibility allows it to source return from a wide range of global fixed income securities. In addition, by style, we favor sensible income from large, non-cyclical businesses that are likely to continue paying their coupons in the years to come. | | | | 
John Pattullo co-portfolio manager | 
Jenna Barnard co-portfolio manager |
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PERFORMANCE
For the 12-month period ended June 30, 2021, the Janus Henderson Developed World Bond Fund Class I shares returned 4.46%. The Fund’s benchmark, the Bloomberg Barclays Global Aggregate Credit Index (USD Hedged), returned 3.11%.
INVESTMENT ENVIRONMENT
The beginning of the period saw credit spreads (the difference in yield between U.S. Treasuries and other bond issuances) at cycle highs, a result that ensued from what could be described as a COVID- and liquidity-induced “crash” in corporate bond markets that occurred during March 2020. Subsequently over the reporting period, credit spreads compressed such that by period end they were tighter than pre-pandemic levels and at historically tight levels.
Toward period end the bond market showed a powerful anti-reflation reaction, seen in a sharp flattening of the yield curve and a collapse in breakeven inflation rates. The reaction was in response to a modest move in the Federal Reserve’s (Fed) data points for future interest rate hikes, showing two hikes in 2023, and a rather noncommittal press conference by Chairman Jerome Powell to explain the move. As bond managers, we will remember this reaction for years to come. Throughout 2021 so far, the bond market has been resolute that inflation was transitory, as seen by an inverted breakeven inflation curve in the U.S. and the failure of 10-year U.S. breakevens to take out the post-2008 high for inflation expectations. And then, once the Fed signaled that it won’t run the economy “crazy” hot, the reflation trade collapsed upon itself. Such a reaction from bond markets sends a strong message, and from the commentary we have seen, not many people have appeared to be listening: The short-duration mindset has remained overwhelming.
PERFORMANCE DISCUSSION
The addition of significant amounts of credit risk during March 2020 worked very well through the 12-month period, as credit spreads moved from cycle highs to cycle lows. It was as remarkable a recovery in credit markets as it was a sell-off during March 2020, and executing quickly allowed us to reap the benefits over the period. The short duration position via U.S. interest rate futures that we added to the Fund in the summer of 2020 performed well as U.S. Treasury yields rose. However, we did take these futures off too early in 2021 and added duration (interest rate sensitivity) back to the portfolio, particularly in the U.S. This caused us a significant amount of pain in the first quarter of 2021, and U.S. yields peaked on March 30, 2021. This was in line with our cyclical rate of change framework, but yields overshot our targeted levels in the short term
DERIVITAVES USAGE
The Fund makes use of derivatives because they are generally the most efficient and liquid way to gain our desired exposures. The Fund enters into forward foreign currency exchange contracts (“forward currency contracts”) with the obligation to purchase or sell foreign currencies in the future at an agreed-upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
Janus Henderson Developed World Bond Fund (unaudited)
The Fund also uses credit default swaps to manage exposure to a given issuer or sector by either selling contracts to increase exposure (i.e., leverage), buying contracts to reduce exposure or to effectively take a “short” position. In aggregate, these contracts detracted from performance during the period.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
Looking across the rest of the developed world, there is less obviously a reflation trade: Some countries reopened in 2020 and retail sales have already peaked and are coming down, such as in Australia and New Zealand; some will be slower to reopen, such as in Europe and Japan; while in many economies unemployment is set to rise this year as fiscal stimulus in the form of furloughs is removed. The medium-term macro backdrop remains one of interest rate divergence – while the North American economies have live and credible debates about multiple rate hikes, other economies do not.
Janus Henderson Developed World Bond Fund (unaudited)
Fund At A Glance
June 30, 2021
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Fund Profile | | |
30-day Current Yield* | Without
Reimbursement | With
Reimbursement |
Class A Shares NAV | 0.94% | 0.94% |
Class A Shares MOP | 0.89% | 0.89% |
Class C Shares** | 0.13% | 0.13% |
Class D Shares | 1.13% | 1.15% |
Class I Shares | 1.19% | 1.19% |
Class N Shares | 1.18% | 1.18% |
Class S Shares | 0.14% | 0.68% |
Class T Shares | 0.94% | 0.94% |
Weighted Average Maturity | 8.1 Years |
Average Effective Duration*** | 7.7 Years |
* Yield will fluctuate. | | |
** Does not include the 1.00% contingent deferred sales charge. |
*** A theoretical measure of price volatility. | |
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Ratings† Summary - (% of Total Investments) | |
AAA | 11.0% |
AA | 6.7% |
A | 6.0% |
BBB | 25.0% |
BB | 15.5% |
B | 7.8% |
CCC | 0.2% |
Not Rated | 19.8% |
Other | 8.0% |
† Credit ratings provided by Standard & Poor's (S&P), an independent credit rating agency. Credit ratings range from AAA (highest) to D (lowest) based on S&P's measures. Further information on S&P's rating methodology may be found at www.standardandpoors.com. Other rating agencies may rate the same securities differently. Ratings are relative and subjective and are not absolute standards of quality. Credit quality does not remove market risk and is subject to change. "Not Rated" securities are not rated by S&P, but may be rated by other rating agencies and do not necessarily indicate low quality. "Other" includes cash equivalents, equity securities, and certain derivative instruments. |
Significant Areas of Investment - (% of Net Assets)
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Asset Allocation - (% of Net Assets) | |
Corporate Bonds | | 58.9% | |
Foreign Government Bonds | | 24.9% | |
Investment Companies | | 7.6% | |
United States Treasury Notes/Bonds | | 4.6% | |
Bank Loans and Mezzanine Loans | | 2.4% | |
Asset-Backed/Commercial Mortgage-Backed Securities | | 0.4% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.2% | |
Other | | 1.0% |
| | | 100.0% |
Janus Henderson Developed World Bond Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 4.30% | 5.30% | 5.02% | 5.20% | | | 0.95% | 0.83% |
Class A Shares at MOP | | -0.70% | 4.29% | 4.52% | 4.92% | | | | |
Class C Shares at NAV | | 3.57% | 4.52% | 4.24% | 4.40% | | | 1.67% | 1.58% |
Class C Shares at CDSC | | 2.57% | 4.52% | 4.24% | 4.40% | | | | |
Class D Shares | | 4.43% | 5.44% | 5.09% | 5.24% | | | 0.76% | 0.70% |
Class I Shares | | 4.46% | 5.54% | 5.28% | 5.34% | | | 0.69% | 0.58% |
Class N Shares | | 4.47% | 5.59% | 5.19% | 5.30% | | | 0.62% | 0.58% |
Class S Shares | | 3.99% | 5.13% | 4.90% | 5.13% | | | 2.61% | 1.08% |
Class T Shares | | 4.23% | 5.34% | 5.04% | 5.22% | | | 0.85% | 0.83% |
Bloomberg Barclays Global Aggregate Credit Index (USD Hedged) | | 3.11% | 4.46% | 4.83% | 4.75% | | | | |
Morningstar Quartile - Class A Shares | | 1st | 1st | 1st | 1st | | | | |
Morningstar Ranking - based on total returns for World Bond - USD Hedged Funds | | 23/121 | 6/77 | 9/52 | 11/49 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 4.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to through at least October 31, 2021.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs),
Janus Henderson Developed World Bond Fund (unaudited)
Performance
non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson Strategic Income Fund (the “Predecessor Fund”), which merged into the Fund after the close of business on June 2, 2017. The Predecessor Fund was advised by Henderson Global Investors (North America) Inc. and subadvised by Henderson Investment Management Limited. Class A Shares, Class C Shares, Class I Shares, and Class R6 Shares of the Predecessor Fund were reorganized into Class A Shares, Class C Shares, Class I Shares, and Class N Shares, respectively, of the Fund. In connection with this reorganization, certain shareholders of the Predecessor Fund who held shares directly with the Predecessor Fund and not through an intermediary had the Class A Shares, Class C Shares, Class I Shares, and Class N Shares of the Fund received in the reorganization automatically exchanged for Class D Shares of the Fund following the reorganization. Class A Shares and Class C Shares of the Predecessor Fund commenced operations with the Predecessor Fund’s inception on September 30, 2003. Class I Shares and Class R6 Shares of the Predecessor Fund commenced operations on April 29, 2011 and November 30, 2015, respectively. Class D Shares, Class S Shares, and Class T Shares commenced operations on June 5, 2017.
Performance of Class A Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class C Shares shown for periods prior to June 5, 2017, reflects the performance of Class C Shares of the Predecessor Fund, calculated using the fees and expenses of Class C Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class D Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class I Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the fees and expenses of Class I Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to April 29, 2011, performance for Class I Shares reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class N Shares shown for periods prior to June 5, 2017, reflects the performance of Class R6 Shares of the Predecessor Fund, calculated using the fees and expenses of Class R6 Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to November 30, 2015, performance for Class N Shares reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class S Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class T Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Predecessor Fund’s inception date – September 30, 2003
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Developed World Bond Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $992.50 | $4.05 | | $1,000.00 | $1,020.73 | $4.11 | 0.82% |
Class C Shares | $1,000.00 | $988.80 | $7.54 | | $1,000.00 | $1,017.21 | $7.65 | 1.53% |
Class D Shares | $1,000.00 | $992.10 | $3.31 | | $1,000.00 | $1,021.47 | $3.36 | 0.67% |
Class I Shares | $1,000.00 | $992.70 | $2.82 | | $1,000.00 | $1,021.97 | $2.86 | 0.57% |
Class N Shares | $1,000.00 | $992.80 | $2.72 | | $1,000.00 | $1,022.07 | $2.76 | 0.55% |
Class S Shares | $1,000.00 | $990.50 | $4.98 | | $1,000.00 | $1,019.79 | $5.06 | 1.01% |
Class T Shares | $1,000.00 | $991.60 | $3.85 | | $1,000.00 | $1,020.93 | $3.91 | 0.78% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Developed World Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– 0.4% | | | |
| | Tesco Property Finance 3 PLC, 5.7440%, 4/13/40((cost $10,695,222) | | 5,771,219 | GBP | | $10,677,530 | |
Bank Loans and Mezzanine Loans– 2.4% | | | |
Communications – 0.3% | | | |
| | Lorca Finco PLC, | | | | | | |
| | Euro Interbank Offered Rate 3 Month + 4.2500%, 4.2500%, 9/17/27‡ | | 3,000,000 | EUR | | 3,557,709 | |
| | Ziggo BV, Euro Interbank Offered Rate 3 Month + 3.0000%, 3.0000%, 1/31/29‡ | | 3,000,000 | EUR | | 3,526,018 | |
| | | 7,083,727 | |
Consumer Cyclical – 0.8% | | | |
| | Loire Finco Luxembourg, | | | | | | |
| | Euro Interbank Offered Rate 3 Month + 2.7500%, 2.7500%, 4/21/27‡ | | 2,850,000 | EUR | | 3,334,444 | |
| | Loire Finco Luxembourg, ICE LIBOR USD 1 Month + 3.0000%, 3.1043%, 4/21/27‡ | | $4,791,781 | | | 4,707,925 | |
| | Loire Finco Luxembourg, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.7500%, 4.5000%, 4/21/27ƒ,‡ | | 2,959,747 | | | 2,943,764 | |
| | Stars Group Holdings BV, | | | | | | |
| | Euro Interbank Offered Rate 3 Month + 3.7500%, 3.7500%, 7/10/25ƒ,‡ | | 7,900,000 | EUR | | 9,375,098 | |
| | | 20,361,231 | |
Consumer Non-Cyclical – 0.6% | | | |
| | CAB SELAS, Euro Interbank Offered Rate 3 Month + 3.5000%, 3.5000%, 2/9/28‡ | | 3,330,000 | EUR | | 3,923,395 | |
| | IVC Acquisition Ltd, | | | | | | |
| | Sterling Overnight Index Average + 4.5000%, 4.5479%, 2/13/26ƒ,‡ | | 5,280,000 | GBP | | 7,301,489 | |
| | Refresco Holding BV, | | | | | | |
| | Euro Interbank Offered Rate 3 Month + 3.0000%, 3.0000%, 3/28/25‡ | | 3,000,000 | EUR | | 3,530,962 | |
| | | 14,755,846 | |
Technology – 0.7% | | | |
| | Acuris Finance US Inc, ICE LIBOR USD 1 Month + 4.0000%, 4.5000%, 2/16/28ƒ,‡ | | 2,568,177 | | | 2,574,598 | |
| | I-Logic Technologies Bidco Ltd, | | | | | | |
| | Euro Interbank Offered Rate 3 Month + 4.0000%, 4.0000%, 2/16/28‡ | | 5,935,125 | EUR | | 7,046,505 | |
| | McAfee LLC, | | | | | | |
| | Euro Interbank Offered Rate 3 Month + 3.5000%, 3.5000%, 9/30/24‡ | | 2,446,340 | EUR | | 2,907,438 | |
| | McAfee LLC, ICE LIBOR USD 1 Month + 3.7500%, 3.9336%, 9/30/24‡ | | 1,886,137 | | | 1,891,048 | |
| | RealPage Inc, ICE LIBOR USD 1 Month + 3.2500%, 3.7500%, 4/24/28‡ | | 4,885,094 | | | 4,867,996 | |
| | | 19,287,585 | |
Total Bank Loans and Mezzanine Loans (cost $60,904,271) | | 61,488,389 | |
Corporate Bonds– 58.9% | | | |
Banking – 6.7% | | | |
| | Bank of America Corp, | | | | | | |
| | Canada Bankers Acceptances 3 Month + 1.2020%, 3.4070%, 9/20/25‡ | | 2,500,000 | CAD | | 2,140,350 | |
| | Bank of America Corp, | | | | | | |
| | Euro Interbank Offered Rate 3 Month + 3.6700%, 3.6480%, 3/31/29‡ | | 8,000,000 | EUR | | 11,453,506 | |
| | Barclays Bank PLC, ICE LIBOR USD 3 Month + 1.5500%, 6.2780%‡,µ | | 9,780,000 | | | 13,166,325 | |
| | Barclays PLC, USD SWAP SEMI 30/360 5YR + 4.8420%, 7.7500%‡,µ | | 1,500,000 | | | 1,648,125 | |
| | BNP Paribas SA, 1.8750%, 12/14/27 | | 7,000,000 | GBP | | 9,871,703 | |
| | Cooperatieve Rabobank UA/Australia, 4.2500%, 5/12/26 | | 2,000,000 | AUD | | 1,701,057 | |
| | Cooperatieve Radobank UA, EUR SWAP ANNUAL 5 YR + 3.7020%, 3.2500%‡,µ | | 6,600,000 | EUR | | 8,089,098 | |
| | Goldman Sachs Group Inc, 4.0000%, 5/2/24 | | 5,270,000 | AUD | | 4,273,843 | |
| | ING Groep NV, US Treasury Yield Curve Rate 5 Year + 4.3420%, 5.7500%‡,µ | | 1,916,000 | | | 2,122,162 | |
| | JPMorgan Chase & Co, 4.5000%, 1/30/26 | | 6,950,000 | AUD | | 5,901,269 | |
| | Lloyds Banking Group PLC, 4.0000%, 3/7/25 | | 4,400,000 | AUD | | 3,598,711 | |
| | Lloyds Banking Group PLC, 1.8750%, 1/15/26 | | 6,000,000 | GBP | | 8,497,658 | |
| | Lloyds Banking Group PLC, 4.2500%, 11/22/27 | | 2,190,000 | AUD | | 1,842,517 | |
| | Lloyds Banking Group PLC, 4.3750%, 3/22/28 | | 3,000,000 | | | 3,445,330 | |
| | Lloyds Banking Group PLC, | | | | | | |
| | UK Govt Bonds 5 Year Note Generic Bid Yield + 2.4000%, 2.7070%, 12/3/35‡ | | 1,508,000 | GBP | | 2,132,466 | |
| | Lloyds Banking Group PLC, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.2700%, 6.6570% (144A)‡,µ | | 5,486,000 | | | 7,676,313 | |
| | Lloyds Banking Group PLC, USD SWAP SEMI 30/360 5YR + 4.7600%, 7.5000%‡,µ | | 2,000,000 | | | 2,275,000 | |
| | Lloyds Banking Group PLC, USD SWAP SEMI 30/360 5YR + 4.4960%, 7.5000%‡,µ | | 4,500,000 | | | 5,265,000 | |
| | Nationwide Building Society, 4.0000%, 9/14/26 (144A) | | 9,850,000 | | | 10,857,654 | |
| | Nationwide Building Society, 10.2500%‡,µ | | 850,000 | GBP | | 2,186,692 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Developed World Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Banking– (continued) | | | |
| | Natwest Group PLC, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 5.6250%, 6.0000%‡,µ | | $970,000 | | | $1,081,143 | |
| | Royal Bank of Scotland Group PLC, 6.0000%, 12/19/23 | | 3,500,000 | | | 3,925,729 | |
| | Royal Bank of Scotland Group PLC, 5.1250%, 5/28/24 | | 2,600,000 | | | 2,887,356 | |
| | Royal Bank of Scotland Group PLC, | | | | | | |
| | UK Govt Bonds 5 Year Note Generic Bid Yield + 3.5500%, 3.6220%, 8/14/30‡ | | 11,700,000 | GBP | | 17,258,645 | |
| | Stichting AK Rabobank Certificaten, 2.1880%‡,µ | | 10,627,200 | EUR | | 16,954,129 | |
| | UBS Group AG, USD SWAP SA (VS 6M) 5Y + 4.8660%, 7.0000%‡,µ | | 3,730,000 | | | 4,298,825 | |
| | Wells Fargo & Co, 3.7000%, 7/27/26 | | 6,000,000 | AUD | | 4,919,569 | |
| | Wells Fargo & Co, 4.0000%, 4/27/27 | | 11,000,000 | AUD | | 9,156,867 | |
| | | 168,627,042 | |
Basic Industry – 2.4% | | | |
| | Argentum Netherlands BV for Givaudan SA, 2.0000%, 9/17/30 | | 3,600,000 | EUR | | 4,872,175 | |
| | Firmenich Productions SAS, 1.7500%, 4/30/30 | | 15,030,000 | EUR | | 19,619,955 | |
| | Givaudan Finance Europe BV, 1.6250%, 4/22/32 | | 7,330,000 | EUR | | 9,643,393 | |
| | International Flavors & Fragrances Inc, 1.8000%, 9/25/26 | | 390,000 | EUR | | 497,596 | |
| | International Flavors & Fragrances Inc, 4.4500%, 9/26/28 | | 1,212,000 | | | 1,401,370 | |
| | International Flavors & Fragrances Inc, 2.3000%, 11/1/30 (144A) | | 14,284,000 | | | 14,203,381 | |
| | Smurfit Kappa Treasury ULC, 1.5000%, 9/15/27 | | 3,670,000 | EUR | | 4,602,327 | |
| | Symrise AG, 1.3750%, 7/1/27 | | 4,000,000 | EUR | | 4,989,602 | |
| | | 59,829,799 | |
Brokerage – 0.5% | | | |
| | Intercontinental Exchange Inc, 1.8500%, 9/15/32 | | 7,797,000 | | | 7,409,056 | |
| | LSEGA Financing PLC, 1.3750%, 4/6/26 (144A) | | 5,000,000 | | | 5,008,216 | |
| | | 12,417,272 | |
Capital Goods – 1.7% | | | |
| | Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc, 2.1250%, 8/15/26 | | 1,500,000 | EUR | | 1,777,884 | |
| | Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc, | | | | | | |
| | 5.2500%, 8/15/27 (144A) | | 9,208,000 | | | 9,392,160 | |
| | Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc, | | | | | | |
| | 5.2500%, 8/15/27 (144A) | | 2,889,000 | | | 2,946,780 | |
| | Ball Corp, 4.8750%, 3/15/26 | | 1,730,000 | | | 1,926,804 | |
| | Ball Corp, 2.8750%, 8/15/30 | | 19,689,000 | | | 19,327,116 | |
| | Vertical Midco GmbH, 4.3750%, 7/15/27 (144A) | | 3,500,000 | EUR | | 4,333,493 | |
| | Vertical US Newco Inc, 5.2500%, 7/15/27 (144A) | | 2,492,000 | | | 2,625,945 | |
| | | 42,330,182 | |
Communications – 17.7% | | | |
| | Activision Blizzard Inc, 1.3500%, 9/15/30 | | 2,011,000 | | | 1,880,358 | |
| | American Tower Corp, 3.6000%, 1/15/28 | | 7,580,000 | | | 8,337,169 | |
| | American Tower Corp, 3.8000%, 8/15/29 | | 8,686,000 | | | 9,678,116 | |
| | American Tower Corp, 2.9000%, 1/15/30 | | 8,127,000 | | | 8,551,230 | |
| | AT&T Inc, 2.7500%, 6/1/31# | | 14,880,000 | | | 15,467,589 | |
| | Cable One Inc, 4.0000%, 11/15/30 (144A) | | 5,303,000 | | | 5,322,886 | |
| | CCO Holdings LLC / CCO Holdings Capital Corp, 5.3750%, 6/1/29 (144A) | | 3,068,000 | | | 3,353,631 | |
| | CCO Holdings LLC / CCO Holdings Capital Corp, 4.7500%, 3/1/30 (144A) | | 3,159,000 | | | 3,340,643 | |
| | CCO Holdings LLC / CCO Holdings Capital Corp, 4.5000%, 8/15/30 (144A) | | 418,000 | | | 435,227 | |
| | CCO Holdings LLC / CCO Holdings Capital Corp, 4.2500%, 2/1/31 (144A) | | 7,968,000 | | | 8,117,400 | |
| | Cellnex Finance Co SA, 3.8750%, 7/7/41 (144A) | | 3,385,000 | | | 3,372,848 | |
| | Cellnex Telecom SA, 1.8750%, 6/26/29 | | 17,600,000 | EUR | | 21,279,588 | |
| | Charter Communications Operating LLC / Charter Communications Operating | | | | | | |
| | Capital, 4.2000%, 3/15/28 | | 13,160,000 | | | 14,892,887 | |
| | Comcast Corp, 1.5000%, 2/20/29 | | 2,850,000 | GBP | | 3,952,229 | |
| | Comcast Corp, 1.8750%, 2/20/36 | | 2,460,000 | GBP | | 3,359,667 | |
| | Crown Castle International Corp, 3.6500%, 9/1/27 | | 1,883,000 | | | 2,076,183 | |
| | Crown Castle International Corp, 3.8000%, 2/15/28 | | 1,990,000 | | | 2,211,050 | |
| | Crown Castle International Corp, 3.1000%, 11/15/29 | | 5,601,000 | | | 5,942,433 | |
| | Crown Castle International Corp, 3.3000%, 7/1/30 | | 6,929,000 | | | 7,422,992 | |
| | Crown Castle International Corp, 2.2500%, 1/15/31 | | 4,508,000 | | | 4,449,524 | |
| | CSC Holdings LLC, 6.5000%, 2/1/29 (144A) | | 4,527,000 | | | 5,014,105 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Developed World Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Communications– (continued) | | | |
| | CSC Holdings LLC, 4.1250%, 12/1/30 (144A) | | $4,201,000 | | | $4,174,744 | |
| | CSC Holdings LLC, 3.3750%, 2/15/31 (144A) | | 2,243,000 | | | 2,119,433 | |
| | Deutsche Telekom AG, 1.3750%, 7/5/34 | | 7,300,000 | EUR | | 9,219,767 | |
| | Deutsche Telekom International Finance BV, 1.5000%, 4/3/28 | | 2,800,000 | EUR | | 3,600,579 | |
| | Deutsche Telekom International Finance BV, 4.3750%, 6/21/28 (144A) | | 10,600,000 | | | 12,311,086 | |
| | Dolya Holdco, 4.8750%, 7/15/28 (144A) | | 2,180,000 | GBP | | 3,060,400 | |
| | Eircom Finance DAC, 3.5000%, 5/15/26 | | 16,775,000 | EUR | | 20,354,979 | |
| | Eircom Finance DAC, 2.6250%, 2/15/27 | | 4,275,000 | EUR | | 5,036,913 | |
| | Front Range BidCo Inc, 4.0000%, 3/1/27 (144A) | | 7,400,000 | | | 7,349,088 | |
| | Lamar Media Corp, 3.6250%, 1/15/31 (144A) | | 1,541,000 | | | 1,506,328 | |
| | Lorca Telecom Bondco SA, 4.0000%, 9/18/27 (144A) | | 2,790,000 | EUR | | 3,365,730 | |
| | Netflix Inc, 4.8750%, 4/15/28 | | 3,176,000 | | | 3,692,100 | |
| | Netflix Inc, 3.8750%, 11/15/29 | | 2,980,000 | EUR | | 4,252,979 | |
| | Netflix Inc, 3.6250%, 6/15/30 | | 6,030,000 | EUR | | 8,493,260 | |
| | Netflix Inc, 4.8750%, 6/15/30 (144A) | | 2,143,000 | | | 2,548,670 | |
| | Orange SA, 1.0000%, 5/12/25 | | 4,100,000 | EUR | | 5,056,040 | |
| | Orange SA, 2.0000%, 1/15/29 | | 3,100,000 | EUR | | 4,149,873 | |
| | Orange SA, 1.3750%, 1/16/30 | | 5,500,000 | EUR | | 7,089,389 | |
| | Orange SA, 3.2500%, 1/15/32 | | 2,900,000 | GBP | | 4,558,421 | |
| | SBA Communications Corp, 3.1250%, 2/1/29 (144A) | | 5,373,000 | | | 5,179,927 | |
| | Sirius XM Radio Inc, 5.0000%, 8/1/27 (144A) | | 2,106,000 | | | 2,206,562 | |
| | Sirius XM Radio Inc, 4.0000%, 7/15/28 (144A) | | 10,416,000 | | | 10,728,480 | |
| | Sirius XM Radio Inc, 5.5000%, 7/1/29 (144A) | | 6,067,000 | | | 6,611,210 | |
| | Sirius XM Radio Inc, 4.1250%, 7/1/30 (144A) | | 6,171,000 | | | 6,225,798 | |
| | Sky Ltd, 2.5000%, 9/15/26 | | 1,015,000 | EUR | | 1,353,379 | |
| | T-Mobile USA Inc, 4.7500%, 2/1/28 | | 933,000 | | | 999,476 | |
| | T-Mobile USA Inc, 2.6250%, 2/15/29 | | 1,794,000 | | | 1,771,575 | |
| | T-Mobile USA Inc, 3.8750%, 4/15/30 | | 9,017,000 | | | 10,079,383 | |
| | T-Mobile USA Inc, 4.3750%, 4/15/40 | | 7,850,000 | | | 9,202,555 | |
| | T-Mobile USA Inc, 3.0000%, 2/15/41 | | 3,326,000 | | | 3,284,990 | |
| | Vantage Towers AG, 0.3750%, 3/31/27 | | 4,000,000 | EUR | | 4,733,046 | |
| | Vantage Towers AG, 0.7500%, 3/31/30 | | 7,100,000 | EUR | | 8,397,268 | |
| | Verizon Communications Inc, 4.5000%, 8/17/27 | | 12,840,000 | AUD | | 10,962,019 | |
| | Verizon Communications Inc, 2.3500%, 3/23/28 | | 5,000,000 | AUD | | 3,752,799 | |
| | Verizon Communications Inc, 4.0160%, 12/3/29 | | 3,420,000 | | | 3,921,434 | |
| | Verizon Communications Inc, 2.6500%, 5/6/30 | | 10,200,000 | AUD | | 7,564,983 | |
| | Verizon Communications Inc, 2.5500%, 3/21/31 | | 6,167,000 | | | 6,303,445 | |
| | Virgin Media Finance PLC, 5.0000%, 7/15/30 (144A) | | 3,109,000 | | | 3,140,992 | |
| | Virgin Media Secured Finance PLC, 5.2500%, 5/15/29 | | 7,229,000 | GBP | | 10,543,496 | |
| | Virgin Media Secured Finance PLC, 4.1250%, 8/15/30 (144A) | | 2,500,000 | GBP | | 3,423,742 | |
| | Virgin Media Vendor Financing Notes III DAC, 4.8750%, 7/15/28 | | 7,960,000 | GBP | | 11,174,673 | |
| | VMED O2 UK Financing I PLC, 4.0000%, 1/31/29 (144A) | | 5,550,000 | GBP | | 7,584,788 | |
| | Vodafone Group PLC, 3.2500%, 12/13/22 | | 3,600,000 | AUD | | 2,798,966 | |
| | Vodafone Group PLC, 4.3750%, 5/30/28 | | 20,300,000 | | | 23,614,387 | |
| | Vodafone Group PLC, 1.6000%, 7/29/31 | | 1,500,000 | EUR | | 1,930,930 | |
| | WMG Acquisition Corp, 2.7500%, 7/15/28 (144A) | | 4,310,000 | EUR | | 5,229,283 | |
| | WMG Acquisition Corp, 3.8750%, 7/15/30 (144A) | | 1,990,000 | | | 2,009,701 | |
| | WMG Acquisition Corp, 3.0000%, 2/15/31 (144A) | | 6,923,000 | | | 6,559,266 | |
| | Ziggo BV, 4.8750%, 1/15/30 (144A) | | 8,200,000 | | | 8,405,000 | |
| | Ziggo BV, 3.3750%, 2/28/30 | | 6,800,000 | EUR | | 7,945,225 | |
| | | 448,036,312 | |
Consumer Cyclical – 7.3% | | | |
| | 1011778 BC ULC / New Red Finance Inc, 4.0000%, 10/15/30 (144A) | | 5,778,000 | | | 5,590,215 | |
| | Amazon.com Inc, 2.1000%, 5/12/31 | | 16,760,000 | | | 17,041,799 | |
| | Arches Buyer Inc, 4.2500%, 6/1/28 (144A) | | 8,224,000 | | | 8,131,480 | |
| | Arches Buyer Inc, 6.1250%, 12/1/28 (144A) | | 1,652,000 | | | 1,701,560 | |
| | Atlas LuxCo 4 SARL / Allied Universal Holdco LLC / Allied Universal Finance Corp, | | | | | | |
| | 4.6250%, 6/1/28 (144A) | | 2,386,000 | | | 2,387,869 | |
| | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Developed World Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Consumer Cyclical– (continued) | | | |
| | Atlas LuxCo 4 SARL / Allied Universal Holdco LLC / Allied Universal Finance Corp, | | | | | | |
| | 4.6250%, 6/1/28 (144A) | | $1,582,000 | | | $1,587,711 | |
| | Compass Group PLC, 2.0000%, 7/3/29 | | 5,100,000 | GBP | | 7,423,339 | |
| | Co-Operative Group Holdings 2011 Ltd, 7.5000%, 7/8/26Ç | | 2,800,000 | GBP | | 4,646,368 | |
| | Co-Operative Group Ltd, 5.1250%, 5/17/24 | | 5,900,000 | GBP | | 8,676,471 | |
| | CPUK Finance Ltd, 4.8750%, 8/28/25 | | 5,810,000 | GBP | | 8,131,316 | |
| | CPUK Finance Ltd, 6.5000%, 8/28/26 | | 2,830,000 | GBP | | 4,144,151 | |
| | Experian Finance PLC, 4.2500%, 2/1/29 (144A) | | 8,562,000 | | | 9,716,109 | |
| | Experian Finance PLC, 2.7500%, 3/8/30 (144A) | | 9,263,000 | | | 9,573,162 | |
| | Experian Finance PLC, 3.2500%, 4/7/32 | | 830,000 | GBP | | 1,304,604 | |
| | GLP Capital LP / GLP Financing II Inc, 5.7500%, 6/1/28 | | 1,482,000 | | | 1,763,370 | |
| | IHS Markit Ltd, 4.7500%, 2/15/25 (144A) | | 3,880,000 | | | 4,343,660 | |
| | IHS Markit Ltd, 4.0000%, 3/1/26 (144A) | | 1,439,000 | | | 1,595,132 | |
| | Levi Strauss & Co, 5.0000%, 5/1/25 | | 1,554,000 | | | 1,585,080 | |
| | Levi Strauss & Co, 3.5000%, 3/1/31 (144A) | | 4,792,000 | | | 4,764,206 | |
| | McDonald's Corp, 3.4500%, 9/8/26 | | 9,200,000 | AUD | | 7,501,759 | |
| | NIKE Inc, 3.3750%, 3/27/50 | | 972,000 | | | 1,094,313 | |
| | Service Corp International/US, 4.6250%, 12/15/27 | | 6,882,000 | | | 7,277,715 | |
| | Service Corp International/US, 5.1250%, 6/1/29 | | 1,994,000 | | | 2,163,490 | |
| | Service Corp International/US, 3.3750%, 8/15/30 | | 4,333,000 | | | 4,245,473 | |
| | Service Corporation International, 4.0000%, 5/15/31 | | 6,752,000 | | | 6,891,598 | |
| | Sodexo SA, 0.7500%, 4/14/27 | | 380,000 | EUR | | 467,126 | |
| | Sodexo SA, 1.7500%, 6/26/28 | | 6,400,000 | GBP | | 9,024,052 | |
| | Sodexo SA, 1.0000%, 4/27/29 | | 5,300,000 | EUR | | 6,594,772 | |
| | Stars Group Holdings BV / Stars Group US Co-Borrower LLC, | | | | | | |
| | 7.0000%, 7/15/26 (144A) | | 10,700,000 | | | 11,074,928 | |
| | Tesco Corporate Treasury Services, 2.7500%, 4/27/30 | | 3,200,000 | GBP | | 4,723,170 | |
| | Verisure Holding AB, 3.8750%, 7/15/26 (144A) | | 4,760,000 | EUR | | 5,766,573 | |
| | Verisure Holding AB, 3.2500%, 2/15/27 (144A) | | 2,490,000 | EUR | | 2,952,692 | |
| | Verisure Midholding AB, 5.2500%, 2/15/29 (144A) | | 3,345,000 | EUR | | 4,074,916 | |
| | VICI Properties LP / VICI Note Co Inc, 3.7500%, 2/15/27 (144A) | | 707,000 | | | 719,104 | |
| | Walmart Inc, 3.7000%, 6/26/28 | | 6,620,000 | | | 7,535,836 | |
| | | 186,215,119 | |
Consumer Non-Cyclical – 9.9% | | | |
| | Anheuser-Busch InBev Worldwide Inc, 4.1000%, 9/6/27 | | 2,840,000 | AUD | | 2,410,676 | |
| | Anheuser-Busch InBev Worldwide Inc, 3.5000%, 6/1/30 | | 3,680,000 | | | 4,093,579 | |
| | Aramark Services Inc, 5.0000%, 4/1/25 (144A) | | 445,000 | | | 456,125 | |
| | Aramark Services Inc, 5.0000%, 2/1/28 (144A) | | 3,000,000 | | | 3,141,600 | |
| | Avantor Funding Inc, 3.8750%, 7/15/28 (144A) | | 4,590,000 | EUR | | 5,734,243 | |
| | Avantor Funding Inc, 4.6250%, 7/15/28 (144A) | | 6,659,000 | | | 7,030,372 | |
| | Bacardi Ltd, 4.4500%, 5/15/25 (144A) | | 3,873,000 | | | 4,304,595 | |
| | Bacardi Ltd, 4.7000%, 5/15/28 (144A) | | 4,806,000 | | | 5,591,217 | |
| | CAB SELAS, 3.3750%, 2/1/28 (144A) | | 2,060,000 | EUR | | 2,430,138 | |
| | Catalent Pharma Solutions Inc, 3.1250%, 2/15/29 (144A) | | 4,016,000 | | | 3,889,014 | |
| | Coca-Cola Co, 3.2500%, 6/11/24 | | 4,990,000 | AUD | | 3,998,511 | |
| | Coca-Cola Co, 2.1250%, 9/6/29 | | 5,330,000 | | | 5,499,334 | |
| | Constellation Brands Inc, 3.5000%, 5/9/27 | | 4,000,000 | | | 4,402,053 | |
| | Constellation Brands Inc, 3.1500%, 8/1/29 | | 13,870,000 | | | 14,874,190 | |
| | Constellation Brands Inc, 2.8750%, 5/1/30 | | 2,382,000 | | | 2,497,892 | |
| | DaVita Inc, 4.6250%, 6/1/30 (144A) | | 3,808,000 | | | 3,915,462 | |
| | Diageo Capital PLC, 1.3750%, 9/29/25 | | 5,000,000 | | | 5,081,970 | |
| | Diageo Capital PLC, 2.0000%, 4/29/30 | | 1,709,000 | | | 1,710,197 | |
| | Diageo Finance PLC, 1.7500%, 10/12/26 | | 6,600,000 | GBP | | 9,485,575 | |
| | Elanco Animal Health Inc, 5.9000%, 8/28/28 | | 7,370,000 | | | 8,624,890 | |
| | Grifols SA, 2.2500%, 11/15/27 | | 8,310,000 | EUR | | 10,024,533 | |
| | HCA Inc, 5.0000%, 3/15/24 | | 67,000 | | | 74,030 | |
| | HCA Inc, 5.2500%, 6/15/26 | | 1,585,000 | | | 1,834,732 | |
| | HCA Inc, 4.1250%, 6/15/29 | | 9,349,000 | | | 10,527,687 | |
| | HCA Inc, 3.5000%, 9/1/30 | | 1,690,000 | | | 1,800,475 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson Developed World Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Consumer Non-Cyclical– (continued) | | | |
| | HCA Inc, 5.1250%, 6/15/39 | | $5,610,000 | | | $7,007,602 | |
| | Heineken NV, 3.5000%, 1/29/28 (144A) | | 2,320,000 | | | 2,564,379 | |
| | Heineken NV, 1.5000%, 10/3/29 | | 2,650,000 | EUR | | 3,424,393 | |
| | Heineken NV, 2.2500%, 3/30/30 | | 1,800,000 | EUR | | 2,468,906 | |
| | Heineken NV, 2.0200%, 5/12/32 | | 2,800,000 | EUR | | 3,799,734 | |
| | Hologic Inc, 3.2500%, 2/15/29 (144A) | | 9,236,000 | | | 9,155,185 | |
| | IQVIA Inc, 5.0000%, 5/15/27 (144A) | | 4,897,000 | | | 5,129,608 | |
| | Keurig Dr Pepper Inc, 4.5970%, 5/25/28 | | 3,580,000 | | | 4,203,279 | |
| | Keurig Dr Pepper Inc, 3.2000%, 5/1/30 | | 929,000 | | | 1,004,180 | |
| | Kimberly-Clark Corp, 3.1000%, 3/26/30 | | 1,737,000 | | | 1,920,039 | |
| | LVMH Moet Hennessy Louis Vuitton SE, 0.7500%, 5/26/24 | | 5,000,000 | EUR | | 6,088,150 | |
| | McCormick & Co Inc/MD, 3.4000%, 8/15/27 | | 6,433,000 | | | 7,093,707 | |
| | Mondelez International Inc, 2.7500%, 4/13/30 | | 666,000 | | | 701,525 | |
| | Nestle Finance International Ltd, 2.2500%, 11/30/23 | | 6,600,000 | GBP | | 9,553,436 | |
| | Nestle Holdings Inc, 3.9000%, 9/24/38 (144A) | | 13,745,000 | | | 16,382,554 | |
| | PepsiCo Inc, 2.6250%, 7/29/29 | | 2,695,000 | | | 2,888,398 | |
| | Sunshine Mid BV, 6.5000%, 5/15/26 | | 2,490,000 | EUR | | 3,052,534 | |
| | Sysco Corp, 3.5500%, 3/15/25 | | 3,088,000 | | | 3,357,349 | |
| | Tesco PLC, 6.1500%, 11/15/37 (144A) | | 9,601,000 | | | 12,762,874 | |
| | Thermo Fisher Scientific Inc, 4.4970%, 3/25/30 | | 1,368,000 | | | 1,628,902 | |
| | Thermo Fisher Scientific Inc, 2.3750%, 4/15/32 | | 1,600,000 | EUR | | 2,210,639 | |
| | Unilever PLC, 1.5000%, 7/22/26 | | 3,700,000 | GBP | | 5,299,678 | |
| | Upjohn Inc, 2.7000%, 6/22/30 (144A) | | 6,345,000 | | | 6,415,949 | |
| | Wm Morrison Supermarkets PLC, 3.5000%, 7/27/26 | | 1,257,000 | GBP | | 1,811,571 | |
| | Zoetis Inc, 3.9000%, 8/20/28 | | 2,450,000 | | | 2,785,551 | |
| | Zoetis Inc, 2.0000%, 5/15/30 | | 4,547,000 | | | 4,525,995 | |
| | | 250,669,207 | |
Government Sponsored – 1.4% | | | |
| | Kreditanstalt fuer Wiederaufbau, 3.2000%, 9/11/26 | | 30,000,000 | AUD | | 24,909,814 | |
| | Kreditanstalt fuer Wiederaufbau, 3.2000%, 3/15/28 | | 13,660,000 | AUD | | 11,432,982 | |
| | | 36,342,796 | |
Insurance – 2.9% | | | |
| | Anthem Inc, 2.2500%, 5/15/30 | | 2,905,000 | | | 2,929,983 | |
| | Aviva PLC, | | | | | | |
| | UK Govt Bonds 5 Year Note Generic Bid Yield + 4.7000%, 4.0000%, 6/3/55‡ | | 2,320,000 | GBP | | 3,571,198 | |
| | AXA SA, ICE LIBOR GBP 3 Month + 3.2700%, 5.6250%, 1/16/54‡ | | 1,530,000 | GBP | | 2,692,852 | |
| | BUPA Finance PLC, 5.0000%, 12/8/26 | | 8,200,000 | GBP | | 13,240,066 | |
| | BUPA Finance PLC, 4.1250%, 6/14/35 | | 13,150,000 | GBP | | 20,387,965 | |
| | Centene Corp, 3.0000%, 10/15/30 | | 3,876,000 | | | 3,981,737 | |
| | Centene Corp, 2.5000%, 3/1/31 | | 14,398,000 | | | 14,200,027 | |
| | Legal & General Group PLC, | | | | | | |
| | UK Govt Bonds 5 Year Note Generic Bid Yield + 5.2500%, 4.5000%, 11/1/50‡ | | 920,000 | GBP | | 1,462,254 | |
| | Phoenix Group Holdings PLC, 4.1250%, 7/20/22 | | 1,600,000 | GBP | | 2,288,119 | |
| | Phoenix Group Holdings PLC, 6.6250%, 12/18/25 | | 2,412,000 | GBP | | 4,027,978 | |
| | Scottish Widows Ltd, 5.5000%, 6/16/23 | | 2,500,000 | GBP | | 3,753,821 | |
| | Scottish Widows Ltd, 7.0000%, 6/16/43 | | 612,000 | GBP | | 1,274,325 | |
| | | 73,810,325 | |
Real Estate Investment Trusts (REITs) – 0.3% | | | |
| | Digital Intrepid Holdings BV, 0.6250%, 7/15/31 | | 4,710,000 | EUR | | 5,393,228 | |
| | Digital Realty Trust LP, 4.7500%, 10/1/25 | | 1,900,000 | | | 2,159,793 | |
| | | 7,553,021 | |
Supranational – 0.3% | | | |
| | European Investment Bank, 2.7000%, 1/12/23 | | 10,000,000 | AUD | | 7,781,984 | |
Technology – 7.8% | | | |
| | Autodesk Inc, 2.8500%, 1/15/30 | | 10,745,000 | | | 11,337,439 | |
| | Broadcom Inc, 4.1100%, 9/15/28 | | 3,754,000 | | | 4,223,015 | |
| | Broadcom Inc, 4.1500%, 11/15/30 | | 3,810,000 | | | 4,272,591 | |
| | Broadcom Inc, 2.6000%, 2/15/33 (144A) | | 5,235,000 | | | 5,119,143 | |
| | Broadcom Inc, 3.7500%, 2/15/51 (144A) | | 3,754,000 | | | 3,918,834 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Developed World Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Technology– (continued) | | | |
| | Clarivate Science Holdings Corp, 3.8750%, 6/30/28 (144A) | | $6,748,000 | | | $6,809,474 | |
| | CrowdStrike Holdings Inc, 3.0000%, 2/15/29 | | 5,068,000 | | | 5,072,815 | |
| | DELL International LLC / EMC Corp, 6.0200%, 6/15/26 | | 9,310,000 | | | 11,176,901 | |
| | DELL International LLC / EMC Corp, 6.2000%, 7/15/30 | | 2,990,000 | | | 3,844,693 | |
| | Equinix Inc, 3.2000%, 11/18/29 | | 9,789,000 | | | 10,499,725 | |
| | Equinix Inc, 3.0000%, 7/15/50 | | 4,397,000 | | | 4,221,792 | |
| | Experian Finance PLC, 2.1250%, 9/27/24 | | 3,500,000 | GBP | | 5,025,040 | |
| | Fiserv Inc, 2.2500%, 7/1/25 | | 1,310,000 | GBP | | 1,901,289 | |
| | Fiserv Inc, 3.5000%, 7/1/29 | | 6,240,000 | | | 6,866,134 | |
| | Fiserv Inc, 1.6250%, 7/1/30 | | 3,470,000 | EUR | | 4,415,928 | |
| | Gartner Inc, 3.7500%, 10/1/30 (144A) | | 4,237,000 | | | 4,334,917 | |
| | Global Payments Inc, 2.6500%, 2/15/25 | | 2,398,000 | | | 2,526,608 | |
| | Global Payments Inc, 3.2000%, 8/15/29 | | 3,880,000 | | | 4,153,001 | |
| | Global Payments Inc, 2.9000%, 5/15/30 | | 6,188,000 | | | 6,447,062 | |
| | Iron Mountain Inc, 4.8750%, 9/15/27 (144A) | | 3,294,000 | | | 3,414,742 | |
| | Iron Mountain Inc, 5.2500%, 3/15/28 (144A) | | 3,291,000 | | | 3,444,196 | |
| | Iron Mountain Inc, 4.5000%, 2/15/31 (144A) | | 7,531,000 | | | 7,625,138 | |
| | MSCI Inc, 4.0000%, 11/15/29 (144A) | | 2,026,000 | | | 2,137,430 | |
| | MSCI Inc, 3.6250%, 9/1/30 (144A) | | 7,448,000 | | | 7,616,772 | |
| | MSCI Inc, 3.6250%, 11/1/31 (144A) | | 6,702,000 | | | 6,874,241 | |
| | Oracle Corp, 2.9500%, 4/1/30 | | 5,490,000 | | | 5,783,254 | |
| | PayPal Holdings Inc, 2.8500%, 10/1/29 | | 2,440,000 | | | 2,631,451 | |
| | Qorvo Inc, 3.3750%, 4/1/31 (144A) | | 3,305,000 | | | 3,444,537 | |
| | Rackspace Technology Inc, 3.5000%, 2/15/28 (144A) | | 3,256,000 | | | 3,150,180 | |
| | salesforce.com Inc, 3.7000%, 4/11/28 | | 2,252,000 | | | 2,565,403 | |
| | salesforce.com Inc, 1.9500%, 7/15/31 | | 6,764,000 | | | 6,764,924 | |
| | Square Inc, 3.5000%, 6/1/31 (144A) | | 12,826,000 | | | 12,938,227 | |
| | VMware Inc, 3.9000%, 8/21/27 | | 4,698,000 | | | 5,221,087 | |
| | VMware Inc, 4.7000%, 5/15/30 | | 14,565,000 | | | 17,233,582 | |
| | | 197,011,565 | |
Total Corporate Bonds (cost $1,401,063,883) | | 1,490,624,624 | |
Foreign Government Bonds– 24.9% | | | |
| | Australia Government Bond, 2.7500%, 4/21/24 | | 53,129,000 | AUD | | 42,788,151 | |
| | Australia Government Bond, 0.2500%, 11/21/25 | | 27,500,000 | AUD | | 20,251,256 | |
| | Australia Government Bond, 2.2500%, 5/21/28 | | 28,000,000 | AUD | | 22,582,459 | |
| | Australia Government Bond, 3.2500%, 4/21/29 | | 54,000,000 | AUD | | 46,568,402 | |
| | Australia Government Bond, 1.5000%, 6/21/31 | | 28,000,000 | AUD | | 21,006,561 | |
| | Australia Government Bond, 2.7500%, 5/21/41 | | 30,000,000 | AUD | | 24,718,797 | |
| | Australia Government Bond, 1.7500%, 6/21/51 | | 60,000,000 | AUD | | 39,727,310 | |
| | Canadian Government Bond, 1.7500%, 3/1/23 | | 65,000,000 | CAD | | 53,606,120 | |
| | Canadian Government Bond, 0.5000%, 12/1/30 | | 77,000,000 | CAD | | 57,270,070 | |
| | European Investment Bank, 3.2500%, 1/29/24 | | 17,000,000 | | | 18,216,511 | |
| | Federal Republic of Germany Bond, 0%, 2/15/30 | | 30,000,000 | EUR | | 36,618,460 | |
| | Federal Republic of Germany Bond, 0%, 8/15/50 | | 32,000,000 | EUR | | 34,874,029 | |
| | Kingdom of Sweden Government Bond, 0.1250%, 5/12/31 (144A) | | 360,000,000 | SEK | | 41,093,720 | |
| | New Zealand Government Bond, 2.7500%, 4/15/25 | | 33,000,000 | NZD | | 24,614,058 | |
| | New Zealand Government Bond, 0.5000%, 5/15/26 | | 60,000,000 | NZD | | 40,670,291 | |
| | New Zealand Government Bond, 3.0000%, 4/20/29 | | 20,000,000 | NZD | | 15,470,364 | |
| | New Zealand Government Bond, 1.5000%, 5/15/31 | | 33,000,000 | NZD | | 22,484,654 | |
| | United Kingdom Gilt, 0.5000%, 7/22/22 | | 33,000,000 | GBP | | 45,870,278 | |
| | United Kingdom Gilt, 0.1250%, 1/30/26 | | 17,000,000 | GBP | | 23,286,515 | |
Total Foreign Government Bonds (cost $621,688,506) | | 631,718,006 | |
United States Treasury Notes/Bonds– 4.6% | | | |
| | 0.5000%, 2/28/26 | | 92,000,000 | | | 90,605,625 | |
| | 1.6250%, 5/15/31 | | 25,000,000 | | | 25,382,812 | |
Total United States Treasury Notes/Bonds (cost $116,307,960) | | 115,988,437 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Developed World Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Investment Companies– 7.6% | | | |
Money Markets – 7.6% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº,£((cost $192,920,720) | | 192,902,832 | | | $192,922,122 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.2% | | | |
Investment Companies – 0.2% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 3,924,662 | | | 3,924,662 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 0.0500%, 7/1/21 | | $851,708 | | | 851,708 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $4,776,370) | | 4,776,370 | |
Total Investments (total cost $2,408,356,932) – 99.0% | | 2,508,195,478 | |
Cash, Receivables and Other Assets, net of Liabilities – 1.0% | | 24,891,171 | |
Net Assets – 100% | | $2,533,086,649 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $1,130,883,887 | | 45.1 | % |
United Kingdom | | 405,391,040 | | 16.2 | |
Australia | | 217,642,936 | | 8.7 | |
Germany | | 158,046,071 | | 6.3 | |
Canada | | 136,916,431 | | 5.4 | |
New Zealand | | 103,239,367 | | 4.1 | |
Netherlands | | 67,583,597 | | 2.7 | |
France | | 61,945,911 | | 2.5 | |
Sweden | | 53,887,901 | | 2.1 | |
Switzerland | | 47,987,784 | | 1.9 | |
Ireland | | 44,229,292 | | 1.8 | |
Spain | | 38,042,699 | | 1.5 | |
Supranational | | 25,998,495 | | 1.0 | |
Bermuda | | 9,895,812 | | 0.4 | |
Belgium | | 6,504,255 | | 0.3 | |
| | | | | | |
| | | | | | |
Total | | $2,508,195,478 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Developed World Bond Fund
Schedule of Investments
June 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 6/30/21 |
Investment Companies - 7.6% |
Money Markets - 7.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | $ | 136,591 | $ | (1,888) | $ | 1,402 | $ | 192,922,122 |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 5,588∆ | | - | | - | | 3,924,662 |
Total Affiliated Investments - 7.8% | $ | 142,179 | $ | (1,888) | $ | 1,402 | $ | 196,846,784 |
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 7.6% |
Money Markets - 7.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | | - | | 1,154,719,616 | | (961,797,008) | | 192,922,122 |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | - | | 27,223,538 | | (23,298,876) | | 3,924,662 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Developed World Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | |
Schedule of Forward Foreign Currency Exchange Contracts | | | | | | |
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
BNP Paribas: | | | | | | | | |
Australian Dollar | 7/28/21 | 3,029,229 | $ | (2,289,378) | $ | (17,748) | | |
Australian Dollar | 7/28/21 | (444,278,315) | | 342,038,043 | | 8,872,023 | | |
Australian Dollar | 7/28/21 | (2,245,488) | | 1,680,667 | | (3,233) | | |
British Pound | 7/28/21 | 2,067,752 | | (2,873,755) | | (13,649) | | |
British Pound | 7/28/21 | (223,863,731) | | 315,943,100 | | 6,295,782 | | |
British Pound | 7/28/21 | (441,600) | | 609,720 | | (1,099) | | |
Canadian Dollar | 7/28/21 | (132,422,195) | | 108,752,421 | | 1,908,630 | | |
Euro | 7/28/21 | 11,002,102 | | (13,113,236) | | (61,455) | | |
Euro | 7/28/21 | (336,942,876) | | 408,996,154 | | 9,281,184 | | |
New Zealand Dollar | 7/28/21 | (145,778,879) | | 104,082,704 | | 2,220,688 | | |
Swedish Krona | 7/28/21 | (353,331,961) | | 42,407,285 | | 1,095,553 | | |
Total | | | | | $ | 29,576,676 | | |
Schedule of Futures
| | | | | | | | | | | | | | |
Description | | Number of Contracts | | Expiration Date | | Value and Notional Amount | | Unrealized Appreciation/ (Depreciation) | | Variation Margin Asset/(Liability) | | |
Futures Purchased: | | | | | | | | | | | | |
10-Year Australian Bond | | 2,100 | | 9/15/21 | $ | 222,313,190 | $ | 1,808,389 | $ | 178,258 | |
Long Gilt | | 960 | | 9/30/21 | | 170,088,934 | | 1,151,746 | | 185,890 | |
Ultra 10-Year Treasury Note | | 348 | | 9/30/21 | | 51,226,688 | | 705,214 | | 168,563 | |
Total | | | | | | | $ | 3,665,349 | $ | 532,711 | | |
| | | | | | | | | | |
Schedule of Centrally Cleared Credit Default Swaps - Buy Protection |
Reference Asset | Maturity Date | Notional Amount | | | Premiums Paid/(Received) | | Unrealized Appreciation/ (Depreciation) | | Variation Margin Asset/(Liability) |
iTraxx Crossover Index, Fixed Rate 5.00%, Paid Quarterly | 6/20/26 | (41,600,000) | EUR | $ | (6,021,841) | $ | (162,133) | $ | 93,432 |
| | | | | | | | | | |
Schedule of OTC Credit Default Swaps - Buy Protection |
Counterparty/ Reference Asset | Maturity Date | Notional Amount | | | Premiums Paid/(Received) | | Unrealized Appreciation/ (Depreciation) | | Swap Contracts, at Value Asset/(Liability) |
Barclays Capital, Inc:
| | | | | | | | | | |
Renault SA, Fixed Rate 1.00%, Paid Quarterly | 12/20/21 | (3,000,000) | EUR | $ | 10,704 | $ | (16,958) | $ | (6,254) |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Developed World Bond Fund
Schedule of Investments
June 30, 2021
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of June 30, 2021.
| | | | | | | | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of June 30, 2021 |
| | | | | | | | | | | |
| | | | | Credit
Contracts | | Currency
Contracts | | Interest Rate
Contracts | | Total |
Asset Derivatives: | | | | | | | | | |
Forward foreign currency exchange contracts | | | $ - | | $29,673,860 | | $ - | | $29,673,860 |
Variation margin receivable on futures contracts | | | - | | - | | 532,711 | | 532,711 |
Variation margin receivable on swaps | | | 93,432 | | - | | - | | 93,432 |
| | | | | | | | | | |
Total Asset Derivatives | | | $ 93,432 | | $29,673,860 | | $ 532,711 | | $30,300,003 |
Liability Derivatives: | | | | | | | | | |
Forward foreign currency exchange contracts | | | $ - | | $ 97,184 | | $ - | | $ 97,184 |
Outstanding swap contracts, at value | | | 6,254 | | - | | - | | 6,254 |
| | | | | | | | | | |
Total Liability Derivatives | | | $ 6,254 | | $ 97,184 | | $ - | | $ 103,438 |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended June 30, 2021.
| | | | | | | | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended June 30, 2021 |
| | | | | | | | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Credit
Contracts | | Currency
Contracts | | Interest Rate
Contracts | | Total |
Futures contracts | | $ - | | $ - | | $ (3,451,003) | | $ (3,451,003) |
Forward foreign currency exchange contracts | | - | | (91,043,394) | | - | | (91,043,394) |
Purchased options contracts | | - | | - | | (232,899) | | (232,899) |
Swap contracts | | 16,346,744 | | - | | - | | 16,346,744 |
| | | | | | | | | | | |
Total | | $16,346,744 | | $(91,043,394) | | $ (3,683,902) | | $(78,380,552) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Credit
Contracts | | Currency
Contracts | | Interest Rate
Contracts | | Total |
Futures contracts | | $ - | | $ - | | $ 4,736,675 | | $ 4,736,675 |
Forward foreign currency exchange contracts | | - | | 29,822,301 | | - | | 29,822,301 |
Swap contracts | | (6,787,231) | | - | | - | | (6,787,231) |
| | | | | | | | | | | |
Total | | $ (6,787,231) | | $ 29,822,301 | | $ 4,736,675 | | $ 27,771,745 |
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Developed World Bond Fund
Schedule of Investments
June 30, 2021
| | |
Average Ending Monthly Market Value of Derivative Instruments During the Year Ended June 30, 2021 |
| |
| Market Value(a) |
Credit default swaps, sell protection | $ 5,821,720 |
Credit default swaps, buy protection | (467,515) |
Forward foreign currency exchange contracts, purchased | 19,252,960 |
Forward foreign currency exchange contracts, sold | 1,053,798,002 |
Futures contracts, purchased | 148,591,195 |
Futures contracts, sold | 132,723,099 |
Purchased options contracts, call | 15,144 |
| | |
(a) Forward foreign currency exchange contracts are reported as the average ending monthly currency amount purchased or sold. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Developed World Bond Fund
Notes to Schedule of Investments and Other Information
| | |
Bloomberg Barclays Global Aggregate Credit Index (USD Hedged) | Bloomberg Barclays Global Aggregate Credit Index (USD Hedged) measures the credit sector of the global investment grade fixed-rate bond market, including corporate, government and agency securities. |
| | |
ICE | Intercontinental Exchange |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
ULC | Unlimited Liability Company |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the year ended June 30, 2021 is $464,545,093, which represents 18.3% of net assets. |
| | |
ƒ | All or a portion of this position is not funded, or has been purchased on a delayed delivery or when-issued basis. If applicable, interest rates will be determined and interest will begin to accrue at a future date. See Notes to Financial Statements. |
| | |
‡ | Variable or floating rate security. Rate shown is the current rate as of June 30, 2021. Certain variable rate securities are not based on a published reference rate and spread; they are determined by the issuer or agent and current market conditions. Reference rate is as of reset date and may vary by security, which may not indicate a reference rate and/or spread in their description. |
| | |
ºº | Rate shown is the 7-day yield as of June 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at June 30, 2021. |
| | |
µ | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. The date indicated, if any, represents the next call date. |
| | |
Ç | Step bond. The coupon rate will increase or decrease periodically based upon a predetermined schedule. The rate shown reflects the current rate. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Henderson Developed World Bond Fund
Notes to Schedule of Investments and Other Information
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Asset-Backed/Commercial Mortgage-Backed Securities | $ | - | $ | 10,677,530 | $ | - |
Bank Loans and Mezzanine Loans | | - | | 61,488,389 | | - |
Corporate Bonds | | - | | 1,490,624,624 | | - |
Foreign Government Bonds | | - | | 631,718,006 | | - |
United States Treasury Notes/Bonds | | - | | 115,988,437 | | - |
Investment Companies | | - | | 192,922,122 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 4,776,370 | | - |
Total Investments in Securities | $ | - | $ | 2,508,195,478 | $ | - |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 29,673,860 | | - |
Variation Margin Receivable on Futures Contracts | | 532,711 | | - | | - |
Variation Margin Receivable on Swaps | | - | | 93,432 | | - |
Total Assets | $ | 532,711 | $ | 2,537,962,770 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 97,184 | $ | - |
Outstanding Swap Contracts, at Value | | - | | 6,254 | | - |
Total Liabilities | $ | - | $ | 103,438 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Futures, certain written options on futures, and centrally cleared swap contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Written options, written swaptions, and other swap contracts are reported at their market value at measurement date. |
Janus Henderson Developed World Bond Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,211,511,550)(1) | | $ | 2,311,348,694 | |
| Affiliated investments, at value (cost $196,845,382) | | | 196,846,784 | |
| Deposits with brokers for centrally cleared derivatives | | | 1,950,422 | |
| Deposits with brokers for futures | | | 9,909,909 | |
| Forward foreign currency exchange contracts | | | 29,673,860 | |
| Cash denominated in foreign currency (cost $337,806) | | | 337,806 | |
| | Receivable for variation margin on futures contracts | | | 532,711 | |
| Receivable for variation margin on swaps | | | 93,432 | |
| Non-interested Trustees' deferred compensation | | | 61,639 | |
| Receivables: | | | | |
| | Interest | | | 14,971,802 | |
| | Fund shares sold | | | 6,982,178 | |
| | Investments sold | | | 957,554 | |
| | Dividends from affiliates | | | 8,789 | |
| | Foreign tax reclaims | | | 880 | |
| Other assets | | | 2,039,188 | |
Total Assets | | | 2,575,715,648 | |
Liabilities: | | | | |
| Due to custodian | | | 24 | |
| Collateral for securities loaned (Note 3) | | | 4,776,370 | |
| Forward foreign currency exchange contracts | | | 97,184 | |
| Outstanding swap contracts, at value (premium paid $10,704) | | | 6,254 | |
| Payables: | | | — | |
| | Investments purchased | | | 28,387,589 | |
| | Fund shares repurchased | | | 7,556,332 | |
| | Advisory fees | | | 825,964 | |
| | Transfer agent fees and expenses | | | 323,486 | |
| | Dividends | | | 256,604 | |
| | Non-interested Trustees' deferred compensation fees | | | 61,639 | |
| | Professional fees | | | 58,921 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 54,315 | |
| | Custodian fees | | | 25,919 | |
| | Non-interested Trustees' fees and expenses | | | 8,606 | |
| | Affiliated fund administration fees payable | | | 5,063 | |
| | Accrued expenses and other payables | | | 184,729 | |
Total Liabilities | | | 42,628,999 | |
Net Assets | | $ | 2,533,086,649 | |
| | |
See Notes to Financial Statements. |
| |
20 | JUNE 30, 2021 |
Janus Henderson Developed World Bond Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 2,502,967,240 | |
| Total distributable earnings (loss) | | | 30,119,409 | |
Total Net Assets | | $ | 2,533,086,649 | |
Net Assets - Class A Shares | | $ | 116,628,824 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 11,750,783 | |
Net Asset Value Per Share(2) | | $ | 9.93 | |
Maximum Offering Price Per Share(3) | | $ | 10.43 | |
Net Assets - Class C Shares | | $ | 36,918,479 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,747,563 | |
Net Asset Value Per Share(2) | | $ | 9.85 | |
Net Assets - Class D Shares | | $ | 39,211,046 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,952,173 | |
Net Asset Value Per Share | | $ | 9.92 | |
Net Assets - Class I Shares | | $ | 2,151,534,415 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 217,514,416 | |
Net Asset Value Per Share | | $ | 9.89 | |
Net Assets - Class N Shares | | $ | 69,800,416 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 7,053,692 | |
Net Asset Value Per Share | | $ | 9.90 | |
Net Assets - Class S Shares | | $ | 526,794 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 53,135 | |
Net Asset Value Per Share | | $ | 9.91 | |
Net Assets - Class T Shares | | $ | 118,466,675 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 11,950,729 | |
Net Asset Value Per Share | | $ | 9.91 | |
| |
(1) Includes $4,101,822 of securities on loan. See Note 3 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/95.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Developed World Bond Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Interest | $ | 52,137,478 | |
| Dividends from affiliates | | 136,591 | |
| Affiliated securities lending income, net | | 5,588 | |
| Unaffiliated securities lending income, net | | 389 | |
| Other income | | 579,435 | |
Total Investment Income | | 52,859,481 | |
Expenses: | | | |
| Advisory fees | | 10,708,838 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 236,076 | |
| | Class C Shares | | 374,725 | |
| | Class S Shares | | 1,068 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 48,620 | |
| | Class S Shares | | 1,250 | |
| | Class T Shares | | 328,400 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 104,983 | |
| | Class C Shares | | 23,844 | |
| | Class I Shares | | 1,551,147 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 5,858 | |
| | Class C Shares | | 2,028 | |
| | Class D Shares | | 6,279 | |
| | Class I Shares | | 75,002 | |
| | Class N Shares | | 1,660 | |
| | Class S Shares | | 17 | |
| | Class T Shares | | 1,335 | |
| Registration fees | | 258,706 | |
| Shareholder reports expense | | 165,345 | |
| Custodian fees | | 154,348 | |
| Professional fees | | 86,498 | |
| Affiliated fund administration fees | | 59,578 | |
| Non-interested Trustees’ fees and expenses | | 36,095 | |
| Other expenses | | 198,899 | |
Total Expenses | | 14,430,599 | |
Less: Excess Expense Reimbursement and Waivers | | (1,383,413) | |
Net Expenses | | 13,047,186 | |
Net Investment Income/(Loss) | | 39,812,295 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
22 | JUNE 30, 2021 |
Janus Henderson Developed World Bond Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 44,185,876 | |
| Investments in affiliates | | (1,888) | |
| Purchased options contracts | | (232,899) | |
| Forward foreign currency exchange contracts | | (91,043,394) | |
| Futures contracts | | (3,451,003) | |
| Swap contracts | | 16,346,744 | |
Total Net Realized Gain/(Loss) on Investments | | (34,196,564) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 45,682,421 | |
| Investments in affiliates | | 1,402 | |
| Forward foreign currency exchange contracts | | 29,822,301 | |
| Futures contracts | | 4,736,675 | |
| Swap contracts | | (6,787,231) | |
Total Change in Unrealized Net Appreciation/Depreciation | | 73,455,568 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 79,071,299 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Developed World Bond Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 39,812,295 | | $ | 24,084,973 | |
| Net realized gain/(loss) on investments | | (34,196,564) | | | 2,174,368 | |
| Change in unrealized net appreciation/depreciation | | 73,455,568 | | | 43,791,330 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 79,071,299 | | | 70,050,671 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (4,193,238) | | | (2,024,158) | |
| | Class C Shares | | (1,436,555) | | | (995,645) | |
| | Class D Shares | | (2,003,163) | | | (765,327) | |
| | Class I Shares | | (79,060,449) | | | (44,470,595) | |
| | Class N Shares | | (2,330,650) | | | (705,033) | |
| | Class S Shares | | (20,071) | | | (6,868) | |
| | Class T Shares | | (5,896,176) | | | (4,088,674) | |
Net Decrease from Dividends and Distributions to Shareholders | | (94,940,302) | | | (53,056,300) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 58,458,767 | | | 6,448,882 | |
| | Class C Shares | | (605,785) | | | (349,460) | |
| | Class D Shares | | 9,490,073 | | | 13,866,899 | |
| | Class I Shares | | 815,113,216 | | | 383,616,125 | |
| | Class N Shares | | 38,474,230 | | | 26,213,329 | |
| | Class S Shares | | 309,474 | | | 61,348 | |
| | Class T Shares | | 19,659,990 | | | 31,399,317 | |
Net Increase/(Decrease) from Capital Share Transactions | | 940,899,965 | | | 461,256,440 | |
Net Increase/(Decrease) in Net Assets | | 925,030,962 | | | 478,250,811 | |
Net Assets: | | | | | | |
| Beginning of period | | 1,608,055,687 | | | 1,129,804,876 | |
| End of period | $ | 2,533,086,649 | | $ | 1,608,055,687 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
24 | JUNE 30, 2021 |
Janus Henderson Developed World Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $9.94 | | | $9.69 | | | $9.35 | | | $9.46 | | | $9.34 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.17 | | | 0.14 | | | 0.18 | | | 0.21 | | | 0.26 | |
| | Net realized and unrealized gain/(loss) | | 0.26 | | | 0.44 | | | 0.58 | | | (0.12) | | | 0.11 | |
| Total from Investment Operations | | 0.43 | | | 0.58 | | | 0.76 | | | 0.09 | | | 0.37 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.44) | | | (0.30) | | | (0.42) | | | (0.20) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | (0.03) | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | — | | | — | | | (0.13) | |
| Total Dividends and Distributions | | (0.44) | | | (0.33) | | | (0.42) | | | (0.20) | | | (0.25) | |
| Net Asset Value, End of Period | | $9.93 | | | $9.94 | | | $9.69 | | | $9.35 | | | $9.46 | |
| Total Return* | | 4.30% | | | 6.07% | | | 8.48% | | | 0.99% | | | 3.99% | |
| Net Assets, End of Period (in thousands) | | $116,629 | | | $59,079 | | | $51,463 | | | $40,600 | | | $43,047 | |
| Average Net Assets for the Period (in thousands) | | $94,430 | | | $59,858 | | | $43,495 | | | $43,700 | | | $60,131 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.94% | | | 0.99% | | | 0.98% | | | 1.01% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.83% | | | 0.90% | | | 0.99% | | | 0.98% | | | 1.01% | |
| | Ratio of Net Investment Income/(Loss) | | 1.69% | | | 1.45% | | | 1.98% | | | 2.23% | | | 2.99% | |
| Portfolio Turnover Rate | | 37% | | | 88% | | | 42% | | | 125% | | | 112% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $9.87 | | | $9.63 | | | $9.30 | | | $9.41 | | | $9.29 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.10 | | | 0.07 | | | 0.12 | | | 0.14 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | 0.24 | | | 0.43 | | | 0.57 | | | (0.12) | | | 0.11 | |
| Total from Investment Operations | | 0.34 | | | 0.50 | | | 0.69 | | | 0.02 | | | 0.30 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.36) | | | (0.23) | | | (0.36) | | | (0.13) | | | (0.08) | |
| | Distributions (from capital gains) | | — | | | (0.03) | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | — | | | — | | | (0.10) | |
| Total Dividends and Distributions | | (0.36) | | | (0.26) | | | (0.36) | | | (0.13) | | | (0.18) | |
| Net Asset Value, End of Period | | $9.85 | | | $9.87 | | | $9.63 | | | $9.30 | | | $9.41 | |
| Total Return* | | 3.47% | | | 5.26% | | | 7.67% | | | 0.25% | | | 3.31% | |
| Net Assets, End of Period (in thousands) | | $36,918 | | | $37,641 | | | $37,165 | | | $40,085 | | | $39,923 | |
| Average Net Assets for the Period (in thousands) | | $38,596 | | | $37,191 | | | $36,574 | | | $39,996 | | | $46,079 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.60% | | | 1.64% | | | 1.72% | | | 1.72% | | | 1.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.55% | | | 1.62% | | | 1.72% | | | 1.72% | | | 1.77% | |
| | Ratio of Net Investment Income/(Loss) | | 0.99% | | | 0.74% | | | 1.27% | | | 1.48% | | | 2.22% | |
| Portfolio Turnover Rate | | 37% | | | 88% | | | 42% | | | 125% | | | 112% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Developed World Bond Fund
Financial Highlights
| | | | | | | |
Class A Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2016 | |
| Net Asset Value, Beginning of Period | | $9.09 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.25 | |
| | Net realized and unrealized gain/(loss) | | 0.24 | |
| Total from Investment Operations | | 0.49 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.24) | |
| Total Dividends and Distributions | | (0.24) | |
| Net Asset Value, End of Period | | $9.34 | |
| Total Return* | | 5.46% | |
| Net Assets, End of Period (in thousands) | | $66,863 | |
| Average Net Assets for the Period (in thousands) | | $47,477 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.04%(2) | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.04%(2) | |
| | Ratio of Net Investment Income/(Loss) | | 2.72%(3) | |
| Portfolio Turnover Rate | | 110% | |
| | | | | | | |
| | | | | | | |
Class C Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2016 | |
| Net Asset Value, Beginning of Period | | $9.04 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | 0.24 | |
| Total from Investment Operations | | 0.42 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.17) | |
| Total Dividends and Distributions | | (0.17) | |
| Net Asset Value, End of Period | | $9.29 | |
| Total Return* | | 4.70% | |
| Net Assets, End of Period (in thousands) | | $50,531 | |
| Average Net Assets for the Period (in thousands) | | $40,443 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.80%(2) | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.80%(2) | |
| | Ratio of Net Investment Income/(Loss) | | 1.98%(3) | |
| Portfolio Turnover Rate | | 110% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The Ratio of Gross Expenses and Ratio of Net Expenses (After Waivers and Expense Offsets) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses and Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 0.01% higher had the custodian not reimbursed the Fund. (3) The Ratio of Net Investment Income/(Loss) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Investment Income/(Loss) would have been 0.01% lower had the custodian not reimbursed the Fund. |
| | |
See Notes to Financial Statements. |
| |
26 | JUNE 30, 2021 |
Janus Henderson Developed World Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $9.93 | | | $9.69 | | | $9.34 | | | $9.45 | | | $9.49 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.19 | | | 0.16 | | | 0.20 | | | 0.22 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | 0.25 | | | 0.43 | | | 0.59 | | | (0.11) | | | (0.03) | |
| Total from Investment Operations | | 0.44 | | | 0.59 | | | 0.79 | | | 0.11 | | | (0.01) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.45) | | | (0.32) | | | (0.44) | | | (0.22) | | | (0.01) | |
| | Distributions (from capital gains) | | — | | | (0.03) | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | — | | | — | | | (0.02) | |
| Total Dividends and Distributions | | (0.45) | | | (0.35) | | | (0.44) | | | (0.22) | | | (0.03) | |
| Net Asset Value, End of Period | | $9.92 | | | $9.93 | | | $9.69 | | | $9.34 | | | $9.45 | |
| Total Return* | | 4.43% | | | 6.17% | | | 8.78% | | | 1.17% | | | (0.09)% | |
| Net Assets, End of Period (in thousands) | | $39,211 | | | $30,219 | | | $16,056 | | | $8,848 | | | $450 | |
| Average Net Assets for the Period (in thousands) | | $42,506 | | | $21,662 | | | $10,281 | | | $6,302 | | | $270 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.70% | | | 0.75% | | | 0.86% | | | 0.79% | | | 0.90% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.69% | | | 0.73% | | | 0.81% | | | 0.79% | | | 0.89% | |
| | Ratio of Net Investment Income/(Loss) | | 1.86% | | | 1.65% | | | 2.13% | | | 2.39% | | | 3.54% | |
| Portfolio Turnover Rate | | 37% | | | 88% | | | 42% | | | 125% | | | 112% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(3) | |
| Net Asset Value, Beginning of Period | | $9.91 | | | $9.66 | | | $9.32 | | | $9.43 | | | $9.31 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.19 | | | 0.17 | | | 0.21 | | | 0.23 | | | 0.27 | |
| | Net realized and unrealized gain/(loss) | | 0.25 | | | 0.43 | | | 0.58 | | | (0.11) | | | 0.12 | |
| Total from Investment Operations | | 0.44 | | | 0.60 | | | 0.79 | | | 0.12 | | | 0.39 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.46) | | | (0.32) | | | (0.45) | | | (0.23) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | (0.03) | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | — | | | — | | | (0.15) | |
| Total Dividends and Distributions | | (0.46) | | | (0.35) | | | (0.45) | | | (0.23) | | | (0.27) | |
| Net Asset Value, End of Period | | $9.89 | | | $9.91 | | | $9.66 | | | $9.32 | | | $9.43 | |
| Total Return* | | 4.46% | | | 6.36% | | | 8.77% | | | 1.25% | | | 4.26% | |
| Net Assets, End of Period (in thousands) | | $2,151,534 | | | $1,348,740 | | | $948,619 | | | $659,214 | | | $333,853 | |
| Average Net Assets for the Period (in thousands) | | $1,744,298 | | | $1,202,926 | | | $732,591 | | | $496,179 | | | $326,067 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.65% | | | 0.68% | | | 0.74% | | | 0.72% | | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.58% | | | 0.65% | | | 0.74% | | | 0.72% | | | 0.76% | |
| | Ratio of Net Investment Income/(Loss) | | 1.94% | | | 1.71% | | | 2.23% | | | 2.47% | | | 3.21% | |
| Portfolio Turnover Rate | | 37% | | | 88% | | | 42% | | | 125% | | | 112% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through June 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 27 |
Janus Henderson Developed World Bond Fund
Financial Highlights
| | | | | | | |
Class I Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2016 | |
| Net Asset Value, Beginning of Period | | $9.06 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.27 | |
| | Net realized and unrealized gain/(loss) | | 0.23 | |
| Total from Investment Operations | | 0.50 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.25) | |
| Total Dividends and Distributions | | (0.25) | |
| Net Asset Value, End of Period | | $9.31 | |
| Total Return* | | 5.70% | |
| Net Assets, End of Period (in thousands) | | $323,462 | |
| Average Net Assets for the Period (in thousands) | | $227,875 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 0.79%(2) | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79%(2) | |
| | Ratio of Net Investment Income/(Loss) | | 2.96%(3) | |
| Portfolio Turnover Rate | | 110% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The Ratio of Gross Expenses and Ratio of Net Expenses (After Waivers and Expense Offsets) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses and Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 0.01% higher had the custodian not reimbursed the Fund. (3) The Ratio of Net Investment Income/(Loss) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Investment Income/(Loss) would have been 0.01% lower had the custodian not reimbursed the Fund. |
| | |
See Notes to Financial Statements. |
| |
28 | JUNE 30, 2021 |
Janus Henderson Developed World Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $9.91 | | | $9.67 | | | $9.32 | | | $9.44 | | | $9.32 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.19 | | | 0.18 | | | 0.21 | | | 0.23 | | | 0.28 | |
| | Net realized and unrealized gain/(loss) | | 0.26 | | | 0.42 | | | 0.59 | | | (0.12) | | | 0.11 | |
| Total from Investment Operations | | 0.45 | | | 0.60 | | | 0.80 | | | 0.11 | | | 0.39 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.46) | | | (0.33) | | | (0.45) | | | (0.23) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | (0.03) | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | — | | | — | | | (0.15) | |
| Total Dividends and Distributions | | (0.46) | | | (0.36) | | | (0.45) | | | (0.23) | | | (0.27) | |
| Net Asset Value, End of Period | | $9.90 | | | $9.91 | | | $9.67 | | | $9.32 | | | $9.44 | |
| Total Return* | | 4.58% | | | 6.32% | | | 8.94% | | | 1.19% | | | 4.31% | |
| Net Assets, End of Period (in thousands) | | $69,800 | | | $31,829 | | | $5,789 | | | $4,168 | | | $1,340 | |
| Average Net Assets for the Period (in thousands) | | $50,273 | | | $19,208 | | | $5,062 | | | $2,007 | | | $1,434 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.56% | | | 0.61% | | | 0.71% | | | 0.67% | | | 0.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.56% | | | 0.59% | | | 0.67% | | | 0.67% | | | 0.70% | |
| | Ratio of Net Investment Income/(Loss) | | 1.94% | | | 1.82% | | | 2.31% | | | 2.51% | | | 3.25% | |
| Portfolio Turnover Rate | | 37% | | | 88% | | | 42% | | | 125% | | | 112% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(3) | |
| Net Asset Value, Beginning of Period | | | $9.93 | | | $9.69 | | | $9.34 | | | $9.45 | | | $9.49 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | | 0.15 | | | 0.13 | | | 0.18 | | | 0.20 | | | —(4) | |
| | Net realized and unrealized gain/(loss) | | | 0.25 | | | 0.42 | | | 0.59 | | | (0.12) | | | (0.01) | |
| Total from Investment Operations | | | 0.40 | | | 0.55 | | | 0.77 | | | 0.08 | | | (0.01) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | | (0.42) | | | (0.28) | | | (0.42) | | | (0.19) | | | (0.01) | |
| | Distributions (from capital gains) | | | — | | | (0.03) | | | — | | | — | | | — | |
| | Return of capital | | | — | | | — | | | — | | | — | | | (0.02) | |
| Total Dividends and Distributions | | | (0.42) | | | (0.31) | | | (0.42) | | | (0.19) | | | (0.03) | |
| Net Asset Value, End of Period | | | $9.91 | | | $9.93 | | | $9.69 | | | $9.34 | | | $9.45 | |
| Total Return* | | | 3.99% | | | 5.83% | | | 8.51% | | | 0.85% | | | (0.11)% | |
| Net Assets, End of Period (in thousands) | | | $527 | | | $224 | | | $158 | | | $121 | | | $50 | |
| Average Net Assets for the Period (in thousands) | | | $500 | | | $201 | | | $141 | | | $70 | | | $50 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | | 1.62% | | | 2.55% | | | 3.21% | | | 2.19% | | | 1.22% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | | 1.02% | | | 1.06% | | | 1.06% | | | 1.05% | | | 1.22% | |
| | Ratio of Net Investment Income/(Loss) | | | 1.50% | | | 1.31% | | | 1.91% | | | 2.12% | | | (0.55)% | |
| Portfolio Turnover Rate | | | 37% | | | 88% | | | 42% | | | 125% | | | 112% | |
| | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Period from June 5, 2017 (inception date) through June 30, 2017. (4) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 29 |
Janus Henderson Developed World Bond Fund
Financial Highlights
| | | | | | | |
Class N Shares | | | |
For a share outstanding during the period ended July 31 | | 2016(1) | |
| Net Asset Value, Beginning of Period | | $8.99 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 0.32 | |
| Total from Investment Operations | | 0.49 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.16) | |
| Total Dividends and Distributions | | (0.16) | |
| Net Asset Value, End of Period | | $9.32 | |
| Total Return* | | 5.57% | |
| Net Assets, End of Period (in thousands) | | $1,528 | |
| Average Net Assets for the Period (in thousands) | | $1,413 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 0.73%(3) | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.73%(3) | |
| | Ratio of Net Investment Income/(Loss) | | 2.77%(4) | |
| Portfolio Turnover Rate | | 110% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from November 30, 2015 (inception date) through July 31, 2016. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) The Ratio of Gross Expenses and Ratio of Net Expenses (After Waivers and Expense Offsets) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses and Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 0.01% higher had the custodian not reimbursed the Fund. (4) The Ratio of Net Investment Income/(Loss) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Investment Income/(Loss) would have been 0.01% lower had the custodian not reimbursed the Fund. |
| | |
See Notes to Financial Statements. |
| |
30 | JUNE 30, 2021 |
Janus Henderson Developed World Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $9.93 | | | $9.68 | | | $9.34 | | | $9.45 | | | $9.49 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.17 | | | 0.15 | | | 0.19 | | | 0.21 | | | —(3) | |
| | Net realized and unrealized gain/(loss) | | 0.25 | | | 0.44 | | | 0.58 | | | (0.10) | | | (0.01) | |
| Total from Investment Operations | | 0.42 | | | 0.59 | | | 0.77 | | | 0.11 | | | (0.01) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.44) | | | (0.31) | | | (0.43) | | | (0.22) | | | (0.01) | |
| | Distributions (from capital gains) | | — | | | (0.03) | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | — | | | — | | | (0.02) | |
| Total Dividends and Distributions | | (0.44) | | | (0.34) | | | (0.43) | | | (0.22) | | | (0.03) | |
| Net Asset Value, End of Period | | $9.91 | | | $9.93 | | | $9.68 | | | $9.34 | | | $9.45 | |
| Total Return* | | 4.23% | | | 6.17% | | | 8.59% | | | 1.11% | | | (0.10)% | |
| Net Assets, End of Period (in thousands) | | $118,467 | | | $100,323 | | | $70,554 | | | $30,023 | | | $55 | |
| Average Net Assets for the Period (in thousands) | | $131,360 | | | $106,719 | | | $45,901 | | | $19,756 | | | $53 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.81% | | | 0.84% | | | 0.91% | | | 0.89% | | | 0.95% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.83% | | | 0.90% | | | 0.88% | | | 0.95% | |
| | Ratio of Net Investment Income/(Loss) | | 1.74% | | | 1.52% | | | 2.05% | | | 2.31% | | | (0.01)% | |
| Portfolio Turnover Rate | | 37% | | | 88% | | | 42% | | | 125% | | | 112% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through June 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
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Janus Investment Fund | 31 |
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Developed World Bond Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks total return through current income and capital appreciation. The Fund is classified as diversified, as defined in the 1940 Act.
Pursuant to the Agreement and Plan of Reorganization, the Fund acquired all the assets and liabilities of the Henderson Strategic Income Fund (the “Predecessor Fund”), a series of Henderson Global Funds, in exchange for Class A, Class C, Class I and Class N Fund shares having an aggregate net asset value equal to the value of the aggregate net assets of the same share class of the Predecessor Fund (except that Class R6 Predecessor Fund shares were exchanged for Class N Fund shares) (the “Reorganization”). The Reorganization occurred at the close of business on June 2, 2017.
The Predecessor Fund and the Fund had identical investment objectives and substantially similar investment policies and principal risks. For financial reporting purposes, the Predecessor Fund’s financial and performance history prior to the Reorganization is carried forward and reflected in the Fund’s financial highlights.
The last fiscal year end of the Predecessor Fund was July 31, 2016. Subsequent to July 31, 2016, the Fund changed its fiscal year end to June 30, 2017, to reflect the fiscal year end of certain funds of the Trust.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with United States of America generally accepted accounting principles ("US GAAP").
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends are declared and distributed monthly for the Fund. Realized capital gains, if any, are declared and distributed in December. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the year ended June 30, 2021 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the 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.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital's ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE shall be used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a forward currency contract is reported on the Statement of Operations (if applicable).
During the year, the Fund entered into forward currency contracts with the obligation to purchase foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
During the year, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts on commodities are valued at the settlement price on valuation date on the commodities exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used. Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
During the year, the Fund purchased interest rate futures to increase exposure to interest rate risk.
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
During the year, the Fund sold interest rate futures to decrease exposure to interest rate risk.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed upon price on or before a specified date. The purchaser pays a premium to the seller for this right. The seller has the corresponding obligation to sell or buy a financial instrument if the purchaser (owner) "exercises" the option. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid.
Upon expiration, or closing of the option transaction, a realized gain or loss is reported on the Statement of Operations (if applicable). The difference between the premium paid/received and the market value of the option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported on the Statement of Operations (if applicable).
Option contracts are typically valued using an approved vendor’s option valuation model. To the extent reliable market quotations are available, option contracts are valued using market quotations. In cases when an approved vendor cannot provide coverage for an option and there is no reliable market quotation, a broker quotation or an internal valuation using the Black-Scholes model, the Cox-Rubinstein Binomial Option Pricing Model, or other appropriate option pricing model is used.
Certain options contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities as “Variation margin receivable” or “Variation margin payable” (if applicable).
The Fund may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Fund generally invests in options to hedge against adverse movements in the value of portfolio holdings. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or unexpected adverse price movements, could render the Fund’s hedging strategy unsuccessful. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. The Fund may be subject to counterparty risk, interest rate risk, liquidity risk, equity risk, commodity risk, and currency risk in the normal course of pursuing its investment objective through its investments in options contracts.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded OTC expose the Fund to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
The Fund may purchase put options to hedge against a decline in the value of its portfolio. By using put options in this way, the Fund will reduce any profit it might otherwise have realized in the underlying security by the amount of the premium paid for the put option and by transaction costs. The Fund may purchase call options to hedge against an increase in the price of securities that it may buy in the future. The premium paid for the call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises sufficiently, the option may expire worthless to the Fund. The risk in buying options is that the Fund pays a premium whether or not the options are exercised. Options purchased are reported in the Schedule of Investments (if applicable).
During the year, the Fund purchased call options on bond futures in order to increase interest rate risk exposure where reducing this exposure via other markets such as the cash bond market was less attractive.
There were no purchased options held at June 30, 2021.
Swaps
Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a day to more than one year to exchange one set of cash flows for another. The most significant factor in the performance of swap agreements is the change in value of the specific index, security, or currency, or other factors that determine the amounts of payments due to and from the Fund. The use of swaps is a highly specialized activity which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. Swap
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
transactions may in some instances involve the delivery of securities or other underlying assets by the Fund or its counterparty to collateralize obligations under the swap. If the other party to a swap that is not collateralized defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. Swap agreements entail the risk that a party will default on its payment obligations to the Fund. If the other party to a swap defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If the Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return.
Swap agreements also bear the risk that the Fund will not be able to meet its obligation to the counterparty. Swap agreements are typically privately negotiated and entered into in the OTC market. However, certain swap agreements are required to be cleared through a clearinghouse and traded on an exchange or swap execution facility. Swaps that are required to be cleared are required to post initial and variation margins in accordance with the exchange requirements. Regulations enacted require the Fund to centrally clear certain interest rate and credit default index swaps through a clearinghouse or central counterparty (“CCP”). To clear a swap with a CCP, the Fund will submit the swap to, and post collateral with, a futures clearing merchant (“FCM”) that is a clearinghouse member. Alternatively, the Fund may enter into a swap with a financial institution other than the FCM (the “Executing Dealer”) and arrange for the swap to be transferred to the FCM for clearing. The Fund may also enter into a swap with the FCM itself. The CCP, the FCM, and the Executing Dealer are all subject to regulatory oversight by the U.S. Commodity Futures Trading Commission (“CFTC”). A default or failure by a CCP or an FCM, or the failure of a swap to be transferred from an Executing Dealer to the FCM for clearing, may expose the Fund to losses, increase its costs, or prevent the Fund from entering or exiting swap positions, accessing collateral, or fully implementing its investment strategies. The regulatory requirement to clear certain swaps could, either temporarily or permanently, reduce the liquidity of cleared swaps or increase the costs of entering into those swaps.
Index swaps, interest rate swaps, inflation swaps and credit default swaps are valued using an approved vendor supplied price. Basket swaps are valued using a broker supplied price. Equity swaps that consist of a single underlying equity are valued either at the closing price, the latest bid price, or the last sale price on the primary market or exchange it trades. The market value of swap contracts are aggregated by positive and negative values and are disclosed separately as an asset or liability on the Fund’s Statement of Assets and Liabilities (if applicable). Realized gains and losses are reported on the Fund’s Statement of Operations (if applicable). The change in unrealized net appreciation or depreciation during the year is included in the Statement of Operations (if applicable).
The Fund’s maximum risk of loss from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund’s exposure to the counterparty.
The Fund may enter into various types of credit default swap agreements, including OTC credit default swap agreements, for investment purposes, to add leverage to its Fund, or to hedge against widening credit spreads on high-yield/high-risk bonds. Credit default swaps are a specific kind of counterparty agreement that allow 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. Credit default swaps could result in losses if the Fund does not correctly evaluate the creditworthiness of the company or companies on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject to illiquidity risk, counterparty risk, and credit risk. The Fund will generally incur a greater degree of risk when it sells a credit default swap than when it purchases a credit default swap. As a buyer of a credit default swap, the Fund may lose its investment and recover nothing should no credit event occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event were to occur, the value of any deliverable obligation received by the Fund, coupled with the upfront or periodic payments previously received, may be less than what it pays to the buyer, resulting in a loss of value to the Fund.
As a buyer of credit protection, the Fund is entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract in the event of a default or other credit event by a third party, such as a U.S. or foreign issuer, on the debt obligation. In return, the Fund as buyer would pay to the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no credit event occurs, the Fund would have spent the stream of payments and potentially received no benefit from the contract.
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
If the Fund is the seller of credit protection against a particular security, the Fund would receive an up-front or periodic payment to compensate against potential credit events. As the seller in a credit default swap contract, the Fund would be required to pay the par value (the “notional value”) (or other agreed-upon value) of a referenced debt obligation to the counterparty in the event of a default by a third party, such as a U.S. or foreign corporate issuer, on the debt obligation. In return, the Fund would receive from the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, the Fund would keep the stream of payments and would have no payment obligations. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional value of the swap. The maximum potential amount of future payments (undiscounted) that the Fund as a seller could be required to make in a credit default transaction would be the notional amount of the agreement.
The Fund may invest in single-name credit default swaps (“CDS”) to buy or sell credit protection to hedge its credit exposure, gain issuer exposure without owning the underlying security, or increase the Fund’s total return. Single-name CDS enable the Fund to buy or sell protection against a credit event of a specific issuer. When the Fund buys a single-name CDS, the Fund will receive a return on its investment only in the event of a credit event, such as default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). If a single-name CDS transaction is particularly large, or if the relevant market is illiquid, it may not be possible for the Fund to initiate a single-name CDS transaction or to liquidate its position at an advantageous time or price, which may result in significant losses. Moreover, the Fund bears the risk of loss of the amount expected to be received under a single-name CDS in the event of the default or bankruptcy of the counterparty. The risks associated with cleared single-name CDS may be lower than that for uncleared single-name CDS because for cleared single-name CDS, the counterparty is a clearinghouse (to the extent such a trading market is available). However, there can be no assurance that a clearinghouse or its members will satisfy their obligations to the Fund.
The Fund may invest in CDXs. A CDX is a swap on an index of credit default swaps. CDXs allow an investor to manage credit risk or take a position on a basket of credit entities (such as credit default swaps or commercial mortgage-backed securities) in a more efficient manner than transacting in a single-name CDS. If a credit event occurs in one of the underlying companies, the protection is paid out via the delivery of the defaulted bond by the buyer of protection in return for a payment of notional value of the defaulted bond by the seller of protection or it may be settled through a cash settlement between the two parties. The underlying company is then removed from the index. If the Fund holds a long position in a CDX, the Fund would indirectly bear its proportionate share of any expenses paid by a CDX. A Fund holding a long position in CDXs typically receives income from principal or interest paid on the underlying securities. By investing in CDXs, the Fund could be exposed to illiquidity risk, counterparty risk, and credit risk of the issuers of the underlying loan obligations and of the CDX markets. If there is a default by the CDX counterparty, the Fund will have contractual remedies pursuant to the agreements related to the transaction. CDXs also bear the risk that the Fund will not be able to meet its obligation to the counterparty.
During the year, the Fund purchased protection via the credit default swap market in order to reduce credit risk exposure to individual corporates, countries and/or credit indices where reducing this exposure via the cash bond market was less attractive.
During the year, the Fund sold protection via the credit default swap market in order to gain credit risk exposure to individual corporates, countries and/or credit indices where gaining this exposure via the cash bond market was less attractive.
3. Other Investments and Strategies
Additional Investment Risk
The Fund may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes, or adverse developments specific to the issuer.
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
Loans
The Fund may invest in various commercial loans, including bank loans, bridge loans, debtor-in-possession (“DIP”) loans, mezzanine loans, and other fixed and floating rate loans. These loans may be acquired through loan participations and assignments or on a when-issued basis. Commercial loans will comprise no more than 20% of the Fund’s total assets. Below are descriptions of the types of loans held by the Fund as of June 30, 2021.
· Bank Loans - Bank loans are obligations of companies or other entities entered into in connection with recapitalizations, acquisitions, and refinancings. The Fund’s 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.
· Floating Rate Loans – Floating rate loans are debt securities that have floating interest rates, that adjust periodically, and are tied to a benchmark lending rate, such as London Interbank Offered Rate (“LIBOR”). In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (‘‘borrowers’’) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. While the Fund generally expects to invest in fully funded term loans, certain of the loans in which the Fund may invest include revolving loans, bridge loans, and delayed draw term loans.
Purchasers of floating rate loans may pay and/or receive certain fees. The Fund may receive fees such as covenant waiver fees or prepayment penalty fees. The Fund may pay fees such as facility fees. Such fees may affect the Fund’s return.
· Mezzanine Loans - Mezzanine loans are secured by the stock of the company that owns the assets. Mezzanine loans are a hybrid of debt and equity financing that is typically used to fund the expansion of existing companies. A mezzanine loan is composed of debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. Mezzanine loans typically are the most subordinated debt obligation in an issuer’s capital structure.
Mortgage- and Asset-Backed Securities
Mortgage- and asset-backed securities represent interests in “pools” of commercial or residential mortgages or other assets, including consumer and commercial loans or receivables. The Fund may purchase fixed or variable rate commercial or residential mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. Ginnie Mae’s guarantees are backed as to the timely payment of principal and interest by the full faith and credit of the U.S. Government. Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. Since that time, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases and Treasury and Federal Reserve purchases of their mortgage-backed securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac.
The Fund may also purchase other mortgage- and asset-backed securities through single- and multi-seller conduits, collateralized debt obligations, structured investment vehicles, and other similar securities. Asset-backed securities may be backed by various consumer obligations, including automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying loans are not paid, the securities’ issuer could be forced to sell the assets
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
and recognize losses on such assets, which could impact your return. Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Mortgage- and asset-backed securities are subject to both extension risk, where borrowers pay off their debt obligations more slowly in times of rising interest rates, and prepayment risk, where borrowers pay off their debt obligations sooner than expected in times of declining interest rates. These risks may reduce the Fund’s returns. In addition, investments in mortgage- and asset-backed securities, including those comprised of subprime mortgages, may be subject to a higher degree of credit risk, valuation risk, extension risk (if interest rates rise), and liquidity risk than various other types of fixed-income securities. Additionally, although mortgage-backed securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that guarantors or insurers will meet their obligations.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment.
The following tables present gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of June 30, 2021” table located in the Fund’s Schedule of Investments.
| | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
BNP Paribas | $ | 29,673,860 | $ | (97,184) | $ | — | $ | 29,576,676 |
JPMorgan Chase Bank, National Association | | 4,101,822 | | — | | (4,101,822) | | — |
| | | | | | | | | |
Total | $ | 33,775,682 | $ | (97,184) | $ | (4,101,822) | $ | 29,576,676 |
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
| | | | | | | | | | |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Barclays Capital, Inc | $ | 6,254 | $ | — | $ | — | $ | 6,254 |
BNP Paribas | | 97,184 | | (97,184) | | — | | — |
| | | | | | | | | |
Total | $ | 103,438 | $ | (97,184) | $ | — | $ | 6,254 |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
The Fund may require the counterparty to pledge securities as collateral daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized gain on OTC derivative contracts with a particular counterparty. The Fund may deposit cash as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. The collateral amounts are subject to minimum exposure requirements and initial margin requirements. Collateral amounts are monitored and subsequently adjusted up or down as valuations fluctuate by at least the minimum exposure requirement. Collateral may reduce the risk of loss.
Real Estate Investing
The Fund may invest 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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund securities in an amount equal to up to 1/3 of its total assets as
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to primarily invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of June 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $4,101,822. Gross amounts of recognized liabilities for securities lending (collateral received) as of June 30, 2021 is $4,776,370, resulting in the net amount due to the counterparty of $674,548.
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt of less developed countries, 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 debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including, but not limited to, 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 debtor’s 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 debtor’s ability or willingness to timely service its debts. The 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 Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
When-Issued, Delayed Delivery and Forward Commitment Transactions
The Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis. When purchasing a security on a when-issued, delayed delivery, or forward commitment basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made. Because the Fund is not required to pay for the security until the delivery date, these risks are in addition to the risks associated with the Fund’s other investments. If the other party to a transaction fails to deliver the securities, the Fund could miss a favorable price or yield opportunity. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases are outstanding, the purchases may result in a form of leverage. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases (including TBA commitments) are outstanding, the purchases may result in a form of leverage.
When the Fund has sold a security on a when-issued, delayed delivery, or forward commitment basis, the Fund does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to pay for the securities, the Fund could suffer a loss. Additionally, when selling a security on a when-issued, delayed delivery, or forward commitment basis without owning the security, the Fund will incur a loss if the security’s price appreciates in value such that the security’s price is above the agreed upon price on the settlement date. The Fund may dispose of or renegotiate a transaction after it is entered into, and may purchase or sell when-issued, delayed delivery or forward commitment securities before the settlement date, which may result in a gain or loss.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $1 Billion | 0.55 |
Next $500 Million | 0.50 |
Above $1.5 Billion | 0.45 |
The Fund’s actual investment advisory fee rate for the reporting period was 0.51% of average annual net assets before any applicable waivers.
Janus Capital has entered into a personnel-sharing arrangement with its foreign (non-U.S.) affiliates, Henderson Global Investors Limited, Henderson Global Investors (Japan) Ltd., and Henderson Global Investors (Singapore) Ltd. (collectively, “HGIL”), pursuant to which HGIL and certain employees of HGIL serve as “associated persons” of Janus Capital. In this capacity, such employees of HGIL are subject to the oversight and supervision of Janus Capital and may provide portfolio management, research, and related services to the Fund on behalf of Janus Capital.
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, networking/omnibus/administrative fees and out-of-pocket transfer agency fees, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (but not including out-of-pocket costs), and administrative services fees, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.57% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers until at least October 31, 2021. Networking/omnibus/administrative fees and out-of-pocket transfer agency fees were not waived under the Fund’s prior expense limitation agreement. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
Class A Shares include a 4.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $21,481.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class A Shares paid CDSCs of $4,937 to Janus Henderson Distributors.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $5,198.
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, derivatives, and foreign currency contract adjustments. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 3,752,440 | $ - | $ (57,047,898) | $ - | $ - | $1,655,859 | $ 81,759,008 | |
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended June 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(20,524,014) | $(36,523,884) | $ (57,047,898) | | |
During the year ended June 30, 2021, capital loss carryovers of $28,095,366 were utilized by the Fund.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships, and straddle loss deferrals.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 2,426,436,470 | $93,741,591 | $(11,982,583) | $ 81,759,008 |
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
Information on the tax components of derivatives as of June 30, 2021 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 25,243,408 | $ 1,808,389 | $ - | $ 1,808,389 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 94,940,302 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 49,183,244 | $ 3,873,056 | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ - | $ (30,142,551) | $ 30,142,551 |
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 8,247,886 | $ 82,966,547 | | 3,649,180 | $ 35,708,506 |
Reinvested dividends and distributions | 378,103 | 3,794,172 | | 188,803 | 1,833,350 |
Shares repurchased | (2,820,240) | (28,301,952) | | (3,202,078) | (31,092,974) |
Net Increase/(Decrease) | 5,805,749 | $ 58,458,767 | | 635,905 | $ 6,448,882 |
Class C Shares: | | | | | |
Shares sold | 1,360,416 | $ 13,596,096 | | 1,902,787 | $ 18,490,357 |
Reinvested dividends and distributions | 130,435 | 1,301,199 | | 92,453 | 889,160 |
Shares repurchased | (1,557,174) | (15,503,080) | | (2,040,062) | (19,728,977) |
Net Increase/(Decrease) | (66,323) | $ (605,785) | | (44,822) | $ (349,460) |
Class D Shares: | | | | | |
Shares sold | 3,132,766 | $ 31,558,549 | | 2,705,399 | $ 26,522,420 |
Reinvested dividends and distributions | 195,089 | 1,957,862 | | 76,724 | 745,010 |
Shares repurchased | (2,417,999) | (24,026,338) | | (1,396,780) | (13,400,531) |
Net Increase/(Decrease) | 909,856 | $ 9,490,073 | | 1,385,343 | $ 13,866,899 |
Class I Shares: | | | | | |
Shares sold | 134,791,042 | $1,345,843,218 | | 101,325,222 | $985,964,932 |
Reinvested dividends and distributions | 6,945,500 | 69,444,411 | | 4,018,988 | 38,927,774 |
Shares repurchased | (60,371,629) | (600,174,413) | | (67,365,757) | (641,276,581) |
Net Increase/(Decrease) | 81,364,913 | $ 815,113,216 | | 37,978,453 | $383,616,125 |
Class N Shares: | | | | | |
Shares sold | 5,276,998 | $ 52,771,404 | | 3,886,797 | $ 37,866,390 |
Reinvested dividends and distributions | 206,687 | 2,066,035 | | 64,923 | 629,285 |
Shares repurchased | (1,641,725) | (16,363,209) | | (1,338,783) | (12,282,346) |
Net Increase/(Decrease) | 3,841,960 | $ 38,474,230 | | 2,612,937 | $ 26,213,329 |
Class S Shares: | | | | | |
Shares sold | 43,131 | $ 436,940 | | 6,278 | $ 61,936 |
Reinvested dividends and distributions | 2,002 | 20,071 | | 709 | 6,868 |
Shares repurchased | (14,520) | (147,537) | | (781) | (7,456) |
Net Increase/(Decrease) | 30,613 | $ 309,474 | | 6,206 | $ 61,348 |
Class T Shares: | | | | | |
Shares sold | 10,015,363 | $ 100,449,246 | | 13,094,096 | $128,213,150 |
Reinvested dividends and distributions | 581,389 | 5,827,151 | | 419,488 | 4,065,526 |
Shares repurchased | (8,750,663) | (86,616,407) | | (10,695,753) | (100,879,359) |
Net Increase/(Decrease) | 1,846,089 | $ 19,659,990 | | 2,817,831 | $ 31,399,317 |
Janus Henderson Developed World Bond Fund
Notes to Financial Statements
7. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$1,299,775,258 | $ 704,346,452 | $ 116,253,906 | $ 8,134,100 |
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Developed World Bond Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Developed World Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Developed World Bond Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the “Fund”) as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the periods indicated therein beginning on or after August 1, 2016 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the periods indicated therein beginning on or after August 1, 2016 in conformity with accounting principles generally accepted in the United States of America.
The financial statements of the Fund as of and for the year ended July 31, 2016 and the financial highlights for each of the periods ended on or prior to July 31, 2016 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated September 23, 2016 expressed an unqualified opinion on those financial statements and financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Developed World Bond Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Developed World Bond Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Developed World Bond Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Developed World Bond Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Developed World Bond Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Section 163(j) Interest Dividend | 100% |
Janus Henderson Developed World Bond Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Developed World Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Developed World Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Developed World Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Developed World Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Developed World Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Developed World Bond Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Jenna Barnard
151 Detroit Street
Denver, CO 80206
DOB: 1980 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Developed World Bond Fund | 12/08-Present | Co-Head of Strategic Fixed Income of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
John Pattullo
151 Detroit Street
Denver, CO 80206
DOB: 1970 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Developed World Bond Fund | 12/08-Present | Co-Head of Strategic Fixed Income of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
Janus Henderson Developed World Bond Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
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| | | ANNUAL REPORT June 30, 2021 |
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| | Janus Henderson Dividend & Income Builder Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Dividend & Income Builder Fund
Janus Henderson Dividend & Income Builder Fund (unaudited)
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FUND SNAPSHOT The Janus Henderson Dividend & Income Builder Fund is a global portfolio of income-producing securities. The Fund invests primarily in dividend-paying equities, with an allocation to fixed income securities. The equity and fixed income allocation is driven by assessment of the relative attractiveness of income opportunities within each asset class and views on the broader market environment. Within the equity allocation, we seek companies that pay an attractive and sustainable dividend yield with the capability to grow over the medium to long term. The fixed income allocation is used opportunistically in the 10% to 30% range as well as to seek to protect capital when the portfolio management team thinks the macroenvironment dictates it; this allows us to seek to reduce the beta further when appropriate. | | 
Alex Crooke co-portfolio manager | 
Faizan Baig co-portfolio manager | 
Ben Lofthouse co-portfolio manager | 
Jenna Barnard co-portfolio manager | 
John Pattullo co-portfolio manager |
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PERFORMANCE
The Janus Henderson Dividend & Income Builder Fund Class I shares returned 24.68% for the 12-month period ended June 30, 2021. The Fund’s primary benchmark, the MSCI World IndexSM, returned 39.04%. The Fund’s secondary benchmark, the 75% MSCI World / 25% Bloomberg Barclays Global Aggregate Credit (USD Hedged) Index, returned 29.33%. The secondary benchmark is an internally calculated, hypothetical combination of total returns from the MSCI World Index (75%) and the Bloomberg Barclays Global Aggregate Credit (USD Hedged) Index (25%).
INVESTMENT ENVIRONMENT
The period under review was dominated by the COVID-19 pandemic; after an initial panic and liquidity crisis, equity and fixed income markets both performed strongly in the wake of stimulus injected across the globe. Dividend strategies, however, did not fare as well, despite the collapse in interest rates generating record demand for high-quality credit.
There was a clear shift toward sectors and industries that were clear beneficiaries of the economy’s reopening, such as consumer discretionary, materials and industrials. The information technology sector extended its strong performance, as the market cemented its belief that the digitalization step-change precipitated by the lockdowns will persist. Defensive sectors such as utilities and health care underperformed.
In some regions (such as the UK) where dividend cuts were prevalent in 2020, we have seen payments reinstated, with most companies returning to the dividend register and others making “catch-up” payments and special dividends.
PERFORMANCE DISCUSSION
From a sector perspective, the biggest laggard relative to the benchmark was financials. Here, banks and diversified financials notably outperformed insurance, and the Fund’s higher exposure to insurance companies versus diversified financials detracted from relative performance. We have favored insurance companies during the pandemic period as they have been able to pay attractive
Janus Henderson Dividend & Income Builder Fund (unaudited)
dividends for the Fund, and we believe they may be likely to have lower COVID-related losses than the market prices in. Our holdings in health care also contributed negatively to performance, as the market rotated to more cyclical names in the sector. However, toward period end the Fund’s holdings traded at very attractive valuations relative to their defensible competitive positions and growth profiles. Overall, we see good levels of capital and income upside from our holdings in the sector.
The Fund’s fixed income allocation also detracted over the period, as global bonds experienced a disappointing year on the back of rising inflation expectations.
Stock selection in technology was a notable positive driver of relative outperformance during the period, with holdings proving resilient in both up and down markets due to demand. We added to the space over the period on the view that the valuations and dividend yields appear attractive in the low rate environment. Materials was one of the best-performing sectors in the index, and the Fund’s overweight contributed on a relative basis. Finally, although consumer discretionary underperformed relative to the benchmark over the period, our stock picking in the sector benefited relative returns.
DERIVITAVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
It has been encouraging to see that company results in general have been as strong as they have, given that so much of the global economy has not reopened. In the U.S., we often forget how much of the rest of the world remains closed and how much service activity went with it. We are seeing some of that gap close in leisure, but not yet in business. It has been disappointing to see countries delay reopening as vaccine rollouts (ex U.S., UK and Israel) have been very slow or nonexistent. While most investors in the U.S. are consumed with the inflation (and rates) debate, the rest of the world is nowhere near normalization. Even China has begun to discuss possible easing schemes. That may bode well for Asian and European markets; however, the jury is still out. We continue to see signs of companies being more comfortable to distribute dividends and this is supportive for the Fund’s income generation during the remainder of the year.
Janus Henderson Dividend & Income Builder Fund (unaudited)
Fund At A Glance
June 30, 2021
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Equity Sleeve Holdings | 5 Top Detractors - Equity Sleeve Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Taiwan Semiconductor Manufacturing Co Ltd (ADR) | 3.18% | | 2.24% | | Novartis AG | 2.06% | | -0.64% |
| Samsung Electronics Co Ltd | 3.14% | | 0.97% | | GlaxoSmithKline PLC | 0.90% | | -0.63% |
| Entain PLC | 0.76% | | 0.55% | | Nestle SA (REG) | 2.76% | | -0.58% |
| ING Groep NV | 1.20% | | 0.51% | | Roche Holding AG | 1.76% | | -0.56% |
| Anglo American PLC | 1.43% | | 0.38% | | Cisco Systems Inc | 2.58% | | -0.53% |
| | | | | | | |
| 5 Top Contributors - Equity Sleeve Sectors* | | | | | |
| | | Relative | | Equity Sleeve | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | 1.73% | | 16.69% | 21.63% |
| Materials | | 0.02% | | 6.50% | 4.53% |
| Real Estate | | -0.08% | | 2.22% | 2.74% |
| Consumer Discretionary | | -0.28% | | 6.21% | 11.89% |
| Energy | | -0.52% | | 3.36% | 2.94% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Equity Sleeve Sectors* | | | | | |
| | | Relative | | Equity Sleeve | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -1.89% | | 14.53% | 12.98% |
| Utilities | | -1.43% | | 8.55% | 3.11% |
| Health Care | | -1.40% | | 14.30% | 13.05% |
| Communication Services | | -1.33% | | 4.58% | 8.99% |
| Consumer Staples | | -1.25% | | 11.81% | 7.62% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Henderson Dividend & Income Builder Fund (unaudited)
Fund At A Glance
June 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 3.8% |
Samsung Electronics Co Ltd | |
Technology Hardware, Storage & Peripherals | 3.0% |
Nestle SA (REG) | |
Food Products | 2.3% |
UPM-Kymmene Oyj | |
Paper & Forest Products | 2.1% |
AstraZeneca PLC | |
Pharmaceuticals | 2.0% |
| | 13.2% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 83.0% | |
Corporate Bonds | | 11.0% | |
Preferred Stocks | | 3.0% | |
Investment Companies | | 2.5% | |
Other | | 0.5% |
| | | 100.0% |
Emerging markets comprised 6.4% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of June 30, 2021 
| As of June 30, 2020 
|
Janus Henderson Dividend & Income Builder Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 24.38% | 7.89% | 7.87% | | | 1.25% | 1.16% |
Class A Shares at MOP | | 17.23% | 6.78% | 7.25% | | | | |
Class C Shares at NAV | | 23.48% | 7.04% | 7.04% | | | 2.00% | 1.91% |
Class C Shares at CDSC | | 22.48% | 7.04% | 7.04% | | | | |
Class D Shares | | 24.58% | 8.03% | 8.02% | | | 1.20% | 0.99% |
Class I Shares | | 24.68% | 8.12% | 8.11% | | | 1.00% | 0.91% |
Class N Shares | | 24.71% | 8.13% | 8.08% | | | 1.51% | 0.84% |
Class S Shares | | 24.68% | 7.87% | 7.77% | | | 7.13% | 1.35% |
Class T Shares | | 24.45% | 7.92% | 7.91% | | | 1.21% | 1.09% |
MSCI World Index | | 39.04% | 14.83% | 12.53% | | | | |
75% MSCI World / 25% BBgBarc Global Agg Credit (USD Hedged) Index | | 29.33% | 12.33% | 10.57% | | | | |
Morningstar Quartile - Class I Shares | | 3rd | 3rd | 1st | | | | |
Morningstar Ranking - based on total returns for World Allocation Funds | | 250/468 | 204/419 | 70/373 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk
Janus Henderson Dividend & Income Builder Fund (unaudited)
Performance
securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson Dividend & Income Builder Fund (the “Predecessor Fund”), which merged into the Fund after the close of business on June 2, 2017. The Predecessor Fund was advised by Henderson Global Investors (North America) Inc. and subadvised by Henderson Investment Management Limited. Class A Shares, Class C Shares, Class I Shares, and Class R6 Shares of the Predecessor Fund were reorganized into Class A Shares, Class C Shares, Class I Shares, and Class N Shares, respectively, of the Fund. In connection with this reorganization, certain shareholders of the Predecessor Fund who held shares directly with the Predecessor Fund and not through an intermediary had the Class A Shares, Class C Shares, Class I Shares, and Class N Shares of the Fund received in the reorganization automatically exchanged for Class D Shares of the Fund following the reorganization. Class A Shares, Class C Shares, and Class I Shares of the Predecessor Fund commenced operations with the Predecessor Fund’s inception on August 1, 2012. Class R6 Shares of the Predecessor Fund commenced operations on November 30, 2015. Class D Shares, Class S Shares, and Class T Shares commenced operations on June 5, 2017.
Performance of Class A Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class C Shares shown for periods prior to June 5, 2017, reflects the performance of Class C Shares of the Predecessor Fund, calculated using the fees and expenses of Class C Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class I Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the fees and expenses of Class I Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class N Shares shown for periods prior to June 5, 2017, reflects the performance of Class R6 Shares of the Predecessor Fund, calculated using the fees and expenses of Class R6 Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to November 30, 2015, performance for Class N Shares reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class N Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class S Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class S Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class T Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class D Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
Effective October 28, 2020, Faizan Baig, Alex Crooke, Ben Lofthouse, Jenna Barnard and John Pattullo are Co-Portfolio Managers of the Fund.
*The Predecessor Fund’s inception date – August 1, 2012
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Dividend & Income Builder Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $1,076.80 | $5.82 | | $1,000.00 | $1,019.19 | $5.66 | 1.13% |
Class C Shares | $1,000.00 | $1,072.60 | $9.46 | | $1,000.00 | $1,015.67 | $9.20 | 1.84% |
Class D Shares | $1,000.00 | $1,077.80 | $5.00 | | $1,000.00 | $1,019.98 | $4.86 | 0.97% |
Class I Shares | $1,000.00 | $1,077.80 | $4.64 | | $1,000.00 | $1,020.33 | $4.51 | 0.90% |
Class N Shares | $1,000.00 | $1,078.10 | $4.28 | | $1,000.00 | $1,020.68 | $4.16 | 0.83% |
Class S Shares | $1,000.00 | $1,077.40 | $5.00 | | $1,000.00 | $1,019.98 | $4.86 | 0.97% |
Class T Shares | $1,000.00 | $1,077.00 | $5.51 | | $1,000.00 | $1,019.49 | $5.36 | 1.07% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Dividend & Income Builder Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– 11.0% | | | |
Banking – 1.1% | | | |
| | Barclays Bank PLC, ICE LIBOR USD 3 Month + 1.5500%, 6.2780%‡,µ | | $910,000 | | | $1,225,087 | |
| | Lloyds Banking Group PLC, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.2700%, 6.6570% (144A)‡,µ | | 412,000 | | | 576,493 | |
| | | 1,801,580 | |
Communications – 4.7% | | | |
| | CCO Holdings LLC / CCO Holdings Capital Corp, 4.5000%, 8/15/30 (144A) | | 500,000 | | | 520,607 | |
| | Charter Communications Operating LLC / Charter Communications Operating Capital, | | | | | | |
| | 4.2000%, 3/15/28 | | 1,000,000 | | | 1,131,678 | |
| | Crown Castle International Corp, 3.8000%, 2/15/28 | | 1,000,000 | | | 1,111,080 | |
| | Sirius XM Radio Inc, 5.5000%, 7/1/29 (144A) | | 1,000,000 | | | 1,089,700 | |
| | T-Mobile USA Inc, 3.8750%, 4/15/30 | | 925,000 | | | 1,033,983 | |
| | Virgin Media Finance PLC, 5.0000%, 7/15/30 (144A) | | 1,000,000 | | | 1,010,290 | |
| | Vodafone Group PLC, 4.3750%, 5/30/28 | | 1,000,000 | | | 1,163,270 | |
| | Ziggo BV, 4.8750%, 1/15/30 (144A) | | 500,000 | | | 512,500 | |
| | | 7,573,108 | |
Consumer Cyclical – 0.5% | | | |
| | Service Corp International/US, 5.1250%, 6/1/29 | | 800,000 | | | 868,000 | |
Consumer Non-Cyclical – 3.7% | | | |
| | Anheuser-Busch InBev Worldwide Inc, 4.7500%, 1/23/29 | | 1,500,000 | | | 1,786,897 | |
| | Constellation Brands Inc, 3.1500%, 8/1/29 | | 600,000 | | | 643,440 | |
| | Elanco Animal Health Inc, 5.9000%, 8/28/28 | | 670,000 | | | 784,081 | |
| | Sysco Corp, 5.9500%, 4/1/30 | | 498,000 | | | 638,715 | |
| | Tesco PLC, 6.1500%, 11/15/37 (144A) | | 1,500,000 | | | 1,993,991 | |
| | | 5,847,124 | |
Real Estate Investment Trusts (REITs) – 0.7% | | | |
| | Digital Realty Trust LP, 3.6000%, 7/1/29 | | 1,000,000 | | | 1,110,905 | |
Technology – 0.3% | | | |
| | VMware Inc, 3.9000%, 8/21/27 | | 353,000 | | | 392,304 | |
Total Corporate Bonds (cost $15,918,187) | | 17,593,021 | |
Common Stocks– 83.0% | | | |
Automobiles – 2.3% | | | |
| | Daimler AG | | 16,232 | | | 1,449,131 | |
| | Stellantis NV | | 116,682 | | | 2,290,063 | |
| | | 3,739,194 | |
Banks – 4.2% | | | |
| | BAWAG Group AG (144A)* | | 32,570 | | | 1,733,051 | |
| | Citigroup Inc | | 20,258 | | | 1,433,253 | |
| | ING Groep NV | | 155,514 | | | 2,053,976 | |
| | Lloyds Banking Group PLC | | 2,247,201 | | | 1,451,181 | |
| | | 6,671,461 | |
Beverages – 2.2% | | | |
| | Coca-Cola Co | | 36,238 | | | 1,960,838 | |
| | PepsiCo Inc | | 11,005 | | | 1,630,611 | |
| | | 3,591,449 | |
Biotechnology – 0.9% | | | |
| | AbbVie Inc | | 12,136 | | | 1,366,999 | |
Capital Markets – 2.9% | | | |
| | CME Group Inc | | 7,057 | | | 1,500,883 | |
| | UBS Group AG | | 209,320 | | | 3,204,293 | |
| | | 4,705,176 | |
Chemicals – 0.9% | | | |
| | Air Products & Chemicals Inc | | 4,852 | | | 1,395,823 | |
Communications Equipment – 1.8% | | | |
| | Cisco Systems Inc | | 55,000 | | | 2,915,000 | |
Consumer Finance – 0.5% | | | |
| | OneMain Holdings Inc | | 12,968 | | | 776,913 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Dividend & Income Builder Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Containers & Packaging – 0.9% | | | |
| | Amcor PLC | | 128,481 | | | $1,457,548 | |
Diversified Telecommunication Services – 2.2% | | | |
| | Telenor ASA | | 122,788 | | | 2,070,198 | |
| | TELUS Corp | | 63,876 | | | 1,432,752 | |
| | | 3,502,950 | |
Electric Utilities – 2.5% | | | |
| | Enel SpA | | 222,311 | | | 2,064,307 | |
| | Iberdrola SA | | 156,382 | | | 1,905,990 | |
| | | 3,970,297 | |
Electrical Equipment – 3.5% | | | |
| | ABB Ltd | | 58,033 | | | 1,969,358 | |
| | nVent Electric PLC | | 68,341 | | | 2,134,973 | |
| | Schneider Electric SE | | 10,103 | | | 1,589,266 | |
| | | 5,693,597 | |
Electronic Equipment, Instruments & Components – 0.9% | | | |
| | Corning Inc | | 37,036 | | | 1,514,772 | |
Entertainment – 0.8% | | | |
| | Vivendi SA | | 36,784 | | | 1,235,510 | |
Equity Real Estate Investment Trusts (REITs) – 1.0% | | | |
| | Crown Castle International Corp | | 8,167 | | | 1,593,382 | |
Food Products – 3.3% | | | |
| | Mondelez International Inc | | 26,161 | | | 1,633,493 | |
| | Nestle SA (REG) | | 29,913 | | | 3,726,028 | |
| | | 5,359,521 | |
Gas Utilities – 0.3% | | | |
| | Kunlun Energy Co Ltd | | 478,000 | | | 440,808 | |
Health Care Equipment & Supplies – 1.9% | | | |
| | Medtronic PLC | | 24,282 | | | 3,014,125 | |
Hotels, Restaurants & Leisure – 1.8% | | | |
| | GVC Holdings PLC* | | 55,172 | | | 1,331,969 | |
| | McDonald's Corp | | 7,071 | | | 1,633,330 | |
| | | 2,965,299 | |
Household Durables – 1.3% | | | |
| | Panasonic Corp | | 184,700 | | | 2,137,485 | |
Industrial Conglomerates – 1.1% | | | |
| | Honeywell International Inc | | 7,685 | | | 1,685,705 | |
Insurance – 6.1% | | | |
| | Allianz SE | | 10,894 | | | 2,716,235 | |
| | AXA SA | | 109,305 | | | 2,771,341 | |
| | Direct Line Insurance Group PLC | | 312,657 | | | 1,232,448 | |
| | Manulife Financial Corp | | 86,110 | | | 1,695,243 | |
| | Sampo Oyj | | 29,140 | | | 1,339,103 | |
| | | 9,754,370 | |
Machinery – 2.7% | | | |
| | SKF AB | | 61,457 | | | 1,565,230 | |
| | Volvo AB | | 112,126 | | | 2,698,437 | |
| | | 4,263,667 | |
Metals & Mining – 2.5% | | | |
| | Anglo American PLC | | 60,660 | | | 2,410,006 | |
| | Rio Tinto PLC | | 20,033 | | | 1,648,336 | |
| | | 4,058,342 | |
Multi-Utilities – 2.0% | | | |
| | Dominion Energy Inc | | 15,248 | | | 1,121,795 | |
| | National Grid PLC | | 91,885 | | | 1,170,215 | |
| | Sempra Energy | | 7,000 | | | 927,360 | |
| | | 3,219,370 | |
Oil, Gas & Consumable Fuels – 3.8% | | | |
| | Repsol SA | | 88,626 | | | 1,108,968 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Dividend & Income Builder Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Oil, Gas & Consumable Fuels– (continued) | | | |
| | Royal Dutch Shell PLC | | 123,743 | | | $2,494,666 | |
| | Total SE | | 54,978 | | | 2,487,030 | |
| | | 6,090,664 | |
Paper & Forest Products – 2.1% | | | |
| | UPM-Kymmene Oyj | | 91,043 | | | 3,443,321 | |
Personal Products – 1.6% | | | |
| | Unilever PLC | | 42,728 | | | 2,500,762 | |
Pharmaceuticals – 9.5% | | | |
| | AstraZeneca PLC | | 27,039 | | | 3,247,253 | |
| | Bristol-Myers Squibb Co | | 37,458 | | | 2,502,944 | |
| | Merck & Co Inc | | 29,029 | | | 2,257,585 | |
| | Novartis AG | | 15,246 | | | 1,389,776 | |
| | Novo Nordisk A/S | | 18,056 | | | 1,512,946 | |
| | Roche Holding AG | | 3,990 | | | 1,503,475 | |
| | Sanofi | | 27,024 | | | 2,831,040 | |
| | | 15,245,019 | |
Professional Services – 1.5% | | | |
| | RELX PLC | | 88,942 | | | 2,370,521 | |
Semiconductor & Semiconductor Equipment – 5.9% | | | |
| | Alphawave IP Group PLC* | | 315,496 | | | 1,570,913 | |
| | Broadcom Inc | | 3,891 | | | 1,855,384 | |
| | Powertech Technology Inc | | 416,000 | | | 1,605,169 | |
| | Taiwan Semiconductor Manufacturing Co Ltd (ADR) | | 22,454 | | | 2,698,073 | |
| | Texas Instruments Inc | | 9,188 | | | 1,766,852 | |
| | | 9,496,391 | |
Software – 3.8% | | | |
| | Microsoft Corp | | 22,295 | | | 6,039,715 | |
Specialty Retail – 0.4% | | | |
| | Topsports International Holdings Ltd (144A) | | 440,000 | | | 720,856 | |
Textiles, Apparel & Luxury Goods – 2.2% | | | |
| | Burberry Group PLC* | | 63,565 | | | 1,816,369 | |
| | VF Corp | | 20,756 | | | 1,702,822 | |
| | | 3,519,191 | |
Tobacco – 0.8% | | | |
| | Imperial Brands PLC | | 62,260 | | | 1,340,767 | |
Wireless Telecommunication Services – 0.9% | | | |
| | Tele2 AB | | 109,630 | | | 1,494,093 | |
Total Common Stocks (cost $109,337,634) | | 133,290,063 | |
Preferred Stocks– 3.0% | | | |
Technology Hardware, Storage & Peripherals – 3.0% | | | |
| | Samsung Electronics Co Ltd((cost $2,561,052) | | 74,533 | | | 4,878,403 | |
Investment Companies– 2.5% | | | |
Money Markets – 2.5% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº,£((cost $4,002,763) | | 4,002,362 | | | 4,002,763 | |
Total Investments (total cost $131,819,636) – 99.5% | | 159,764,250 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.5% | | 750,288 | |
Net Assets – 100% | | $160,514,538 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson Dividend & Income Builder Fund
Schedule of Investments
June 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $59,149,361 | | 37.0 | % |
United Kingdom | | 25,683,254 | | 16.1 | |
Switzerland | | 11,792,930 | | 7.4 | |
France | | 10,914,187 | | 6.8 | |
Netherlands | | 7,437,759 | | 4.7 | |
Sweden | | 5,757,760 | | 3.6 | |
South Korea | | 4,878,403 | | 3.1 | |
Finland | | 4,782,424 | | 3.0 | |
Italy | | 4,354,370 | | 2.7 | |
Taiwan | | 4,303,242 | | 2.7 | |
Germany | | 4,165,366 | | 2.6 | |
Canada | | 3,127,995 | | 2.0 | |
Spain | | 3,014,958 | | 1.9 | |
Japan | | 2,137,485 | | 1.3 | |
Norway | | 2,070,198 | | 1.3 | |
Belgium | | 1,786,897 | | 1.1 | |
Austria | | 1,733,051 | | 1.1 | |
Denmark | | 1,512,946 | | 0.9 | |
China | | 1,161,664 | | 0.7 | |
| | | | | | |
| | | | | | |
Total | | $159,764,250 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 6/30/21 |
Investment Companies - 2.5% |
Money Markets - 2.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | $ | 1,911 | $ | 120 | $ | - | $ | 4,002,763 |
| |
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 2.5% |
Money Markets - 2.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | | - | | 59,874,031 | | (55,871,388) | | 4,002,763 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Dividend & Income Builder Fund
Schedule of Investments
June 30, 2021
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended June 30, 2021.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended June 30, 2021 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $(487,111) |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ (74,825) |
| | | | | |
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
Average Ending Monthly Market Value of Derivative Instruments During the Year Ended June 30, 2021 |
| |
| Market Value(a) |
Forward foreign currency exchange contracts, purchased | $ 1,174,944 |
Forward foreign currency exchange contracts, sold | 2,291,876 |
| | |
(a) Forward foreign currency exchange contracts are reported as the average ending monthly currency amount purchased or sold. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Dividend & Income Builder Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI World IndexSM | MSCI World IndexSM reflects the equity market performance of global developed markets. |
75% MSCI World / 25% BBgBarc Global Agg Credit (USD Hedged) Index | 75% MSCI World / 25% BBgBarc Global Agg Credit (USD Hedged) Index is an internally-calculated, hypothetical combination of total returns from the MSCI World IndexSM (75%) and the Bloomberg Barclays Global Aggregate Credit Index (USD Hedged) (25%). |
| | |
ADR | American Depositary Receipt |
ICE | Intercontinental Exchange |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
REG | Registered |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the year ended June 30, 2021 is $8,157,488, which represents 5.1% of net assets. |
| | |
* | Non-income producing security. |
| | |
‡ | Variable or floating rate security. Rate shown is the current rate as of June 30, 2021. Certain variable rate securities are not based on a published reference rate and spread; they are determined by the issuer or agent and current market conditions. Reference rate is as of reset date and may vary by security, which may not indicate a reference rate and/or spread in their description. |
| | |
ºº | Rate shown is the 7-day yield as of June 30, 2021. |
| | |
µ | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. The date indicated, if any, represents the next call date. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
Janus Henderson Dividend & Income Builder Fund
Notes to Schedule of Investments and Other Information
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Corporate Bonds | $ | - | $ | 17,593,021 | $ | - |
Common Stocks | | 133,290,063 | | - | | - |
Preferred Stocks | | - | | 4,878,403 | | - |
Investment Companies | | - | | 4,002,763 | | - |
Total Assets | $ | 133,290,063 | $ | 26,474,187 | $ | - |
| | | | | | | |
Janus Henderson Dividend & Income Builder Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $127,816,873) | | $ | 155,761,487 | |
| Affiliated investments, at value (cost $4,002,763) | | | 4,002,763 | |
| Cash denominated in foreign currency (cost $19,453) | | | 19,453 | |
| Non-interested Trustees' deferred compensation | | | 3,884 | |
| Receivables: | | | | |
| | Foreign tax reclaims | | | 671,629 | |
| | Dividends | | | 560,740 | |
| | Fund shares sold | | | 284,473 | |
| | Interest | | | 204,445 | |
| | Investments sold | | | 155,029 | |
| | Dividends from affiliates | | | 203 | |
| Other assets | | | 19,778 | |
Total Assets | | | 161,683,884 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 633,996 | |
| | Investments purchased | | | 307,600 | |
| | Advisory fees | | | 72,572 | |
| | Professional fees | | | 49,862 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 21,903 | |
| | Dividends | | | 20,754 | |
| | Transfer agent fees and expenses | | | 20,626 | |
| | Non-interested Trustees' deferred compensation fees | | | 3,884 | |
| | Custodian fees | | | 1,273 | |
| | Non-interested Trustees' fees and expenses | | | 633 | |
| | Affiliated fund administration fees payable | | | 334 | |
| | Accrued expenses and other payables | | | 35,909 | |
Total Liabilities | | | 1,169,346 | |
Net Assets | | $ | 160,514,538 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Dividend & Income Builder Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 130,691,878 | |
| Total distributable earnings (loss) | | | 29,822,660 | |
Total Net Assets | | $ | 160,514,538 | |
Net Assets - Class A Shares | | $ | 33,270,200 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,243,284 | |
Net Asset Value Per Share(1) | | $ | 14.83 | |
Maximum Offering Price Per Share(2) | | $ | 15.73 | |
Net Assets - Class C Shares | | $ | 17,760,449 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,225,454 | |
Net Asset Value Per Share(1) | | $ | 14.49 | |
Net Assets - Class D Shares | | $ | 11,876,917 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 800,481 | |
Net Asset Value Per Share | | $ | 14.84 | |
Net Assets - Class I Shares | | $ | 68,415,505 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,602,594 | |
Net Asset Value Per Share | | $ | 14.86 | |
Net Assets - Class N Shares | | $ | 688,080 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 46,388 | |
Net Asset Value Per Share | | $ | 14.83 | |
Net Assets - Class S Shares | | $ | 64,555 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,367 | |
Net Asset Value Per Share | | $ | 14.78 | |
Net Assets - Class T Shares | | $ | 28,438,832 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,920,053 | |
Net Asset Value Per Share | | $ | 14.81 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Dividend & Income Builder Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 7,926,475 | |
| Interest | | 1,045,444 | |
| Dividends from affiliates | | 1,911 | |
| Other income | | 44,789 | |
| Foreign tax withheld | | (600,561) | |
Total Investment Income | | 8,418,058 | |
Expenses: | | | |
| Advisory fees | | 1,220,042 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 71,992 | |
| | Class C Shares | | 188,918 | |
| | Class S Shares | | (24) | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 9,860 | |
| | Class S Shares | | 147 | |
| | Class T Shares | | 66,452 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 15,036 | |
| | Class C Shares | | 11,920 | |
| | Class I Shares | | 50,847 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,870 | |
| | Class C Shares | | 1,209 | |
| | Class D Shares | | 2,397 | |
| | Class I Shares | | 3,531 | |
| | Class N Shares | | 20 | |
| | Class S Shares | | 3 | |
| | Class T Shares | | 361 | |
| Registration fees | | 120,641 | |
| Professional fees | | 54,077 | |
| Custodian fees | | 18,732 | |
| Shareholder reports expense | | 6,707 | |
| Affiliated fund administration fees | | 4,543 | |
| Non-interested Trustees’ fees and expenses | | 2,648 | |
| Other expenses | | 85,574 | |
Total Expenses | | 1,937,503 | |
Less: Excess Expense Reimbursement and Waivers | | (146,891) | |
Net Expenses | | 1,790,612 | |
Net Investment Income/(Loss) | | 6,627,446 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Dividend & Income Builder Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 10,285,082 | |
| Investments in affiliates | | 120 | |
| Forward foreign currency exchange contracts | | (487,111) | |
Total Net Realized Gain/(Loss) on Investments | | 9,798,091 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 19,139,614 | |
| Forward foreign currency exchange contracts | | (74,825) | |
Total Change in Unrealized Net Appreciation/Depreciation | | 19,064,789 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 35,490,326 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson Dividend & Income Builder Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 6,627,446 | | $ | 4,920,471 | |
| Net realized gain/(loss) on investments | | 9,798,091 | | | (7,941,757) | |
| Change in unrealized net appreciation/depreciation | | 19,064,789 | | | (2,763,455) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 35,490,326 | | | (5,784,741) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (922,789) | | | (964,075) | |
| | Class C Shares | | (535,090) | | | (694,241) | |
| | Class D Shares | | (289,026) | | | (237,438) | |
| | Class I Shares | | (2,454,818) | | | (2,780,006) | |
| | Class N Shares | | (19,650) | | | (18,149) | |
| | Class S Shares | | (2,013) | | | (1,788) | |
| | Class T Shares | | (833,130) | | | (691,006) | |
Net Decrease from Dividends and Distributions to Shareholders | | (5,056,516) | | | (5,386,703) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 2,588,997 | | | (4,071,478) | |
| | Class C Shares | | (6,954,888) | | | (7,631,457) | |
| | Class D Shares | | 3,531,028 | | | 462,340 | |
| | Class I Shares | | (20,975,340) | | | (8,528,730) | |
| | Class N Shares | | 106,694 | | | (80,830) | |
| | Class S Shares | | 2,013 | | | 1,788 | |
| | Class T Shares | | (2,825,346) | | | 11,466,641 | |
Net Increase/(Decrease) from Capital Share Transactions | | (24,526,842) | | | (8,381,726) | |
Net Increase/(Decrease) in Net Assets | | 5,906,968 | | | (19,553,170) | |
Net Assets: | | | | | | |
| Beginning of period | | 154,607,570 | | | 174,160,740 | |
| End of period | $ | 160,514,538 | | $ | 154,607,570 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $12.31 | | | $13.09 | | | $13.18 | | | $12.94 | | | $12.16 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.56 | | | 0.36 | | | 0.42 | | | 0.36 | | | 0.38 | |
| | Net realized and unrealized gain/(loss) | | 2.40 | | | (0.72) | | | (0.03) | | | 0.24 | | | 0.75 | |
| Total from Investment Operations | | 2.96 | | | (0.36) | | | 0.39 | | | 0.60 | | | 1.13 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.44) | | | (0.42) | | | (0.37) | | | (0.36) | | | (0.35) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.11) | | | — | | | — | |
| Total Dividends and Distributions | | (0.44) | | | (0.42) | | | (0.48) | | | (0.36) | | | (0.35) | |
| Net Asset Value, End of Period | | $14.83 | | | $12.31 | | | $13.09 | | | $13.18 | | | $12.94 | |
| Total Return* | | 24.38% | | | (2.79)% | | | 3.14% | | | 4.63% | | | 9.44% | |
| Net Assets, End of Period (in thousands) | | $33,270 | | | $25,517 | | | $32,262 | | | $29,294 | | | $25,824 | |
| Average Net Assets for the Period (in thousands) | | $28,797 | | | $30,893 | | | $30,675 | | | $27,827 | | | $29,932 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.24% | | | 1.25% | | | 1.32% | | | 1.14% | | | 1.23% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.15% | | | 1.16% | | | 1.17% | | | 1.14% | | | 1.23% | |
| | Ratio of Net Investment Income/(Loss) | | 4.06% | | | 2.83% | | | 3.23% | | | 2.71% | | | 3.36% | |
| Portfolio Turnover Rate | | 52% | | | 59% | | | 44% | | | 36% | | | 55% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $12.07 | | | $12.89 | | | $13.01 | | | $12.81 | | | $12.05 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.44 | | | 0.27 | | | 0.31 | | | 0.25 | | | 0.30 | |
| | Net realized and unrealized gain/(loss) | | 2.36 | | | (0.74) | | | (0.01) | | | 0.24 | | | 0.73 | |
| Total from Investment Operations | | 2.80 | | | (0.47) | | | 0.30 | | | 0.49 | | | 1.03 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.38) | | | (0.35) | | | (0.31) | | | (0.29) | | | (0.27) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.11) | | | — | | | — | |
| Total Dividends and Distributions | | (0.38) | | | (0.35) | | | (0.42) | | | (0.29) | | | (0.27) | |
| Net Asset Value, End of Period | | $14.49 | | | $12.07 | | | $12.89 | | | $13.01 | | | $12.81 | |
| Total Return* | | 23.48% | | | (3.68)% | | | 2.41% | | | 3.85% | | | 8.62% | |
| Net Assets, End of Period (in thousands) | | $17,760 | | | $21,018 | | | $30,356 | | | $29,203 | | | $30,671 | |
| Average Net Assets for the Period (in thousands) | | $19,671 | | | $25,897 | | | $30,095 | | | $31,115 | | | $32,821 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.96% | | | 1.98% | | | 2.06% | | | 1.91% | | | 2.01% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.87% | | | 1.89% | | | 1.91% | | | 1.91% | | | 2.01% | |
| | Ratio of Net Investment Income/(Loss) | | 3.24% | | | 2.15% | | | 2.48% | | | 1.85% | | | 2.68% | |
| Portfolio Turnover Rate | | 52% | | | 59% | | | 44% | | | 36% | | | 55% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | JUNE 30, 2021 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
| | | | | | | |
Class A Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2016 | |
| Net Asset Value, Beginning of Period | | $12.50 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.40 | |
| | Net realized and unrealized gain/(loss) | | (0.40) | |
| Total from Investment Operations | | — | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.34) | |
| Total Dividends and Distributions | | (0.34) | |
| Net Asset Value, End of Period | | $12.16 | |
| Total Return* | | 0.19% | |
| Net Assets, End of Period (in thousands) | | $40,869 | |
| Average Net Assets for the Period (in thousands) | | $30,357 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.27%(2) | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.27%(3) | |
| | Ratio of Net Investment Income/(Loss) | | 3.37%(4) | |
| Portfolio Turnover Rate | | 39% | |
| | | | | | | |
| | | | | | | |
Class C Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2016 | |
| Net Asset Value, Beginning of Period | | $12.40 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.30 | |
| | Net realized and unrealized gain/(loss) | | (0.39) | |
| Total from Investment Operations | | (0.09) | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.26) | |
| Total Dividends and Distributions | | (0.26) | |
| Net Asset Value, End of Period | | $12.05 | |
| Total Return* | | (0.58)% | |
| Net Assets, End of Period (in thousands) | | $33,327 | |
| Average Net Assets for the Period (in thousands) | | $24,477 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 2.04%(2) | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.03%(3) | |
| | Ratio of Net Investment Income/(Loss) | | 2.55%(4) | |
| Portfolio Turnover Rate | | 39% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The Ratio of Gross Expenses include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses would have been 0.02% higher had the custodian not reimbursed the Fund. (3) The Ratio of Net Expenses (After Waivers and Expense Offsets) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 0.01% higher had the custodian not reimbursed the Fund. (4) The Ratio of Net Investment Income/(Loss) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Investment Income/(Loss) would have been 0.01% lower had the custodian not reimbursed the Fund. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $12.31 | | | $13.09 | | | $13.17 | | | $12.93 | | | $13.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.60 | | | 0.41 | | | 0.42 | | | 0.46 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | 2.38 | | | (0.75) | | | —(3) | | | 0.16 | | | (0.17) | |
| Total from Investment Operations | | 2.98 | | | (0.34) | | | 0.42 | | | 0.62 | | | (0.13) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.45) | | | (0.44) | | | (0.39) | | | (0.38) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.11) | | | — | | | — | |
| Total Dividends and Distributions | | (0.45) | | | (0.44) | | | (0.50) | | | (0.38) | | | (0.12) | |
| Net Asset Value, End of Period | | $14.84 | | | $12.31 | | | $13.09 | | | $13.17 | | | $12.93 | |
| Total Return* | | 24.58% | | | (2.66)% | | | 3.34% | | | 4.77% | | | (0.96)% | |
| Net Assets, End of Period (in thousands) | | $11,877 | | | $6,861 | | | $6,889 | | | $8,072 | | | $472 | |
| Average Net Assets for the Period (in thousands) | | $8,639 | | | $7,041 | | | $7,362 | | | $4,665 | | | $343 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.12% | | | 1.20% | | | 1.31% | | | 1.02% | | | 1.10% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.98% | | | 0.99% | | | 1.01% | | | 0.99% | | | 1.05% | |
| | Ratio of Net Investment Income/(Loss) | | 4.29% | | | 3.20% | | | 3.26% | | | 3.47% | | | 4.27% | |
| Portfolio Turnover Rate | | 52% | | | 59% | | | 44% | | | 36% | | | 55% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(4) | |
| Net Asset Value, Beginning of Period | | $12.32 | | | $13.11 | | | $13.19 | | | $12.94 | | | $12.16 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.59 | | | 0.41 | | | 0.43 | | | 0.40 | | | 0.45 | |
| | Net realized and unrealized gain/(loss) | | 2.40 | | | (0.76) | | | —(3) | | | 0.23 | | | 0.71 | |
| Total from Investment Operations | | 2.99 | | | (0.35) | | | 0.43 | | | 0.63 | | | 1.16 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.45) | | | (0.44) | | | (0.40) | | | (0.38) | | | (0.38) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.11) | | | — | | | — | |
| Total Dividends and Distributions | | (0.45) | | | (0.44) | | | (0.51) | | | (0.38) | | | (0.38) | |
| Net Asset Value, End of Period | | $14.86 | | | $12.32 | | | $13.11 | | | $13.19 | | | $12.94 | |
| Total Return* | | 24.68% | | | (2.68)% | | | 3.41% | | | 4.86% | | | 9.70% | |
| Net Assets, End of Period (in thousands) | | $68,416 | | | $74,386 | | | $88,458 | | | $100,825 | | | $78,630 | |
| Average Net Assets for the Period (in thousands) | | $78,344 | | | $81,753 | | | $97,766 | | | $92,797 | | | $66,190 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.99% | | | 1.00% | | | 1.06% | | | 0.91% | | | 1.00% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.91% | | | 0.91% | | | 0.92% | | | 0.91% | | | 1.00% | |
| | Ratio of Net Investment Income/(Loss) | | 4.27% | | | 3.19% | | | 3.35% | | | 2.94% | | | 3.97% | |
| Portfolio Turnover Rate | | 52% | | | 59% | | | 44% | | | 36% | | | 55% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through June 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. (4) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. |
| | |
See Notes to Financial Statements. |
| |
22 | JUNE 30, 2021 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
| | | | | | | |
Class I Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2016 | |
| Net Asset Value, Beginning of Period | | $12.49 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.40 | |
| | Net realized and unrealized gain/(loss) | | (0.37) | |
| Total from Investment Operations | | 0.03 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.36) | |
| Total Dividends and Distributions | | (0.36) | |
| Net Asset Value, End of Period | | $12.16 | |
| Total Return* | | 0.48% | |
| Net Assets, End of Period (in thousands) | | $46,454 | |
| Average Net Assets for the Period (in thousands) | | $36,087 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.04%(2) | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.04%(3) | |
| | Ratio of Net Investment Income/(Loss) | | 3.37%(4) | |
| Portfolio Turnover Rate | | 39% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The Ratio of Gross Expenses include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses would have been 0.02% higher had the custodian not reimbursed the Fund. (3) The Ratio of Net Expenses (After Waivers and Expense Offsets) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 0.01% higher had the custodian not reimbursed the Fund. (4) The Ratio of Net Investment Income/(Loss) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Investment Income/(Loss) would have been 0.01% lower had the custodian not reimbursed the Fund. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $12.30 | | | $13.08 | | | $13.16 | | | $12.91 | | | $12.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.61 | | | 0.41 | | | 0.42 | | | 0.45 | | | 0.40 | |
| | Net realized and unrealized gain/(loss) | | 2.38 | | | (0.74) | | | 0.01 | | | 0.19 | | | 0.73 | |
| Total from Investment Operations | | 2.99 | | | (0.33) | | | 0.43 | | | 0.64 | | | 1.13 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.46) | | | (0.45) | | | (0.40) | | | (0.39) | | | (0.39) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.11) | | | — | | | — | |
| Total Dividends and Distributions | | (0.46) | | | (0.45) | | | (0.51) | | | (0.39) | | | (0.39) | |
| Net Asset Value, End of Period | | $14.83 | | | $12.30 | | | $13.08 | | | $13.16 | | | $12.91 | |
| Total Return* | | 24.71% | | | (2.56)% | | | 3.48% | | | 4.94% | | | 9.44% | |
| Net Assets, End of Period (in thousands) | | $688 | | | $477 | | | $590 | | | $857 | | | $50 | |
| Average Net Assets for the Period (in thousands) | | $582 | | | $518 | | | $723 | | | $557 | | | $281 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.44% | | | 1.51% | | | 1.39% | | | 0.99% | | | 1.12% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.84% | | | 0.85% | | | 0.85% | | | 0.86% | | | 1.06% | |
| | Ratio of Net Investment Income/(Loss) | | 4.41% | | | 3.22% | | | 3.28% | | | 3.40% | | | 3.58% | |
| Portfolio Turnover Rate | | 52% | | | 59% | | | 44% | | | 36% | | | 55% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(3) | |
| Net Asset Value, Beginning of Period | | | $12.27 | | | $13.06 | | | $13.17 | | | $12.93 | | | $13.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | | 0.59 | | | 0.39 | | | 0.43 | | | 0.34 | | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | | 2.39 | | | (0.75) | | | (0.02) | | | 0.25 | | | (0.16) | |
| Total from Investment Operations | | | 2.98 | | | (0.36) | | | 0.41 | | | 0.59 | | | (0.13) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | | (0.47) | | | (0.43) | | | (0.41) | | | (0.35) | | | (0.12) | |
| | Distributions (from capital gains) | | | — | | | — | | | (0.11) | | | — | | | — | |
| Total Dividends and Distributions | | | (0.47) | | | (0.43) | | | (0.52) | | | (0.35) | | | (0.12) | |
| Net Asset Value, End of Period | | | $14.78 | | | $12.27 | | | $13.06 | | | $13.17 | | | $12.93 | |
| Total Return* | | | 24.68% | | | (2.80)% | | | 3.28% | | | 4.52% | | | (0.97)% | |
| Net Assets, End of Period (in thousands) | | | $65 | | | $52 | | | $53 | | | $52 | | | $49 | |
| Average Net Assets for the Period (in thousands) | | | $59 | | | $53 | | | $51 | | | $52 | | | $50 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | | 6.21% | | | 6.96% | | | 7.11% | | | 2.77% | | | 1.44% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | | 0.91% | | | 1.08% | | | 1.04% | | | 1.21% | | | 1.44% | |
| | Ratio of Net Investment Income/(Loss) | | | 4.27% | | | 3.04% | | | 3.32% | | | 2.56% | | | 3.22% | |
| Portfolio Turnover Rate | | | 52% | | | 59% | | | 44% | | | 36% | | | 55% | |
| | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2016 through June 30, 2017. The Fund changed its fiscal year end from July 31 to June 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Period from June 5, 2017 (inception date) through June 30, 2017. |
| | |
See Notes to Financial Statements. |
| |
24 | JUNE 30, 2021 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
| | | | | | | |
Class N Shares | | | |
For a share outstanding during the period ended July 31 | | 2016(1) | |
| Net Asset Value, Beginning of Period | | $11.95 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.28 | |
| | Net realized and unrealized gain/(loss) | | 0.17 | |
| Total from Investment Operations | | 0.45 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.23) | |
| Total Dividends and Distributions | | (0.23) | |
| Net Asset Value, End of Period | | $12.17 | |
| Total Return* | | 3.93% | |
| Net Assets, End of Period (in thousands) | | $403 | |
| Average Net Assets for the Period (in thousands) | | $406 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.09%(3) | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03%(4) | |
| | Ratio of Net Investment Income/(Loss) | | 3.51%(5) | |
| Portfolio Turnover Rate | | 39% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from November 30, 2015 (inception date) through July 31, 2016. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) The Ratio of Gross Expenses include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Gross Expenses would have been 0.02% higher had the custodian not reimbursed the Fund. (4) The Ratio of Net Expenses (After Waivers and Expense Offsets) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 0.01% higher had the custodian not reimbursed the Fund. (5) The Ratio of Net Investment Income/(Loss) include a reimbursement of prior period custodian out-of-pocket expenses. The Ratio of Net Investment Income/(Loss) would have been 0.01% lower had the custodian not reimbursed the Fund. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Dividend & Income Builder Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $12.29 | | | $13.08 | | | $13.16 | | | $12.93 | | | $13.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.56 | | | 0.41 | | | 0.43 | | | 0.49 | | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | 2.40 | | | (0.77) | | | (0.02) | | | 0.11 | | | (0.16) | |
| Total from Investment Operations | | 2.96 | | | (0.36) | | | 0.41 | | | 0.60 | | | (0.13) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.44) | | | (0.43) | | | (0.38) | | | (0.37) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.11) | | | — | | | — | |
| Total Dividends and Distributions | | (0.44) | | | (0.43) | | | (0.49) | | | (0.37) | | | (0.12) | |
| Net Asset Value, End of Period | | $14.81 | | | $12.29 | | | $13.08 | | | $13.16 | | | $12.93 | |
| Total Return* | | 24.45% | | | (2.80)% | | | 3.29% | | | 4.66% | | | (0.96)% | |
| Net Assets, End of Period (in thousands) | | $28,439 | | | $26,296 | | | $15,553 | | | $9,755 | | | $59 | |
| Average Net Assets for the Period (in thousands) | | $26,581 | | | $19,478 | | | $11,844 | | | $3,644 | | | $52 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.18% | | | 1.21% | | | 1.28% | | | 1.13% | | | 1.20% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.09% | | | 1.09% | | | 1.10% | | | 1.11% | | | 1.19% | |
| | Ratio of Net Investment Income/(Loss) | | 4.06% | | | 3.29% | | | 3.36% | | | 3.75% | | | 3.48% | |
| Portfolio Turnover Rate | | 52% | | | 59% | | | 44% | | | 36% | | | 55% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through June 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
26 | JUNE 30, 2021 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Dividend & Income Builder Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks to provide current income from a portfolio of securities that exceeds the average yield on global stocks, and aims to provide a growing stream of income per share over time. The Fund's secondary objective is to seek to provide long-term capital appreciation. The Fund is classified as diversified, as defined in the 1940 Act.
Pursuant to the Agreement and Plan of Reorganization, the Fund acquired all the assets and liabilities of the Henderson Dividend & Income Builder Fund (the “Predecessor Fund”), a series of Henderson Global Funds, in exchange for Class A, Class C, Class I and Class N Fund shares having an aggregate net asset value equal to the value of the aggregate net assets of the same share class of the Predecessor Fund (except that Class R6 Predecessor Fund shares were exchanged for Class N Fund shares) (the “Reorganization”). The Reorganization occurred at the close of business on June 2, 2017.
The Predecessor Fund and the Fund had identical investment objectives and substantially similar investment policies and principal risks. For financial reporting purposes, the Predecessor Fund’s financial and performance history prior to the Reorganization is carried forward and reflected in the Fund’s financial highlights.
The last fiscal year end of the Predecessor Fund was July 31, 2016. Subsequent to July 31, 2016, the Fund changed its fiscal year end to June 30, 2017, to reflect the fiscal year end of certain funds of the Trust.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to,
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with United States of America generally accepted accounting principles ("US GAAP").
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends are declared and distributed quarterly for the fund. Realized capital gains, if any, are declared and distributed in December. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the year ended June 30, 2021 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
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Notes to Financial Statements
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the 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.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital's ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE shall be used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a forward currency contract is reported on the Statement of Operations (if applicable).
During the year, the Fund entered into forward currency contracts with the obligation to purchase foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
During the year, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
There were no forward foreign currency exchange contracts held at June 30, 2021.
3. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
Within the parameters of its specific investment policies, the Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging market countries.” Such countries include but are not limited to countries included in the MSCI Emerging Markets IndexSM. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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. Similarly, issuers in such markets may not be subject to regulatory, accounting, auditing, and financial reporting and recordkeeping standards comparable to those to which U.S. companies are subject. There is a risk in developing countries that a current or future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation,
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
imposition or enforcement of foreign ownership limits, seizure, nationalization, sanctions or imposition of restrictions by various governmental entities on investment and trading, or creation of government monopolies, any of which may have a detrimental effect on the Fund’s investments. In addition, the Fund’s investments may be denominated in foreign currencies and therefore, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Fund’s investments. To the extent that the Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on the Fund’s performance. Developing countries may also experience a higher level of exposure and vulnerability to the adverse effects of climate change. This can be attributed to both the geographic location of emerging market countries and/or a country’s lack of access to technology or resources to adjust and adapt to its effects. An increased occurrence and severity of natural disasters and extreme weather events such as droughts and decreased crop yields, heat waves, flooding and rising sea levels, and increased spread of disease, could cause harmful effects to the performance of affected economies. Additionally, foreign and emerging market risks, including, but not limited to, price controls, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, nationalization, and restrictions on repatriation of assets may be heightened to the extent the Fund invests in Chinese local market securities.
Real Estate Investing
The Fund may invest 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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
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Average Daily Net Assets of the Portfolio | Contractual Investment Advisory Fee (%) |
First $1 Billion | 0.75 |
Next $1 Billion | 0.65 |
Above $2 Billion | 0.55 |
The Fund’s actual investment advisory fee rate for the reporting period was 0.75% of average annual net assets before any applicable waivers.
Janus Capital has entered into a personnel-sharing arrangement with its foreign (non-U.S.) affiliates, Henderson Global Investors Limited, Henderson Global Investors (Japan) Ltd., and Henderson Global Investors (Singapore) Ltd. (collectively, “HGIL”), pursuant to which HGIL and certain employees of HGIL serve as “associated persons” of Janus Capital. In this capacity, such employees of HGIL are subject to the oversight and supervision of Janus Capital and may provide portfolio management, research, and related services to the Fund on behalf of Janus Capital.
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.84% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is
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Notes to Financial Statements
not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
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Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $7,848.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class A Shares paid CDSCs of $2,268 to Janus Henderson Distributors.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $72.
As of June 30, 2021, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 10 | | -* | | |
Class S Shares | 100 | | -* | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, and foreign currency contract adjustments. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 2,341,045 | $ - | $ (421,269) | $ - | $ - | $ 15,513 | $ 27,887,371 | |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended June 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $ (421,269) | $ - | $ (421,269) | | |
During the year ended June 30, 2021, capital loss carryovers of $9,769,966 were utilized by the Fund.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 131,876,879 | $32,034,536 | $ (4,147,165) | $ 27,887,371 |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | �� |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 5,056,516 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 5,386,703 | $ - | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ (7,027) | $ (38,788) | $ 45,815 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 469,438 | $ 6,617,218 | | 1,212,362 | $16,388,488 |
Reinvested dividends and distributions | 65,189 | 889,976 | | 74,405 | 942,035 |
Shares repurchased | (364,176) | (4,918,197) | | (1,677,990) | (21,402,001) |
Net Increase/(Decrease) | 170,451 | $ 2,588,997 | | (391,223) | $ (4,071,478) |
Class C Shares: | | | | | |
Shares sold | 74,757 | $ 1,012,971 | | 901,902 | $11,971,138 |
Reinvested dividends and distributions | 38,611 | 512,302 | | 51,039 | 633,948 |
Shares repurchased | (628,893) | (8,480,161) | | (1,567,113) | (20,236,543) |
Net Increase/(Decrease) | (515,525) | $ (6,954,888) | | (614,172) | $ (7,631,457) |
Class D Shares: | | | | | |
Shares sold | 388,944 | $ 5,562,595 | | 224,243 | $ 2,855,505 |
Reinvested dividends and distributions | 20,422 | 281,153 | | 18,312 | 230,298 |
Shares repurchased | (166,391) | (2,312,720) | | (211,158) | (2,623,463) |
Net Increase/(Decrease) | 242,975 | $ 3,531,028 | | 31,397 | $ 462,340 |
Class I Shares: | | | | | |
Shares sold | 892,094 | $ 12,486,388 | | 1,930,455 | $23,922,407 |
Reinvested dividends and distributions | 179,858 | 2,440,611 | | 218,900 | 2,764,158 |
Shares repurchased | (2,505,176) | (35,902,339) | | (2,861,358) | (35,215,295) |
Net Increase/(Decrease) | (1,433,224) | $(20,975,340) | | (712,003) | $ (8,528,730) |
Class N Shares: | | | | | |
Shares sold | 8,160 | $ 114,242 | | 5,188 | $ 64,840 |
Reinvested dividends and distributions | 1,437 | 19,650 | | 1,438 | 18,149 |
Shares repurchased | (1,994) | (27,198) | | (12,953) | (163,819) |
Net Increase/(Decrease) | 7,603 | $ 106,694 | | (6,327) | $ (80,830) |
Class S Shares: | | | | | |
Shares sold | - | $ - | | - | $ - |
Reinvested dividends and distributions | 148 | 2,013 | | 141 | 1,788 |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 148 | $ 2,013 | | 141 | $ 1,788 |
Class T Shares: | | | | | |
Shares sold | 815,808 | $ 11,586,334 | | 1,136,498 | $13,784,389 |
Reinvested dividends and distributions | 61,123 | 829,912 | | 55,195 | 689,868 |
Shares repurchased | (1,096,586) | (15,241,592) | | (240,981) | (3,007,616) |
Net Increase/(Decrease) | (219,655) | $ (2,825,346) | | 950,712 | $11,466,641 |
7. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$81,839,986 | $ 105,344,330 | $ - | $ 1,086,406 |
Janus Henderson Dividend & Income Builder Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Dividend & Income Builder Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Dividend & Income Builder Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Dividend & Income Builder Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the “Fund”) as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the periods indicated therein beginning on or after August 1, 2016 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the periods indicated therein beginning on or after August 1, 2016 in conformity with accounting principles generally accepted in the United States of America.
The financial statements of the Fund as of and for the year ended July 31, 2016 and the financial highlights for each of the periods ended on or prior to July 31, 2016 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated September 23, 2016 expressed an unqualified opinion on those financial statements and financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Dividend & Income Builder Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Dividend & Income Builder Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Dividend & Income Builder Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Dividend & Income Builder Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Dividend & Income Builder Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Section 163(j) Interest Dividend | 12% |
Foreign Taxes Paid | $600,111 |
Foreign Source Income | $5,231,752 |
Dividends Received Deduction Percentage | 15% |
Qualified Dividend Income Percentage | 93% |
Janus Henderson Dividend & Income Builder Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Dividend & Income Builder Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Dividend & Income Builder Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Dividend & Income Builder Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Dividend & Income Builder Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Dividend & Income Builder Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Dividend & Income Builder Fund
Trustees and Officers (unaudited)
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OFFICERS | | | |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Faizan Baig
151 Detroit Street
Denver, CO 80206
DOB: 1969 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Dividend & Income Builder Fund | 10/20-Present | Portfolio Manager for other Janus Henderson accounts. |
Alex Crooke
151 Detroit Street
Denver, CO 80206
DOB: 1969 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Dividend & Income Builder Fund | 8/12-Present | Co-Head of Equities - EMEA and Asia Pacific of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. Formerly, Head of Global Equity Income and Specialist Equities (2013-2018). |
Ben Lofthouse
151 Detroit Street
Denver, CO 80206
DOB: 1976 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Dividend & Income Builder Fund | 11/14-Present | Head of Global Equity Income of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Jenna Barnard
151 Detroit Street
Denver, CO 80206
DOB: 1980 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Dividend & Income Builder Fund | 8/12-Present | Co-Head of Strategic Fixed Income of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
John Pattullo
151 Detroit Street
Denver, CO 80206
DOB: 1970 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Dividend & Income Builder Fund | 8/12-Present | Co-Head of Strategic Fixed Income of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Janus Henderson Dividend & Income Builder Fund
Trustees and Officers (unaudited)
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OFFICERS | | | |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
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Janus Henderson Dividend & Income Builder Fund
Trustees and Officers (unaudited)
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OFFICERS | | | |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Dividend & Income Builder Fund
Notes
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Janus Henderson Dividend & Income Builder Fund
Notes
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Janus Henderson Dividend & Income Builder Fund
Notes
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
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| | | ANNUAL REPORT June 30, 2021 |
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| | Janus Henderson Emerging Markets Managed Volatility Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Emerging Markets Managed Volatility Fund
Janus Henderson Emerging Markets Managed Volatility Fund (unaudited)
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FUND SNAPSHOT Intech’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | | | | | sub-advised by Intech Investment Management LLC |
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PERFORMANCE OVERVIEW
For the 12-month period ended June 30, 2021, the Janus Henderson Emerging Markets Managed Volatility Fund returned 17.32% for its Class I Shares. This compares to the 40.90% return posted by the MSCI Emerging Markets Index, the Fund’s benchmark.
INVESTMENT STRATEGY
Intech’s mathematical investment process is designed to determine potentially more efficient equity weightings of the securities in the benchmark index, utilizing a specific mathematical optimization and disciplined rebalancing routine. Rather than trying to predict the future direction of stock prices, the process seeks to use the volatility and correlation characteristics of stocks to construct portfolios.
The investment process begins with the stocks in the MSCI Emerging Markets Index. Intech’s investment process aims to capture stocks’ natural volatility through a rebalancing mechanism based on estimates of relative volatility and correlation in order to outperform the benchmark index over the long term. Within specific risk constraints, the investment process will tend to balance risk reduction with diversification potential captured through periodic rebalancing. Once the target proportions are determined and the portfolio is constructed, it is then rebalanced to those target proportions and re-optimized on a periodic basis. The Janus Henderson Emerging Markets Managed Volatility Fund focuses on seeking an excess return above the benchmark, while also providing downside protection in down markets with upside participation in rising markets for greater performance consistency across changing market environments.
PERFORMANCE REVIEW
Emerging equity markets rebounded strongly and quickly recovered the losses suffered from the drawdown amid the COVID crisis with the MSCI Emerging Markets Index gaining over 40% over the past 12 months. The sharp rally that began in the second half of 2020 continued into 2021 despite concerns of inflation and other uncertainty surrounding stimulus efforts around the globe.
The Fund was negatively impacted by its overall defensive positioning in what was generally a risk-on environment over the past 12 months. In particular, an average overweight to lower-beta stocks and underweight to higher-beta stocks was a headwind on relative performance as higher-beta stocks generally outperformed over the past 12 months.
The Fund was also negatively impacted by its smaller size positioning as larger-capitalization stocks outperformed the smaller-capitalization stocks within the index over the past 12 months. From a sector perspective, the Fund was negatively impacted by an average underweight to information technology, which was the strongest-performing segment during the period, as well as an average overweight to the defensive consumer staples sector. Adverse stock selection effects also detracted from the Fund’s relative performance during the period, especially within the communication services and information technology sectors.
OUTLOOK
Because Intech does not conduct traditional economic or fundamental analysis, Intech has no view on individual stocks, sectors, economic, or market conditions.
Managing downside exposure potentially allows for returns to compound and improve risk-adjusted returns over time. Over the long term, we believe that by providing downside protection in down markets with upside participation in rising markets, the Fund will achieve its investment objective of producing an excess return over the benchmark with lower absolute risk. Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. As Intech’s ongoing research efforts yield modest improvements, we will continue implementing changes that we believe are likely
Janus Henderson Emerging Markets Managed Volatility Fund (unaudited)
to improve the long-term results for our fund shareholders.
Thank you for your investment in Janus Henderson Emerging Markets Managed Volatility Fund.
Janus Henderson Emerging Markets Managed Volatility Fund (unaudited)
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5 Largest Equity Holdings - (% of Net Assets) |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 7.7% |
Samsung Electronics Co Ltd | |
Technology Hardware, Storage & Peripherals | 5.1% |
Chunghwa Telecom Co Ltd | |
Diversified Telecommunication Services | 4.7% |
Malayan Banking Bhd | |
Banks | 4.5% |
Tencent Holdings Ltd | |
Interactive Media & Services | 4.3% |
| | 26.3% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.2% | |
Preferred Stocks | | 5.1% | |
Corporate Bonds | | 0.0% | |
Other | | (1.3)% |
| | | 100.0% |
Emerging markets comprised 101.3% of total net assets.
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of June 30, 2021 
| As of June 30, 2020 
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Janus Henderson Emerging Markets Managed Volatility Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 16.99% | 7.53% | 5.13% | | | 19.07% | 1.26% |
Class A Shares at MOP | | 10.30% | 6.26% | 4.18% | | | | |
Class C Shares at NAV | | 17.62% | 7.39% | 4.82% | | | 11.62% | 1.87% |
Class C Shares at CDSC | | 16.62% | 7.39% | 4.82% | | | | |
Class D Shares | | 17.39% | 7.78% | 5.35% | | | 5.73% | 1.01% |
Class I Shares | | 17.32% | 7.84% | 5.42% | | | 6.97% | 0.98% |
Class N Shares | | 17.41% | 6.18% | 2.24% | | | 5.61% | 0.87% |
Class S Shares | | 17.34% | 7.66% | 5.20% | | | 10.99% | 1.37% |
Class T Shares | | 17.17% | 7.73% | 5.31% | | | 6.95% | 1.12% |
MSCI Emerging Markets Index | | 40.90% | 13.03% | 8.87% | | | | |
Morningstar Quartile - Class I Shares | | 4th | 4th | 4th | | | | |
Morningstar Ranking - based on total returns for Diversified Emerging Markets Funds | | 802/805 | 632/682 | 558/611 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different
Janus Henderson Emerging Markets Managed Volatility Fund (unaudited)
Performance
risks. Please see the prospectus for more information about risks, holdings and other details.
Intech's focus on managed volatility may keep the Fund from achieving excess returns over its index. The strategy may underperform during certain periods of up markets, and may not achieve the desired level of protection in down markets.
Returns include reinvestment of all dividends and distributionsand do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class N Shares commenced operations on August 4, 2017. Performance shown for periods prior to August 4, 2017 reflects the performance of the Fund’s Class I Shares, calculated using the fees and expenses of Class N Shares, without the effect of any fee and expense limitations or waivers.
If Class N Shares of the Fund had been available during periods prior to August 4, 2017, the performance shown may have been different. The performance shown for periods following the Fund’s commencement Class N Shares reflects the fees and expenses of Class N Shares, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – December 17, 2014
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Emerging Markets Managed Volatility Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $1,008.50 | $6.23 | | $1,000.00 | $1,018.60 | $6.26 | 1.25% |
Class C Shares | $1,000.00 | $1,010.30 | $5.33 | | $1,000.00 | $1,019.49 | $5.36 | 1.07% |
Class D Shares | $1,000.00 | $1,011.20 | $4.94 | | $1,000.00 | $1,019.89 | $4.96 | 0.99% |
Class I Shares | $1,000.00 | $1,010.40 | $5.03 | | $1,000.00 | $1,019.79 | $5.06 | 1.01% |
Class N Shares | $1,000.00 | $1,010.50 | $4.24 | | $1,000.00 | $1,020.58 | $4.26 | 0.85% |
Class S Shares | $1,000.00 | $1,010.40 | $4.89 | | $1,000.00 | $1,019.93 | $4.91 | 0.98% |
Class T Shares | $1,000.00 | $1,009.50 | $5.53 | | $1,000.00 | $1,019.29 | $5.56 | 1.11% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Emerging Markets Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– 0% | | | |
Consumer Non-Cyclical – 0% | | | |
| | Britannia Industries Ltd, 8.0000%, 8/28/22((cost $1) | | 100 | INR | | $1 | |
Common Stocks– 96.2% | | | |
Air Freight & Logistics – 1.4% | | | |
| | ZTO Express Cayman Inc (ADR) | | 3,034 | | | 92,082 | |
Automobiles – 1.3% | | | |
| | Ford Otomotiv Sanayi AS | | 3,466 | | | 67,832 | |
| | Guangzhou Automobile Group Co Ltd | | 22,000 | | | 19,750 | |
| | | 87,582 | |
Banks – 7.2% | | | |
| | Al Rajhi Bank | | 483 | | | 14,296 | |
| | Hong Leong Bank Bhd | | 30,900 | | | 139,385 | |
| | Industrial Bank of Korea | | 3,426 | | | 31,948 | |
| | Malayan Banking Bhd | | 152,200 | | | 297,432 | |
| | | 483,061 | |
Capital Markets – 1.4% | | | |
| | Korea Investment Holdings Co Ltd | | 465 | | | 42,536 | |
| | Meritz Securities Co Ltd | | 11,736 | | | 49,352 | |
| | | 91,888 | |
Chemicals – 3.0% | | | |
| | PhosAgro PJSC (GDR) | | 5,823 | | | 117,858 | |
| | Yanbu National Petrochemical Co | | 4,113 | | | 79,626 | |
| | | 197,484 | |
Commercial Services & Supplies – 1.5% | | | |
| | A-Living Services Co Ltd (144A) | | 19,500 | | | 97,072 | |
Construction Materials – 1.7% | | | |
| | Ambuja Cements Ltd | | 25,519 | | | 116,960 | |
Diversified Financial Services – 0.2% | | | |
| | Rural Electrification Corp Ltd | | 7,208 | | | 14,406 | |
Diversified Telecommunication Services – 6.1% | | | |
| | Bharti Infratel Ltd | | 30,729 | | | 98,668 | |
| | Chunghwa Telecom Co Ltd | | 76,000 | | | 310,983 | |
| | | 409,651 | |
Electric Utilities – 4.4% | | | |
| | Power Grid Corp of India Ltd | | 17,526 | | | 54,800 | |
| | Tenaga Nasional Bhd | | 102,300 | | | 241,329 | |
| | | 296,129 | |
Electronic Equipment, Instruments & Components – 6.2% | | | |
| | Delta Electronics Inc | | 2,000 | | | 21,752 | |
| | Kingboard Laminates Holdings Ltd | | 45,500 | | | 102,087 | |
| | Samsung SDI Co Ltd | | 442 | | | 273,993 | |
| | WPG Holdings Ltd | | 8,000 | | | 14,673 | |
| | | 412,505 | |
Equity Real Estate Investment Trusts (REITs) – 0.2% | | | |
| | Fibra Uno Administracion SA de CV | | 12,118 | | | 13,091 | |
Food Products – 0% | | | |
| | China Huishan Dairy Holdings Co Ltd*,¢ | | 55,000 | | | 0 | |
Gas Utilities – 1.4% | | | |
| | Indraprastha Gas Ltd | | 3,578 | | | 26,850 | |
| | Kunlun Energy Co Ltd | | 32,000 | | | 29,510 | |
| | Petronas Gas Bhd | | 10,000 | | | 37,349 | |
| | | 93,709 | |
Independent Power and Renewable Electricity Producers – 0.2% | | | |
| | Adani Green Energy Ltd* | | 921 | | | 13,939 | |
Industrial Conglomerates – 2.1% | | | |
| | Far Eastern New Century Corp | | 121,000 | | | 138,981 | |
Information Technology Services – 1.4% | | | |
| | TravelSky Technology Ltd | | 42,000 | | | 90,663 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Emerging Markets Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Insurance – 0.2% | | | |
| | Sanlam Ltd | | 3,113 | | | $13,386 | |
Interactive Media & Services – 4.3% | | | |
| | Tencent Holdings Ltd | | 3,800 | | | 285,828 | |
Internet & Direct Marketing Retail – 4.4% | | | |
| | Alibaba Group Holding Ltd* | | 7,736 | | | 219,204 | |
| | Meituan Dianping (144A)* | | 1,600 | | | 66,027 | |
| | Naspers Ltd | | 43 | | | 9,033 | |
| | | 294,264 | |
Machinery – 2.0% | | | |
| | Hyundai Heavy Industries Holdings Co Ltd | | 2,134 | | | 134,180 | |
Metals & Mining – 1.6% | | | |
| | Polymetal International PLC | | 4,946 | | | 106,341 | |
Oil, Gas & Consumable Fuels – 3.8% | | | |
| | Adaro Energy Tbk PT | | 46,800 | | | 3,891 | |
| | PTT PCL | | 19,600 | | | 24,005 | |
| | Rosneft Oil Co PJSC (GDR)* | | 28,940 | | | 223,996 | |
| | | 251,892 | |
Real Estate Management & Development – 8.3% | | | |
| | Agile Group Holdings Ltd | | 56,000 | | | 72,560 | |
| | CIFI Holdings Group Co Ltd | | 108,000 | | | 84,296 | |
| | Land & Houses PCL | | 382,700 | | | 94,936 | |
| | Longfor Group Holdings Ltd (144A) | | 46,500 | | | 260,526 | |
| | Yuexiu Property Co Ltd | | 40,400 | | | 42,564 | |
| | | 554,882 | |
Semiconductor & Semiconductor Equipment – 11.1% | | | |
| | Hanergy Thin Film Power Group - SPV Shares*,¢ | | 52,000 | | | 0 | |
| | MediaTek Inc | | 3,000 | | | 103,589 | |
| | Novatek Microelectronics Corp | | 7,000 | | | 125,377 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 24,000 | | | 512,563 | |
| | | 741,529 | |
Specialty Retail – 5.1% | | | |
| | Abu Dhabi National Oil Co | | 139,861 | | | 164,887 | |
| | Zhongsheng Group Holdings Ltd | | 21,000 | | | 174,727 | |
| | | 339,614 | |
Technology Hardware, Storage & Peripherals – 10.1% | | | |
| | Pegatron Corp | | 8,000 | | | 19,756 | |
| | Quanta Computer Inc | | 89,000 | | | 279,523 | |
| | Samsung Electronics Co Ltd | | 3,602 | | | 258,154 | |
| | Wistron Corp | | 104,000 | | | 115,721 | |
| | | 673,154 | |
Textiles, Apparel & Luxury Goods – 2.2% | | | |
| | Li Ning Co Ltd | | 12,000 | | | 146,520 | |
Transportation Infrastructure – 1.4% | | | |
| | International Container Terminal Services Inc | | 28,550 | | | 95,771 | |
Wireless Telecommunication Services – 2.0% | | | |
| | Mobile TeleSystems PJSC (ADR) | | 14,119 | | | 130,742 | |
Total Common Stocks (cost $6,362,344) | | 6,417,306 | |
Preferred Stocks– 5.1% | | | |
Technology Hardware, Storage & Peripherals – 5.1% | | | |
| | Samsung Electronics Co Ltd((cost $352,563) | | 5,221 | | | 341,730 | |
Total Investments (total cost $6,714,908) – 101.3% | | 6,759,037 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.3)% | | (89,161) | |
Net Assets – 100% | | $6,669,876 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Emerging Markets Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
China | | $1,783,416 | | 26.4 | % |
Taiwan | | 1,642,918 | | 24.3 | |
South Korea | | 1,131,893 | | 16.7 | |
Malaysia | | 715,495 | | 10.6 | |
Russia | | 578,937 | | 8.6 | |
India | | 325,624 | | 4.8 | |
United Arab Emirates | | 164,887 | | 2.4 | |
Thailand | | 118,941 | | 1.8 | |
Philippines | | 95,771 | | 1.4 | |
Saudi Arabia | | 93,922 | | 1.4 | |
Turkey | | 67,832 | | 1.0 | |
South Africa | | 22,419 | | 0.3 | |
Mexico | | 13,091 | | 0.2 | |
Indonesia | | 3,891 | | 0.1 | |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 6/30/21 |
Investment Companies - N/A |
Money Markets - N/A | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | $ | 74 | $ | (2) | $ | - | $ | - |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 59∆ | | - | | - | | - |
Total Affiliated Investments - 0.0% | $ | 133 | $ | (2) | $ | - | $ | - |
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - N/A |
Money Markets - N/A | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | | - | | 4,244,985 | | (4,244,983) | | - |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 16,637 | | 359,389 | | (376,026) | | - |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI Emerging Markets IndexSM | MSCI Emerging Markets IndexSM reflects the equity market performance of emerging markets. |
| | |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
LLC | Limited Liability Company |
PCL | Public Company Limited |
PJSC | Private Joint Stock Company |
PLC | Public Limited Company |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the year ended June 30, 2021 is $423,625, which represents 6.4% of net assets. |
| | |
* | Non-income producing security. |
| | |
oo | Rate shown is the 7-day yield as of June 30, 2021. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended June 30, 2021 is $0,000, which represents 0.0% of net assets. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Corporate Bonds | $ | - | $ | 1 | $ | - |
Common Stocks | | | | | | |
Food Products | | - | | - | | 0 |
Semiconductor & Semiconductor Equipment | | 741,529 | | - | | 0 |
All Other | | 5,675,777 | | - | | - |
Preferred Stocks | | - | | 341,730 | | - |
Total Assets | $ | 6,417,306 | $ | 341,731 | $ | 0 |
| | | | | | | |
Janus Henderson Emerging Markets Managed Volatility Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Investments, at value (cost $6,714,908) | | $ | 6,759,037 | |
| Non-interested Trustees' deferred compensation | | | 162 | |
| Receivables: | | | | |
| | Due from adviser | | | 26,748 | |
| | Investments sold | | | 26,146 | |
| | Dividends | | | 21,678 | |
| | Fund shares sold | | | 1,013 | |
| | Foreign tax reclaims | | | 30 | |
| | Dividends from affiliates | | | 1 | |
| Other assets | | | 435 | |
Total Assets | | | 6,835,250 | |
Liabilities: | | | | |
| Due to custodian | | | 60,337 | |
| Payables: | | | — | |
| | Professional fees | | | 57,995 | |
| | Non-affiliated fund administration fees payable | | | 20,213 | |
| | Registration fees | | | 9,658 | |
| | Custodian fees | | | 5,461 | |
| | Advisory fees | | | 5,331 | |
| | Foreign tax liability | | | 2,146 | |
| | Transfer agent fees and expenses | | | 967 | |
| | Fund shares repurchased | | | 753 | |
| | Non-interested Trustees' deferred compensation fees | | | 162 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 99 | |
| | Non-interested Trustees' fees and expenses | | | 26 | |
| | Affiliated fund administration fees payable | | | 14 | |
| | Accrued expenses and other payables | | | 2,212 | |
Total Liabilities | | | 165,374 | |
Net Assets | | $ | 6,669,876 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Emerging Markets Managed Volatility Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 6,236,968 | |
| Total distributable earnings (loss) (includes $2,146 of foreign capital gains tax) | | | 432,908 | |
Total Net Assets | | $ | 6,669,876 | |
Net Assets - Class A Shares | | $ | 30,262 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,547 | |
Net Asset Value Per Share(1) | | $ | 11.88 | |
Maximum Offering Price Per Share(2) | | $ | 12.60 | |
Net Assets - Class C Shares | | $ | 95,496 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 8,142 | |
Net Asset Value Per Share(1) | | $ | 11.73 | |
Net Assets - Class D Shares | | $ | 5,043,473 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 431,455 | |
Net Asset Value Per Share | | $ | 11.69 | |
Net Assets - Class I Shares | | $ | 388,291 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 33,199 | |
Net Asset Value Per Share | | $ | 11.70 | |
Net Assets - Class N Shares | | $ | 852,790 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 73,814 | |
Net Asset Value Per Share | | $ | 11.55 | |
Net Assets - Class S Shares | | $ | 69,652 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,956 | |
Net Asset Value Per Share | | $ | 11.69 | |
Net Assets - Class T Shares | | $ | 189,912 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 16,267 | |
Net Asset Value Per Share | | $ | 11.67 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Emerging Markets Managed Volatility Fund
Statement of Operations
For the year ended June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 177,552 | |
| Dividends from affiliates | | 74 | |
| Affiliated securities lending income, net | | 59 | |
| Other income | | 207 | |
| Foreign tax withheld | | (16,400) | |
Total Investment Income | | 161,492 | |
Expenses: | | | |
| Advisory fees | | 59,474 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 71 | |
| | Class C Shares | | — | |
| | Class S Shares | | — | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 4,972 | |
| | Class S Shares | | 167 | |
| | Class T Shares | | 358 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 43 | |
| | Class C Shares | | 4 | |
| | Class I Shares | | 489 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 13 | |
| | Class C Shares | | 14 | |
| | Class D Shares | | 1,599 | |
| | Class I Shares | | 55 | |
| | Class N Shares | | 164 | |
| | Class S Shares | | 10 | |
| | Class T Shares | | 24 | |
| Registration fees | | 123,153 | |
| Professional fees | | 68,877 | |
| Non-affiliated fund administration fees | | 66,097 | |
| Custodian fees | | 43,871 | |
| Shareholder reports expense | | 4,234 | |
| Affiliated fund administration fees | | 177 | |
| Non-interested Trustees’ fees and expenses | | 102 | |
| Other expenses | | 5,033 | |
Total Expenses | | 379,001 | |
Less: Excess Expense Reimbursement and Waivers | | (318,055) | |
Net Expenses | | 60,946 | |
Net Investment Income/(Loss) | | 100,546 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Emerging Markets Managed Volatility Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (includes $(30,728) of foreign capital gains tax) | $ | 1,169,716 | |
| Investments in affiliates | | (2) | |
Total Net Realized Gain/(Loss) on Investments | | 1,169,714 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation (includes $(2,146) of foreign capital gains tax) | | (410,871) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (410,871) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 859,389 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Emerging Markets Managed Volatility Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 100,546 | | $ | 94,172 | |
| Net realized gain/(loss) on investments | | 1,169,714 | | | (308,487) | |
| Change in unrealized net appreciation/depreciation | | (410,871) | | | (252,415) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 859,389 | | | (466,730) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (185) | | | — | |
| | Class C Shares | | (830) | | | (1,314) | |
| | Class D Shares | | (41,652) | | | (88,370) | |
| | Class I Shares | | (4,248) | | | (7,033) | |
| | Class N Shares | | (28,330) | | | (45,472) | |
| | Class S Shares | | (721) | | | (1,366) | |
| | Class T Shares | | (1,626) | | | (4,610) | |
Net Decrease from Dividends and Distributions to Shareholders | | (77,592) | | | (148,165) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 1,279 | | | (2,228) | |
| | Class C Shares | | 28,329 | | | 1,314 | |
| | Class D Shares | | 1,408,492 | | | (982,037) | |
| | Class I Shares | | 9,239 | | | 319,201 | |
| | Class N Shares | | (878,038) | | | (212,395) | |
| | Class S Shares | | 721 | | | 1,366 | |
| | Class T Shares | | 30,289 | | | (307,364) | |
Net Increase/(Decrease) from Capital Share Transactions | | 600,311 | | | (1,182,143) | |
Net Increase/(Decrease) in Net Assets | | 1,382,108 | | | (1,797,038) | |
Net Assets: | | | | | | |
| Beginning of period | | 5,287,768 | | | 7,084,806 | |
| End of period | $ | 6,669,876 | | $ | 5,287,768 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Emerging Markets Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.22 | | | $10.80 | | | $11.57 | | | $10.47 | | | $9.48 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.14 | | | 0.15 | | | 0.17 | | | 0.17 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 1.59 | | | (0.73) | | | 0.15 | | | 1.14 | | | 1.01 | |
| Total from Investment Operations | | 1.73 | | | (0.58) | | | 0.32 | | | 1.31 | | | 1.09 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.07) | | | — | | | (0.13) | | | (0.15) | | | (0.10) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.96) | | | (0.06) | | | — | |
| Total Dividends and Distributions | | (0.07) | | | — | | | (1.09) | | | (0.21) | | | (0.10) | |
| Net Asset Value, End of Period | | $11.88 | | | $10.22 | | | $10.80 | | | $11.57 | | | $10.47 | |
| Total Return* | | 16.99% | | | (5.37)% | | | 3.40% | | | 12.50% | | | 11.64% | |
| Net Assets, End of Period (in thousands) | | $30 | | | $25 | | | $29 | | | $410 | | | $169 | |
| Average Net Assets for the Period (in thousands) | | $29 | | | $23 | | | $319 | | | $206 | | | $152 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 16.67% | | | 19.07% | | | 6.63% | | | 4.40% | | | 7.53% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.30% | | | 1.39% | | | 1.33% | | | 1.30% | | | 1.29% | |
| | Ratio of Net Investment Income/(Loss) | | 1.23% | | | 1.46% | | | 1.55% | | | 1.46% | | | 0.85% | |
| Portfolio Turnover Rate | | 198% | | | 99% | | | 66% | | | 132% | | | 116% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.11 | | | $10.91 | | | $11.51 | | | $10.44 | | | $9.44 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.20 | | | 0.13 | | | 0.19 | | | 0.06 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 1.56 | | | (0.70) | | | 0.17 | | | 1.16 | | | 1.01 | |
| Total from Investment Operations | | 1.76 | | | (0.57) | | | 0.36 | | | 1.22 | | | 1.02 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.23) | | | — | | | (0.09) | | | (0.02) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.96) | | | (0.06) | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.23) | | | (0.96) | | | (0.15) | | | (0.02) | |
| Net Asset Value, End of Period | | $11.73 | | | $10.11 | | | $10.91 | | | $11.51 | | | $10.44 | |
| Total Return* | | 17.50% | | | (5.33)% | | | 3.74% | | | 11.66% | | | 10.85% | |
| Net Assets, End of Period (in thousands) | | $95 | | | $58 | | | $61 | | | $93 | | | $84 | |
| Average Net Assets for the Period (in thousands) | | $73 | | | $58 | | | $60 | | | $108 | | | $52 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 9.66% | | | 10.93% | | | 10.71% | | | 5.29% | | | 8.12% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.83% | | | 1.31% | | | 1.31% | | | 2.00% | | | 2.05% | |
| | Ratio of Net Investment Income/(Loss) | | 1.78% | | | 1.30% | | | 1.76% | | | 0.54% | | | 0.14% | |
| Portfolio Turnover Rate | | 198% | | | 99% | | | 66% | | | 132% | | | 116% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Emerging Markets Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.07 | | | $10.84 | | | $11.57 | | | $10.47 | | | $9.49 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.15 | | | 0.20 | | | 0.15 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 1.57 | | | (0.70) | | | 0.17 | | | 1.18 | | | 0.99 | |
| Total from Investment Operations | | 1.75 | | | (0.55) | | | 0.37 | | | 1.33 | | | 1.09 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.22) | | | (0.14) | | | (0.17) | | | (0.11) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.96) | | | (0.06) | | | — | |
| Total Dividends and Distributions | | (0.13) | | | (0.22) | | | (1.10) | | | (0.23) | | | (0.11) | |
| Net Asset Value, End of Period | | $11.69 | | | $10.07 | | | $10.84 | | | $11.57 | | | $10.47 | |
| Total Return* | | 17.39% | | | (5.19)% | | | 3.84% | | | 12.68% | | | 11.70% | |
| Net Assets, End of Period (in thousands) | | $5,043 | | | $3,152 | | | $4,522 | | | $7,047 | | | $4,206 | |
| Average Net Assets for the Period (in thousands) | | $4,359 | | | $3,991 | | | $4,963 | | | $7,312 | | | $2,602 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 5.72% | | | 5.73% | | | 5.63% | | | 3.79% | | | 6.89% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.00% | | | 1.14% | | | 1.15% | | | 1.13% | | | 1.22% | |
| | Ratio of Net Investment Income/(Loss) | | 1.58% | | | 1.46% | | | 1.86% | | | 1.27% | | | 1.00% | |
| Portfolio Turnover Rate | | 198% | | | 99% | | | 66% | | | 132% | | | 116% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.09 | | | $10.87 | | | $11.64 | | | $10.48 | | | $9.49 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.14 | | | 0.22 | | | 0.21 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 1.57 | | | (0.67) | | | 0.12 | | | 1.13 | | | 1.01 | |
| Total from Investment Operations | | 1.75 | | | (0.53) | | | 0.34 | | | 1.34 | | | 1.11 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.25) | | | (0.15) | | | (0.12) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.96) | | | (0.06) | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.25) | | | (1.11) | | | (0.18) | | | (0.12) | |
| Net Asset Value, End of Period | | $11.70 | | | $10.09 | | | $10.87 | | | $11.64 | | | $10.48 | |
| Total Return* | | 17.43% | | | (5.05)% | | | 3.59% | | | 12.82% | | | 11.93% | |
| Net Assets, End of Period (in thousands) | | $388 | | | $331 | | | $41 | | | $102 | | | $831 | |
| Average Net Assets for the Period (in thousands) | | $338 | | | $192 | | | $99 | | | $374 | | | $765 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 6.79% | | | 6.97% | | | 8.15% | | | 4.79% | | | 7.62% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 1.06% | | | 1.16% | | | 1.18% | | | 1.10% | |
| | Ratio of Net Investment Income/(Loss) | | 1.59% | | | 1.41% | | | 2.05% | | | 1.79% | | | 0.97% | |
| Portfolio Turnover Rate | | 198% | | | 99% | | | 66% | | | 132% | | | 116% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Emerging Markets Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018(1) | |
| Net Asset Value, Beginning of Period | | $10.06 | | | $10.85 | | | $11.59 | | | $11.10 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.19 | | | 0.16 | | | 0.21 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | 1.56 | | | (0.70) | | | 0.17 | | | 0.58 | |
| Total from Investment Operations | | 1.75 | | | (0.54) | | | 0.38 | | | 0.73 | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.26) | | | (0.25) | | | (0.16) | | | (0.18) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.96) | | | (0.06) | |
| Total Dividends and Distributions | | (0.26) | | | (0.25) | | | (1.12) | | | (0.24) | |
| Net Asset Value, End of Period | | $11.55 | | | $10.06 | | | $10.85 | | | $11.59 | |
| Total Return* | | 17.52% | | | (5.10)% | | | 3.98% | | | 6.57% | |
| Net Assets, End of Period (in thousands) | | $853 | | | $1,525 | | | $1,915 | | | $1,614 | |
| Average Net Assets for the Period (in thousands) | | $1,251 | | | $1,721 | | | $1,667 | | | $1,086 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 6.12% | | | 5.61% | | | 5.63% | | | 3.50% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.86% | | | 0.98% | | | 0.99% | | | 0.97% | |
| | Ratio of Net Investment Income/(Loss) | | 1.68% | | | 1.60% | | | 1.95% | | | 1.35% | |
| Portfolio Turnover Rate | | 198% | | | 99% | | | 66% | | | 132% | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.07 | | | $10.86 | | | $11.57 | | | $10.47 | | | $9.48 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.18 | | | 0.14 | | | 0.19 | | | 0.14 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 1.56 | | | (0.69) | | | 0.17 | | | 1.16 | | | 1.01 | |
| Total from Investment Operations | | 1.74 | | | (0.55) | | | 0.36 | | | 1.30 | | | 1.08 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.12) | | | (0.24) | | | (0.11) | | | (0.14) | | | (0.09) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.96) | | | (0.06) | | | — | |
| Total Dividends and Distributions | | (0.12) | | | (0.24) | | | (1.07) | | | (0.20) | | | (0.09) | |
| Net Asset Value, End of Period | | $11.69 | | | $10.07 | | | $10.86 | | | $11.57 | | | $10.47 | |
| Total Return* | | 17.34% | | | (5.24)% | | | 3.80% | | | 12.38% | | | 11.52% | |
| Net Assets, End of Period (in thousands) | | $70 | | | $59 | | | $63 | | | $60 | | | $54 | |
| Average Net Assets for the Period (in thousands) | | $67 | | | $60 | | | $60 | | | $61 | | | $50 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 10.43% | | | 10.82% | | | 10.71% | | | 5.54% | | | 7.83% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.93% | | | 1.22% | | | 1.19% | | | 1.40% | | | 1.42% | |
| | Ratio of Net Investment Income/(Loss) | | 1.60% | | | 1.38% | | | 1.75% | | | 1.15% | | | 0.71% | |
| Portfolio Turnover Rate | | 198% | | | 99% | | | 66% | | | 132% | | | 116% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 4, 2017 (inception date) through June 30, 2018. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson Emerging Markets Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.08 | | | $10.84 | | | $11.58 | | | $10.48 | | | $9.49 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.18 | | | 0.19 | | | 0.16 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | 1.55 | | | (0.74) | | | 0.17 | | | 1.16 | | | 1.01 | |
| Total from Investment Operations | | 1.73 | | | (0.56) | | | 0.36 | | | 1.32 | | | 1.10 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.20) | | | (0.14) | | | (0.16) | | | (0.11) | |
| | Distributions (from capital gains) | | — | | | — | | | (0.96) | | | (0.06) | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.20) | | | (1.10) | | | (0.22) | | | (0.11) | |
| Net Asset Value, End of Period | | $11.67 | | | $10.08 | | | $10.84 | | | $11.58 | | | $10.48 | |
| Total Return* | | 17.17% | | | (5.27)% | | | 3.82% | | | 12.64% | | | 11.78% | |
| Net Assets, End of Period (in thousands) | | $190 | | | $138 | | | $454 | | | $195 | | | $174 | |
| Average Net Assets for the Period (in thousands) | | $143 | | | $227 | | | $310 | | | $207 | | | $170 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 8.02% | | | 6.95% | | | 6.61% | | | 4.51% | | | 7.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.24% | | | 1.21% | | | 1.16% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | 1.64% | | | 1.72% | | | 1.77% | | | 1.36% | | | 0.93% | |
| Portfolio Turnover Rate | | 198% | | | 99% | | | 66% | | | 132% | | | 116% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Emerging Markets Managed Volatility Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with United States of America generally accepted accounting principles ("US GAAP").
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
The Fund did not hold a significant amount of Level 3 securities as of June 30, 2021.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
Within the parameters of its specific investment policies, the Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging market countries.” Such countries include but are not limited to countries included in the MSCI Emerging Markets IndexSM. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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. Similarly, issuers in such markets may not be subject to regulatory, accounting, auditing, and financial reporting and recordkeeping standards comparable to those to which U.S. companies are subject. There is a risk in developing countries that a current or future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, sanctions or imposition of restrictions by various governmental entities on investment and trading, or creation of government monopolies, any of which may have a detrimental effect on the Fund’s investments. In addition, the Fund’s investments may be denominated in foreign currencies and therefore, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Fund’s investments. To the extent that the Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
that country or region, which could have a negative impact on the Fund’s performance. Developing countries may also experience a higher level of exposure and vulnerability to the adverse effects of climate change. This can be attributed to both the geographic location of emerging market countries and/or a country’s lack of access to technology or resources to adjust and adapt to its effects. An increased occurrence and severity of natural disasters and extreme weather events such as droughts and decreased crop yields, heat waves, flooding and rising sea levels, and increased spread of disease, could cause harmful effects to the performance of affected economies. Additionally, foreign and emerging market risks, including, but not limited to, price controls, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, nationalization, and restrictions on repatriation of assets may be heightened to the extent the Fund invests in Chinese local market securities.
Real Estate Investing
To the extent that real estate-related securities may be included in the Fund’s named benchmark index, Intech’s mathematical investment process may select equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the Securities and Exchange Commission (the "SEC"). If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to primarily invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
105% value of the securities on loan. The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations.
There were no securities on loan as of June 30, 2021.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $2 Billion | 0.95 |
Next $1 Billion | 0.92 |
Next $3 Billion | 0.90 |
The Fund’s actual investment advisory fee rate for the reporting period was 0.95% of average annual net assets before any applicable waivers.
Intech Investment Management LLC (“Intech”) serves as subadviser to the Fund. As subadviser, Intech provides day-to-day management of the investment operations of the Fund subject to the general oversight of Janus Capital. Janus Capital owns approximately 97% of Intech.
Janus Capital pays Intech a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (net of any fee waivers and expense reimbursements).
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.85% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $9.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class C Shares during the year ended June 30, 2021.
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
As of June 30, 2021, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | 71 | | 1 | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 7 | | 1 | | |
Class S Shares | 100 | | 1 | | |
Class T Shares | - | | - | | |
| | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes (reduced by foreign tax liability).
Other book to tax differences primarily consist of deferred compensation and foreign currency contract adjustments. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 1,349 | $ 402,636 | $ - | $ - | $ - | $ 256 | $ 28,667 | |
During the year ended June 30, 2021, capital loss carryovers of $737,828 were utilized by the Fund. There are no unused capital loss carryovers
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 6,728,224 | $ 325,572 | $ (294,759) | $ 30,813 |
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, passive foreign investment companies, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 77,592 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 148,165 | $ - | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ 53,964 | $ (30,451) | $ (23,513) |
Capital has been adjusted by $53,964, including $47,139 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 99 | $ 1,131 | | 1,674 | $ 17,785 |
Reinvested dividends and distributions | 16 | 185 | | - | - |
Shares repurchased | (3) | (37) | | (1,878) | (20,013) |
Net Increase/(Decrease) | 112 | $ 1,279 | | (204) | $ (2,228) |
Class C Shares: | | | | | |
Shares sold | 2,344 | $ 27,500 | | - | $ - |
Reinvested dividends and distributions | 73 | 829 | | 120 | 1,314 |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 2,417 | $ 28,329 | | 120 | $ 1,314 |
Class D Shares: | | | | | |
Shares sold | 410,550 | $4,795,421 | | 97,720 | $ 976,176 |
Reinvested dividends and distributions | 3,618 | 40,886 | | 8,049 | 87,014 |
Shares repurchased | (295,725) | (3,427,815) | | (209,848) | (2,045,227) |
Net Increase/(Decrease) | 118,443 | $1,408,492 | | (104,079) | $ (982,037) |
Class I Shares: | | | | | |
Shares sold | 16,497 | $ 189,168 | | 29,989 | $ 328,879 |
Reinvested dividends and distributions | 376 | 4,247 | | 649 | 7,033 |
Shares repurchased | (16,434) | (184,176) | | (1,635) | (16,711) |
Net Increase/(Decrease) | 439 | $ 9,239 | | 29,003 | $ 319,201 |
Class N Shares: | | | | | |
Shares sold | 18,690 | $ 209,967 | | 69,274 | $ 707,315 |
Reinvested dividends and distributions | 2,539 | 28,330 | | 4,214 | 45,472 |
Shares repurchased | (98,925) | (1,116,335) | | (98,553) | (965,182) |
Net Increase/(Decrease) | (77,696) | $ (878,038) | | (25,065) | $ (212,395) |
Class S Shares: | | | | | |
Shares sold | - | $ - | | - | $ - |
Reinvested dividends and distributions | 64 | 721 | | 126 | 1,366 |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 64 | $ 721 | | 126 | $ 1,366 |
Class T Shares: | | | | | |
Shares sold | 11,252 | $ 129,070 | | 16,160 | $ 162,388 |
Reinvested dividends and distributions | 144 | 1,626 | | 426 | 4,610 |
Shares repurchased | (8,836) | (100,407) | | (44,793) | (474,362) |
Net Increase/(Decrease) | 2,560 | $ 30,289 | | (28,207) | $ (307,364) |
6. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$12,942,420 | $ 12,283,351 | $ - | $ - |
Janus Henderson Emerging Markets Managed Volatility Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Emerging Markets Managed Volatility Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Emerging Markets Managed Volatility Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Emerging Markets Managed Volatility Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian and broker; when replies were not received from the broker, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 60-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, with the exception of extended market closures due to planned holidays, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Emerging Markets Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Emerging Markets Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Emerging Markets Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Emerging Markets Managed Volatility Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
| | |
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Capital Gain Distributions | $47,139 |
Foreign Taxes Paid | $16,370 |
Foreign Source Income | $155,384 |
Qualified Dividend Income Percentage | 72% |
Janus Henderson Emerging Markets Managed Volatility Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Emerging Markets Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Emerging Markets Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Emerging Markets Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Emerging Markets Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Emerging Markets Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Emerging Markets Managed Volatility Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
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Janus Henderson Emerging Markets Managed Volatility Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93012 08-21 |
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| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson Flexible Bond Fund |
| | |
| | Janus Investment Fund |
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| | | |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Flexible Bond Fund
Janus Henderson Flexible Bond Fund (unaudited)
| | | | | | |
FUND SNAPSHOT We believe our research-driven investment process, diversified portfolio construction and robust risk management can drive consistent risk-adjusted performance, with excess returns generated primarily through sector and security decisions. Our collaborative investment teams utilize our broad investment flexibility across the investment cycle in an effort to capitalize on attractive opportunities and provide the downside risk management clients expect from their core fixed income portfolio. | | | | 
Greg Wilensky co-portfolio manager | 
Michael Keough co-portfolio manager |
| | | |
PERFORMANCE SUMMARY
During the one-year period ended June 30, 2021, Janus Henderson Flexible Bond Fund’s Class I Shares returned 2.56% compared with -0.33% for the Fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.
MARKET EVIRONMENT
The period began amid economically damaging social distancing measures put in place by governments worldwide to mitigate the spread of COVID-19. However, U.S. credit markets had already begun recovering from their March lows as significant monetary and fiscal stimulus supported the markets and mid-period vaccine developments created optimism around a potential economic reopening in 2021. Indeed, during the second half of the period, vaccines were distributed at a faster-than-expected-rate and cyclical industries rebounded sharply as consumers began to resume aspects of their lifestyles that had previously been restricted.
Strong consumer spending coupled with supply chain issues and the residual effects of monetary and fiscal stimulus measures then brought on concerns of inflation. Yields on longer-term Treasury bonds rose quickly during February and March. However, inflation expectations moderated by period end as certain commodity prices cooled and market participants gravitated toward the Federal Reserve’s (Fed) view that many aspects of inflation should be transitory. Ultimately, Treasuries generated negative returns for the period as the yield on the 10-year note closed June at 1.47%, up from 0.66% a year earlier. Credit markets rallied as the economic outlook improved. All index credit sectors outperformed Treasuries and generated positive total returns except for agency mortgage-backed securities (MBS). High-yield corporates, which are typically more sensitive to an improving economic environment than Treasury moves, generated double-digit gains. Treasury Inflation-Protected Securities (TIPS) also performed well.
PERFORMANCE DISCUSSION
Our favorable view on the U.S. economy and belief that the Fed was likely to remain accommodative led us to maintain the Fund’s overweight exposure to corporate bonds (including high yield) and securitized credit and our underweight exposure to U.S. Treasuries and MBS.
As the period progressed and credit spreads narrowed, we reduced exposure to corporate credit, primarily in the investment-grade market given our view that high-yield corporate bonds should continue to outperform their investment-grade counterparts on a risk-adjusted basis. Within high yield, our holdings focused on companies that we believed have the potential to be “rising stars” – securities that could see sufficient rating improvement to push them into the investment-grade market.
In securitized credit, we maintained the Fund’s underweight exposure to MBS but added to commercial mortgage-backed securities (CMBS) on the belief that the asset class would continue to provide diversification and attractive opportunities in certain subsectors. We initiated a position in TIPS and continued adding exposure through May but reduced the position later in the period as inflation expectations soared and valuations began to look expensive. As markets shifted focus to the potential transitory nature of inflation, and inflation expectations decreased, the securities repriced at more attractive levels near period end, and we added exposure back.
Our asset allocation decisions proved to be positive contributors. The Fund’s out-of-index allocation to high-yield corporate bonds performed well as the economic outlook continued to improve and investors’ demand for yield remained intact. Our overweight to investment-grade
Janus Henderson Flexible Bond Fund (unaudited)
corporate bonds, which was in effect for the majority of the period, was another meaningful contributor as spreads contracted. The underweight to MBS further benefited relative performance, particularly when spreads widened in the latter half of the period as interest rates declined and prepayment risk increased. Gains were partially offset by the Fund’s positioning relative to the Treasury yield curve, with our long-U.S. Treasury holdings being heavily impacted as the curve steepened. The Fund’s lack of exposure to government-related securities and a small cash balance were modest detractors.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We continue to expect strong economic growth, fueled by the combination of excess aggregate consumer savings, expanding employment, fiscal stimulus and pent-up demand. With improving fundamentals for companies and consumers, we remain modestly positive on corporate bonds and securitized credit, even as spreads have compressed. With spreads on many sectors close to all-time tights, they appear to be pricing in most of the good news. As such, we will continue to monitor valuations closely and expect to remain diversified in our exposure, looking to a wide variety of sectors and industries to provide yield and reduce overall portfolio volatility. While markets over the past year were primarily driven by broad strength across risk assets, we believe portfolio excess returns in the remainder of 2021 are more likely to be driven by our fundamental research and our ability to uncover individual sectors and securities with the potential to outperform the market. For one, we think higher-quality sub-investment-grade corporate bonds (such as BB rated bonds) continue to look attractive relative to investment-grade corporates.
We maintain our view that interest rates are too low for the kind of economic growth the market forecasts in the years ahead. However, the level for rates depends on whether inflation moderates as supply bottlenecks ease or if other factors prove to be more persistent. We believe most of the recent rise will prove to be transitory but expect that some residual effects will persist. In the months ahead, we will remain focused on what we believe are the most likely contributors to sustained inflation – wages and home prices – mindful that significant distortions could apply to both series as consumers and companies navigate their way through the changes COVID-19 wrought on the economy.
The Fed continues to be an important driver for the markets. We expect monetary policy to remain accommodative in order to drive sustained improvement in employment and meet the Fed’s long-term inflation goals. Looking ahead, we believe it is prudent for the Fed to begin the tapering of asset purchases, but more meaningful tightening in the form of interest rate hikes is likely well into the future. While we agree with the Fed’s approach and believe the risk to sustained higher inflation is low, this view is not without risks. As such, we continue to adhere to our philosophy and process that has allowed us to navigate various market cycles: Constructing diversified portfolios driven by bottom-up, fundamental research and actively managing through the evolving environment with a disciplined risk management overlay.
Thank you for your investment in Janus Henderson Flexible Bond Fund.
Janus Henderson Flexible Bond Fund (unaudited)
Fund At A Glance
June 30, 2021
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Fund Profile | | |
30-day Current Yield* | Without
Reimbursement | With
Reimbursement |
Class A Shares NAV | 0.83% | 0.83% |
Class A Shares MOP | 0.79% | 0.79% |
Class C Shares** | 0.17% | 0.17% |
Class D Shares | 1.07% | 1.07% |
Class I Shares | 1.15% | 1.15% |
Class N Shares | 1.22% | 1.22% |
Class R Shares | 0.46% | 0.46% |
Class S Shares | 0.71% | 0.71% |
Class T Shares | 0.97% | 0.97% |
Weighted Average Maturity | 7.6 Years |
Average Effective Duration*** | 6.0 Years |
* Yield will fluctuate. | | |
** Does not include the 1.00% contingent deferred sales charge. |
*** A theoretical measure of price volatility. | |
| | |
Ratings† Summary - (% of Total Investments) | |
AAA | 5.4% |
AA | 35.4% |
A | 4.1% |
BBB | 24.6% |
BB | 14.5% |
B | 3.0% |
Not Rated | 12.2% |
Other | 0.8% |
† Credit ratings provided by Standard & Poor's (S&P), an independent credit rating agency. Credit ratings range from AAA (highest) to D (lowest) based on S&P's measures. Further information on S&P's rating methodology may be found at www.standardandpoors.com. Other rating agencies may rate the same securities differently. Ratings are relative and subjective and are not absolute standards of quality. Credit quality does not remove market risk and is subject to change. "Not Rated" securities are not rated by S&P, but may be rated by other rating agencies and do not necessarily indicate low quality. "Other" includes cash equivalents, equity securities, and certain derivative instruments. |
Significant Areas of Investment - (% of Net Assets)
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Corporate Bonds | | 41.7% | |
United States Treasury Notes/Bonds | | 17.6% | |
Asset-Backed/Commercial Mortgage-Backed Securities | | 17.3% | |
Mortgage-Backed Securities | | 16.5% | |
Investment Companies | | 10.2% | |
Inflation-Indexed Bonds | | 4.0% | |
Bank Loans and Mezzanine Loans | | 1.3% | |
Preferred Stocks | | 0.6% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.2% | |
Other | | (9.4)% |
| | | 100.0% |
Janus Henderson Flexible Bond Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 2.19% | 3.53% | 3.74% | 6.41% | | | 0.92% | 0.89% |
Class A Shares at MOP | | -2.70% | 2.53% | 3.23% | 6.26% | | | | |
Class C Shares at NAV | | 1.60% | 2.90% | 3.02% | 5.73% | | | 1.52% | 1.52% |
Class C Shares at CDSC | | 0.60% | 2.90% | 3.02% | 5.73% | | | | |
Class D Shares | | 2.49% | 3.83% | 3.98% | 6.50% | | | 0.59% | 0.59% |
Class I Shares | | 2.56% | 3.91% | 4.04% | 6.51% | | | 0.51% | 0.51% |
Class N Shares | | 2.54% | 3.99% | 4.11% | 6.53% | | | 0.44% | 0.44% |
Class R Shares | | 1.89% | 3.21% | 3.37% | 6.02% | | | 1.20% | 1.20% |
Class S Shares | | 2.11% | 3.46% | 3.61% | 6.27% | | | 0.95% | 0.95% |
Class T Shares | | 2.39% | 3.76% | 3.89% | 6.46% | | | 0.69% | 0.69% |
Bloomberg Barclays U.S. Aggregate Bond Index | | -0.33% | 3.03% | 3.39% | 6.12%** | | | | |
Morningstar Quartile - Class T Shares | | 3rd | 2nd | 2nd | 2nd | | | | |
Morningstar Ranking - based on total returns for Intermediate Core - Plus Bond Funds | | 350/593 | 269/547 | 233/478 | 26/95 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 4.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Janus Henderson Flexible Bond Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective share class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on May 31, 2012. Performance shown for periods prior to May 31, 2012, reflects the performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – July 7, 1987
** The Bloomberg Barclays U.S. Aggregate Bond Index’s since inception returns are calculated from June 30, 1987.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Flexible Bond Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $988.00 | $4.24 | | $1,000.00 | $1,020.53 | $4.31 | 0.86% |
Class C Shares | $1,000.00 | $984.50 | $6.89 | | $1,000.00 | $1,017.85 | $7.00 | 1.40% |
Class D Shares | $1,000.00 | $988.60 | $2.76 | | $1,000.00 | $1,022.02 | $2.81 | 0.56% |
Class I Shares | $1,000.00 | $989.00 | $2.42 | | $1,000.00 | $1,022.36 | $2.46 | 0.49% |
Class N Shares | $1,000.00 | $989.30 | $2.07 | | $1,000.00 | $1,022.71 | $2.11 | 0.42% |
Class R Shares | $1,000.00 | $985.70 | $5.66 | | $1,000.00 | $1,019.09 | $5.76 | 1.15% |
Class S Shares | $1,000.00 | $986.80 | $4.53 | | $1,000.00 | $1,020.23 | $4.61 | 0.92% |
Class T Shares | $1,000.00 | $988.20 | $3.25 | | $1,000.00 | $1,021.52 | $3.31 | 0.66% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– 17.3% | | | |
| | 208 Park Avenue Mortgage Trust 2017-280P, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8800%, 0.9529%, 9/15/34 (144A)‡ | | $4,050,930 | | | $4,051,005 | |
| | Affirm Asset Securitization Trust 2020-Z2 A, 1.9000%, 1/15/25 (144A) | | 2,159,787 | | | 2,174,727 | |
| | Affirm Asset Securitization Trust 2021-A A, 0.8800%, 8/15/25 (144A) | | 4,557,000 | | | 4,562,784 | |
| | Angel Oak Mortgage Trust I LLC 2018-2, | | | | | | |
| | ICE LIBOR USD 12 Month + 0.7600%, 3.6740%, 7/27/48 (144A)‡ | | 386,071 | | | 386,071 | |
| | Angel Oak Mortgage Trust I LLC 2019-5, 2.5930%, 10/25/49 (144A)‡ | | 2,100,485 | | | 2,107,934 | |
| | Angel Oak Mortgage Trust I LLC 2019-6, | | | | | | |
| | ICE LIBOR USD 12 Month + 0.9500%, 2.6200%, 11/25/59 (144A)‡ | | 1,954,397 | | | 1,966,088 | |
| | Angel Oak Mortgage Trust I LLC 2020-2, | | | | | | |
| | ICE LIBOR USD 12 Month + 2.2000%, 2.5310%, 1/26/65 (144A)‡ | | 3,513,881 | | | 3,569,528 | |
| | Angel Oak Mortgage Trust I LLC 2020-3, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.0000%, 2.4100%, 4/25/65 (144A)‡ | | 3,187,331 | | | 3,207,194 | |
| | Arbys Funding LLC 2020-1A, 3.2370%, 7/30/50 (144A) | | 11,184,483 | | | 11,666,901 | |
| | Bank 2018-BN12 A4, 4.2550%, 5/15/61‡ | | 1,760,650 | | | 2,032,243 | |
| | Bank 2019-BN17, 3.7140%, 4/15/52 | | 3,864,736 | | | 4,352,059 | |
| | Bank 2019-BN18, 3.5840%, 5/15/62 | | 6,717,260 | | | 7,541,895 | |
| | Bank 2019-BN20, 3.0110%, 9/15/62 | | 3,162,497 | | | 3,416,554 | |
| | Bank 2019-BN23, 2.9200%, 12/15/52 | | 5,689,139 | | | 6,141,986 | |
| | Bank 2019-BNK24, 2.9600%, 11/15/62 | | 1,656,800 | | | 1,783,747 | |
| | Barclays Comercial Mortgage Securities LLC 2015-SRCH, | | | | | | |
| | 4.1970%, 8/10/35 (144A) | | 9,721,000 | | | 11,016,577 | |
| | Barclays Comercial Mortgage Securities LLC 2017-DELC, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8500%, 0.9229%, 8/15/36 (144A)‡ | | 3,044,000 | | | 3,046,345 | |
| | Benchmark Mortgage Trust 2020-B16, 2.7320%, 2/15/53 | | 4,045,000 | | | 4,280,762 | |
| | BVRT Financing Trust, 1.8270%, 7/10/32‡ | | 146,623 | | | 146,623 | |
| | BVRT Financing Trust 2021-1F M1, 1.5600%, 7/1/33‡ | | 1,796,256 | | | 1,796,376 | |
| | BVRT Financing Trust 2021-2F M1, 1.5600%, 1/10/32‡ | | 5,295,605 | | | 5,295,605 | |
| | BVRT Financing Trust 2021-CRT1 M2, 2.3270%, 1/10/33‡ | | 4,145,000 | | | 4,152,772 | |
| | BVRT Financing Trust 2021-CRT2 M1, 1.8451%, 11/10/32‡ | | 4,558,896 | | | 4,558,896 | |
| | BX Commercial Mortgage Trust 2018-IND, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.7500%, 0.8230%, 11/15/35 (144A)‡ | | 3,665,887 | | | 3,667,586 | |
| | BX Commercial Mortgage Trust 2019-OC11, 3.2020%, 12/9/41 (144A) | | 4,297,000 | | | 4,628,234 | |
| | BX Commercial Mortgage Trust 2019-OC11, 3.6050%, 12/9/41 (144A) | | 2,160,000 | | | 2,369,896 | |
| | BX Commercial Mortgage Trust 2019-OC11, 3.8560%, 12/9/41 (144A) | | 4,295,000 | | | 4,679,704 | |
| | BX Commercial Mortgage Trust 2019-OC11, 4.0755%, 12/9/41 (144A)‡ | | 6,443,000 | | | 6,912,140 | |
| | BX Commercial Mortgage Trust 2019-XL, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9200%, 0.9930%, 10/15/36 (144A)‡ | | 8,511,307 | | | 8,526,040 | |
| | BX Commercial Mortgage Trust 2019-XL, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0800%, 1.1530%, 10/15/36 (144A)‡ | | 1,285,477 | | | 1,286,950 | |
| | BX Commercial Mortgage Trust 2020-FOX A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0000%, 1.0730%, 11/15/32 (144A)‡ | | 11,399,900 | | | 11,429,122 | |
| | BX Commercial Mortgage Trust 2020-FOX B, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3500%, 1.4230%, 11/15/32 (144A)‡ | | 1,979,559 | | | 1,983,644 | |
| | BX Commercial Mortgage Trust 2020-FOX C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.5500%, 1.6230%, 11/15/32 (144A)‡ | | 1,707,431 | | | 1,712,101 | |
| | BX Commercial Mortgage Trust 2021-LBA AJV, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8000%, 0.8730%, 2/15/36 (144A)‡ | | 5,348,000 | | | 5,356,463 | |
| | BX Commercial Mortgage Trust 2021-LBA AV, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8000%, 0.8730%, 2/15/36 (144A)‡ | | 6,081,000 | | | 6,090,420 | |
| | BXP Trust 2017-GM, 3.3790%, 6/13/39 (144A) | | 4,909,000 | | | 5,347,620 | |
| | CF Hippolyta Issuer LLC 2021-1A A1, 1.5300%, 3/15/61 (144A) | | 7,539,000 | | | 7,588,414 | |
| | CF Hippolyta Issuer LLC 2021-1A B1, 1.9800%, 3/15/61 (144A) | | 2,768,000 | | | 2,801,000 | |
| | CIM Trust 2021-NR1 A1, 2.5690%, 7/25/55 (144A)Ç | | 6,874,283 | | | 6,872,381 | |
| | Cold Storage Trust 2020-ICE5 A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9000%, 0.9729%, 11/15/37 (144A)‡ | | 10,993,766 | | | 11,025,044 | |
| | Cold Storage Trust 2020-ICE5 B, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3000%, 1.3729%, 11/15/37 (144A)‡ | | 4,888,412 | | | 4,899,513 | |
| | Cold Storage Trust 2020-ICE5 C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.6500%, 1.7229%, 11/15/37 (144A)‡ | | 4,906,106 | | | 4,918,405 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | COLT Funding LLC 2020-2, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.5000%, 1.8530%, 3/25/65 (144A)‡ | | $1,516,512 | | | $1,525,373 | |
| | COLT Funding LLC 2020-3, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.2000%, 1.5060%, 4/27/65 (144A)‡ | | 1,649,521 | | | 1,655,938 | |
| | Connecticut Avenue Securities Trust 2014-C04, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.9000%, 4.9915%, 11/25/24‡ | | 445,423 | | | 458,418 | |
| | Connecticut Avenue Securities Trust 2015-C02 1M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.0000%, 4.0915%, 5/25/25‡ | | 1,315,390 | | | 1,335,027 | |
| | Connecticut Avenue Securities Trust 2016-C03, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.9000%, 5.9915%, 10/25/28‡ | | 959,883 | | | 1,007,656 | |
| | Connecticut Avenue Securities Trust 2016-C04, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.2500%, 4.3415%, 1/25/29‡ | | 2,378,936 | | | 2,483,678 | |
| | Connecticut Avenue Securities Trust 2016-C06 1M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.2500%, 4.3415%, 4/25/29‡ | | 2,502,764 | | | 2,608,680 | |
| | Connecticut Avenue Securities Trust 2017-C01, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.5500%, 3.6415%, 7/25/29‡ | | 4,204,076 | | | 4,348,980 | |
| | Connecticut Avenue Securities Trust 2017-C05 1M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.2000%, 2.2915%, 1/25/30‡ | | 5,450,746 | | | 5,532,266 | |
| | Connecticut Avenue Securities Trust 2017-C06 1M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.6500%, 2.7415%, 2/25/30‡ | | 4,651,270 | | | 4,735,567 | |
| | Connecticut Avenue Securities Trust 2017-C07 1M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4000%, 2.4915%, 5/25/30‡ | | 5,321,172 | | | 5,388,036 | |
| | Connecticut Avenue Securities Trust 2018-C03 1M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1500%, 2.2415%, 10/25/30‡ | | 5,379,651 | | | 5,445,634 | |
| | Connecticut Avenue Securities Trust 2018-R07, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4000%, 2.4915%, 4/25/31 (144A)‡ | | 1,296,300 | | | 1,302,720 | |
| | Connecticut Avenue Securities Trust 2019-R02, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.3000%, 2.3915%, 8/25/31 (144A)‡ | | 1,047,288 | | | 1,054,376 | |
| | Connecticut Avenue Securities Trust 2019-R03, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1500%, 2.2415%, 9/25/31 (144A)‡ | | 3,564,276 | | | 3,589,534 | |
| | Connecticut Avenue Securities Trust 2019-R04, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1000%, 2.1915%, 6/25/39 (144A)‡ | | 2,794,514 | | | 2,796,244 | |
| | Connecticut Avenue Securities Trust 2019-R05, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.0915%, 7/25/39 (144A)‡ | | 3,061,565 | | | 3,073,395 | |
| | Connecticut Avenue Securities Trust 2019-R07, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1000%, 2.1915%, 10/25/39 (144A)‡ | | 1,185,057 | | | 1,189,458 | |
| | Connecticut Avenue Securities Trust 2020-R02, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.0915%, 1/25/40 (144A)‡ | | 7,457,760 | | | 7,489,249 | |
| | Cosmopolitan Hotel Trust 2017, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9300%, 1.0029%, 11/15/36 (144A)‡ | | 3,744,959 | | | 3,751,033 | |
| | Credit Acceptance Auto Loan Trust 2018-2, 3.9400%, 7/15/27 (144A) | | 1,261,293 | | | 1,270,721 | |
| | Credit Suisse Commercial Mortgage Trust 2019-ICE4, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9800%, 1.0530%, 5/15/36 (144A)‡ | | 10,122,000 | | | 10,137,313 | |
| | Credit Suisse Commercial Mortgage Trust 2019-ICE4 C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.4300%, 1.5030%, 5/15/36 (144A)‡ | | 5,168,000 | | | 5,175,050 | |
| | Credit Suisse Commercial Mortgage Trust 2020-UNFI, 4.1682%, 12/6/22‡ | | 2,788,000 | | | 2,784,416 | |
| | Credit Suisse Commercial Mortgage Trust 2021-WEHO A, 4.0422%, 4/15/23‡ | | 6,425,307 | | | 6,425,016 | |
| | DB Master Finance LLC 2019-1A A23, 4.3520%, 5/20/49 (144A) | | 3,536,018 | | | 3,912,712 | |
| | DB Master Finance LLC 2019-1A A2I, 3.7870%, 5/20/49 (144A) | | 4,170,713 | | | 4,225,768 | |
| | DB Master Finance LLC 2019-1A A2II, 4.0210%, 5/20/49 (144A) | | 1,702,673 | | | 1,796,474 | |
| | Diamond Infrastructure Funding LLC 2021-1A A, 1.7600%, 4/15/49 (144A) | | 7,083,000 | | | 7,047,948 | |
| | Domino's Pizza Master Issuer LLC, 4.1180%, 7/25/47 (144A) | | 2,501,955 | | | 2,698,785 | |
| | Domino's Pizza Master Issuer LLC, 4.1160%, 7/25/48 (144A) | | 7,350,525 | | | 7,670,209 | |
| | Domino's Pizza Master Issuer LLC, 4.3280%, 7/25/48 (144A) | | 3,914,625 | | | 4,261,808 | |
| | Domino's Pizza Master Issuer LLC, 3.6680%, 10/25/49 (144A) | | 13,640,338 | | | 14,737,728 | |
| | Drive Auto Receivables Trust 2017-1, 5.1700%, 9/16/24 | | 6,197,000 | | | 6,270,624 | |
| | Drive Auto Receivables Trust 2017-2, 5.2700%, 11/15/24 | | 4,659,000 | | | 4,745,992 | |
| | Drive Auto Receivables Trust 2017-3, 3.5300%, 12/15/23 (144A) | | 342,770 | | | 345,892 | |
| | Exeter Automobile Receivables Trust 2021-1A C, 0.7400%, 1/15/26 | | 1,133,000 | | | 1,132,101 | |
| | Exeter Automobile Receivables Trust 2021-1A D, 1.0800%, 11/16/26 | | 3,626,000 | | | 3,624,307 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Extended Stay America Trust 2021-ESH A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0800%, 0%, 7/15/38 (144A)‡ | | $9,009,000 | | | $9,009,000 | |
| | Extended Stay America Trust 2021-ESH B, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3800%, 0%, 7/15/38 (144A)‡ | | 2,450,000 | | | 2,450,000 | |
| | Fannie Mae Connecticut Avenue Securities, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.0000%, 5.0915%, 7/25/25‡ | | 2,702,136 | | | 2,771,900 | |
| | Fannie Mae Connecticut Avenue Securities, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.7000%, 5.7915%, 4/25/28‡ | | 2,110,504 | | | 2,235,301 | |
| | Fannie Mae REMICS, 3.0000%, 5/25/48 | | 7,415,809 | | | 7,860,549 | |
| | Fannie Mae REMICS, 3.0000%, 11/25/49 | | 10,171,347 | | | 10,770,827 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA1 M3, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.5500%, 5.6416%, 7/25/28‡ | | 2,379,334 | | | 2,484,484 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2016-HQA3 M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3500%, 1.4415%, 3/25/29‡ | | 21,130 | | | 21,130 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2017-DNA3 M1, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.7500%, 0.8416%, 3/25/30‡ | | 48,689 | | | 48,689 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2019-DNA4 M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.9500%, 2.0415%, 10/25/49 (144A)‡ | | 831,922 | | | 835,847 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-DNA6 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 2.0180%, 12/25/50 (144A)‡ | | 5,597,000 | | | 5,648,949 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA4 M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.1500%, 3.2415%, 9/25/50 (144A)‡ | | 2,665,031 | | | 2,695,013 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA5 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.6000%, 2.6180%, 11/25/50 (144A)‡ | | 9,333,000 | | | 9,516,751 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-DNA2 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.3000%, 2.3180%, 8/25/33 (144A)‡ | | 2,791,000 | | | 2,862,036 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-HQA1 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.2500%, 2.2680%, 8/25/33 (144A)‡ | | 3,013,000 | | | 3,047,920 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0340%, 1.1070%, 12/15/36 (144A)‡ | | 2,050,000 | | | 2,052,163 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3340%, 1.4070%, 12/15/36 (144A)‡ | | 2,296,000 | | | 2,296,800 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.6330%, 1.7060%, 12/15/36 (144A)‡ | | 2,558,000 | | | 2,558,937 | |
| | GS Mortgage Securities Trust 2018-GS10, 4.1550%, 7/10/51‡ | | 2,505,214 | | | 2,880,078 | |
| | GS Mortgage Securities Trust 2018-GS9, 3.9920%, 3/10/51‡ | | 4,185,984 | | | 4,753,089 | |
| | GS Mortgage Securities Trust 2020-GC45, 2.9106%, 2/13/53 | | 4,121,000 | | | 4,418,612 | |
| | GS Mortgage Securities Trust 2020-GC47, 2.3772%, 5/12/53 | | 4,515,000 | | | 4,652,714 | |
| | Jack in the Box Funding LLC 2019-1A A23, 4.9700%, 8/25/49 (144A) | | 6,981,107 | | | 7,657,025 | |
| | Jack in the Box Funding LLC 2019-1A A2I, 3.9820%, 8/25/49 (144A) | | 6,954,051 | | | 7,066,415 | |
| | Jack in the Box Funding LLC 2019-1A A2II, 4.4760%, 8/25/49 (144A) | | 9,239,183 | | | 9,758,615 | |
| | Life Financial Services Trust 2021-BMR A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.7000%, 0.7730%, 3/15/38 (144A)‡ | | 13,778,000 | | | 13,801,062 | |
| | Life Financial Services Trust 2021-BMR C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.1000%, 1.1730%, 3/15/38 (144A)‡ | | 6,599,000 | | | 6,613,081 | |
| | Mercury Financial Credit Card Master Trust 2021-1A A, | | | | | | |
| | 1.5400%, 3/20/26 (144A) | | 6,186,000 | | | 6,205,999 | |
| | MHC Commercial Mortgage Trust 2021-MHC A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8010%, 0.8738%, 4/15/38 (144A)‡ | | 12,276,358 | | | 12,286,083 | |
| | MHC Commercial Mortgage Trust 2021-MHC C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3510%, 1.4238%, 4/15/38 (144A)‡ | | 5,917,835 | | | 5,923,516 | |
| | Morgan Stanley Capital I Trust 2016-UB11, 2.7820%, 8/15/49 | | 4,025,000 | | | 4,262,167 | |
| | Morgan Stanley Capital I Trust 2019-H6, 3.4170%, 6/15/52 | | 2,234,425 | | | 2,473,434 | |
| | Morgan Stanley Capital I Trust 2015-UBS8, 3.8090%, 12/15/48 | | 2,985,000 | | | 3,268,772 | |
| | Morgan Stanley Capital I Trust 2018-H3, 4.1770%, 7/15/51 | | 4,192,640 | | | 4,826,016 | |
| | Morgan Stanley Capital I Trust 2018-H4, 4.3100%, 12/15/51 | | 6,272,995 | | | 7,253,340 | |
| | MRA Issuance Trust 2021-NA1 A1X, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.5000%, 0%, 3/8/22 (144A)‡ | | 10,100,000 | | | 10,100,000 | |
| | New Residential Mortgage Loan Trust 2018-2, | | | | | | |
| | ICE LIBOR USD 6 Month + 0.6800%, 4.5000%, 2/25/58 (144A)‡ | | 3,649,478 | | | 3,938,954 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Newday Funding Master Issuer PLC 2021-1A A2, | | | | | | |
| | SOFR + 1.1000%, 1.1100%, 3/15/29 (144A)‡ | | $4,332,000 | | | $4,354,925 | |
| | NRZ Excess Spread Collateralized Notes 2020-PLS1 A, | | | | | | |
| | 3.8440%, 12/25/25 (144A) | | 2,157,874 | | | 2,239,340 | |
| | Oak Street Investment Grade Net Lease Fund 2020-1A A1, | | | | | | |
| | 1.8500%, 11/20/50 (144A) | | 4,837,286 | | | 4,909,036 | |
| | OneMain Direct Auto Receivables Trust 2018-1, 3.8500%, 10/14/25 (144A) | | 2,347,000 | | | 2,388,654 | |
| | OneMain Direct Auto Receivables Trust 2018-1, 4.4000%, 1/14/28 (144A) | | 2,534,000 | | | 2,584,551 | |
| | Planet Fitness Master Issuer LLC 2018-1A, 4.2620%, 9/5/48 (144A) | | 3,584,635 | | | 3,584,635 | |
| | Planet Fitness Master Issuer LLC 2019-1A, 3.8580%, 12/5/49 (144A) | | 6,528,580 | | | 6,575,725 | |
| | Preston Ridge Partners Mortgage Trust 2020-1A, 2.9810%, 2/25/25 (144A)Ç | | 1,607,378 | | | 1,621,162 | |
| | Preston Ridge Partners Mortgage Trust 2020-3, 2.8570%, 9/25/25 (144A)Ç | | 6,818,377 | | | 6,874,037 | |
| | Preston Ridge Partners Mortgage Trust 2020-4 A1, 2.9510%, 10/25/25 (144A)Ç | | 4,338,176 | | | 4,356,593 | |
| | Preston Ridge Partners Mortgage Trust 2020-5 A1, 3.1040%, 11/25/25 (144A)Ç | | 2,285,744 | | | 2,291,691 | |
| | Santander Drive Auto Receivables Trust 2020-3 D, 1.6400%, 11/16/26 | | 8,839,000 | | | 8,957,907 | |
| | Santander Drive Auto Receivables Trust 2021-1 D, 1.1300%, 11/16/26 | | 15,238,000 | | | 15,258,203 | |
| | Sequoia Mortgage Trust 2013-5, 2.5000%, 5/25/43 (144A)‡ | | 876,648 | | | 890,936 | |
| | Sequoia Mortgage Trust 2020-2, 3.5000%, 3/25/50 (144A)‡ | | 857,468 | | | 874,057 | |
| | Spruce Hill Mortgage Loan Trust 2020-SH1 A1, | | | | | | |
| | ICE LIBOR USD 12 Month + 0.9500%, 2.5210%, 1/28/50 (144A)‡ | | 721,622 | | | 798,951 | |
| | Spruce Hill Mortgage Loan Trust 2020-SH1 A2, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.0500%, 2.6240%, 1/28/50 (144A)‡ | | 1,418,196 | | | 1,569,540 | |
| | Spruce Hill Mortgage Loan Trust 2020-SH2, 3.4070%, 6/25/55 (144A)‡ | | 3,268,613 | | | 3,323,774 | |
| | Taco Bell Funding LLC 2016-1A A23, 4.9700%, 5/25/46 (144A) | | 3,816,000 | | | 4,123,808 | |
| | Taco Bell Funding LLC 2018-1A A2I, 4.3180%, 11/25/48 (144A) | | 3,765,450 | | | 3,765,450 | |
| | Taco Bell Funding LLC 2018-1A A2II, 4.9400%, 11/25/48 (144A) | | 3,323,775 | | | 3,750,147 | |
| | UNIFY Auto Receivables Trust 2021-1A A4, 0.9800%, 7/15/26 (144A) | | 3,808,000 | | | 3,851,882 | |
| | Vantage Data Centers LLC 2020-1A A2, 1.6450%, 9/15/45 (144A) | | 9,359,000 | | | 9,374,900 | |
| | Vantage Data Centers LLC 2020-2A A2, 1.9920%, 9/15/45 (144A) | | 4,083,000 | | | 4,066,373 | |
| | VASA Trust 2021-VASA A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9000%, 0.9730%, 7/15/39 (144A)‡ | | 3,768,000 | | | 3,751,254 | |
| | VCAT Asset Securitization LLC 2020-NPL1, 3.6710%, 8/25/50 (144A)Ç | | 2,146,429 | | | 2,178,560 | |
| | VCAT Asset Securitization LLC 2021-NPL1 A1, 2.2891%, 12/26/50 (144A) | | 2,072,024 | | | 2,077,603 | |
| | Wells Fargo Commercial Mortgage Trust 2021-SAVE A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.1500%, 1.2230%, 2/15/40 (144A)‡ | | 2,718,884 | | | 2,730,692 | |
| | Wendy's Funding LLC, 3.8840%, 3/15/48 (144A) | | 703,485 | | | 762,834 | |
| | Wendy's Funding LLC, 3.7830%, 6/15/49 (144A) | | 3,730,860 | | | 3,977,235 | |
| | Wendy's Funding LLC 2021-1A A2I, 2.3700%, 6/15/51 (144A) | | 3,075,000 | | | 3,086,849 | |
| | Wendy's Funding LLC 2021-1A A2II, 2.7750%, 6/15/51 (144A) | | 3,578,000 | | | 3,607,103 | |
| | Westlake Automobile Receivable Trust 2020-1A D, 2.8000%, 6/16/25 (144A) | | 4,016,000 | | | 4,157,609 | |
| | Wingstop Funding LLC 2020-1A A2, 2.8410%, 12/5/50 (144A) | | 5,826,398 | | | 6,036,867 | |
| | Zaxby's Funding LLC 2021-1A A2, 3.2380%, 7/30/51 (144A) | | 4,258,000 | | | 4,332,984 | |
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $662,299,928) | | 674,774,610 | |
Bank Loans and Mezzanine Loans– 1.3% | | | |
Basic Industry – 0.2% | | | |
| | Alpha 3 BV, ICE LIBOR USD 1 Month + 2.5000%, 3.0000%, 3/18/28‡ | | 7,170,000 | | | 7,129,705 | |
Capital Goods – 0.3% | | | |
| | Madison IAQ LLC, ICE LIBOR USD 1 Month + 3.2500%, 3.7500%, 6/21/28ƒ,‡ | | 10,704,239 | | | 10,704,239 | |
Consumer Non-Cyclical – 0.8% | | | |
| | Elanco Animal Health Inc, ICE LIBOR USD 1 Month + 1.7500%, 1.8651%, 8/1/27‡ | | 15,671,234 | | | 15,423,159 | |
| | ICON Luxembourg Sarl, ICE LIBOR USD 1 Month + 2.5000%, 3.0000%, 6/16/28ƒ,‡ | | 13,764,353 | | | 13,783,761 | |
| | Indigo Merger Sub Inc, ICE LIBOR USD 1 Month + 2.5000%, 3.0000%, 7/1/28ƒ,‡ | | 3,429,397 | | | 3,434,232 | |
| | | 32,641,152 | |
Total Bank Loans and Mezzanine Loans (cost $50,621,937) | | 50,475,096 | |
Corporate Bonds– 41.7% | | | |
Banking – 8.3% | | | |
| | Ally Financial Inc, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.8680%, 4.7000%‡,µ | | 8,325,000 | | | 8,622,203 | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 1.0600%, 3.5590%, 4/23/27‡ | | 7,123,000 | | | 7,801,278 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Banking– (continued) | | | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 1.5120%, 3.7050%, 4/24/28‡ | | $12,390,000 | | | $13,700,637 | |
| | Bank of America Corp, SOFR + 1.0600%, 2.0870%, 6/14/29‡ | | 10,769,000 | | | 10,856,140 | |
| | Bank of America Corp, SOFR + 2.1500%, 2.5920%, 4/29/31‡ | | 9,971,000 | | | 10,279,475 | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 3.1350%, 5.2000%‡,#,µ | | 3,295,000 | | | 3,427,624 | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 3.7050%, 6.2500%‡,µ | | 8,517,000 | | | 9,421,931 | |
| | Bank of New York Mellon Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 4.3580%, 4.7000%‡,µ | | 12,223,000 | | | 13,338,349 | |
| | BNP Paribas SA, ICE LIBOR USD 3 Month + 2.2350%, 4.7050%, 1/10/25 (144A)‡ | | 5,510,000 | | | 6,011,391 | |
| | BNP Paribas SA, ICE LIBOR USD 3 Month + 1.1110%, 2.8190%, 11/19/25 (144A)‡ | | 3,744,000 | | | 3,939,217 | |
| | BNP Paribas SA, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 2.0500%, 2.5880%, 8/12/35 (144A)‡ | | 12,265,000 | | | 11,981,837 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 1.5630%, 3.8870%, 1/10/28‡ | | 7,574,000 | | | 8,429,452 | |
| | Citigroup Inc, SOFR + 1.4220%, 2.9760%, 11/5/30‡ | | 3,481,000 | | | 3,687,012 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 4.0680%, 5.9500%‡,µ | | 6,781,000 | | | 7,129,238 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 3.4660%, 5.3500%‡,µ | | 4,013,000 | | | 4,163,554 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 3.4230%, 6.3000%‡,µ | | 916,000 | | | 985,341 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 3.9050%, 5.9500%‡,µ | | 4,099,000 | | | 4,486,151 | |
| | Citigroup Inc, SOFR + 3.8130%, 5.0000%‡,µ | | 4,169,000 | | | 4,363,275 | |
| | Credit Agricole SA, 4.3750%, 3/17/25 (144A) | | 4,128,000 | | | 4,539,362 | |
| | Credit Agricole SA, 3.2500%, 1/14/30 (144A) | | 7,499,000 | | | 7,894,611 | |
| | Credit Agricole SA/London, SOFR + 1.6760%, 1.9070%, 6/16/26 (144A)‡ | | 1,687,000 | | | 1,719,965 | |
| | Goldman Sachs Group Inc, 3.5000%, 4/1/25 | | 10,545,000 | | | 11,440,242 | |
| | Goldman Sachs Group Inc, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.2240%, 4.9500%‡,µ | | 2,745,000 | | | 2,934,021 | |
| | HSBC Holdings PLC, SOFR + 1.5380%, 1.6450%, 4/18/26‡ | | 6,726,000 | | | 6,816,180 | |
| | HSBC Holdings PLC, SOFR + 1.2900%, 1.5890%, 5/24/27‡ | | 11,810,000 | | | 11,832,763 | |
| | JPMorgan Chase & Co, SOFR + 1.8500%, 2.0830%, 4/22/26‡ | | 3,788,000 | | | 3,916,959 | |
| | JPMorgan Chase & Co, ICE LIBOR USD 3 Month + 1.2450%, 3.9600%, 1/29/27‡ | | 10,483,000 | | | 11,673,922 | |
| | JPMorgan Chase & Co, SOFR + 0.8850%, 1.5780%, 4/22/27‡ | | 10,096,000 | | | 10,148,308 | |
| | JPMorgan Chase & Co, SOFR + 2.5150%, 2.9560%, 5/13/31‡ | | 18,739,000 | | | 19,685,444 | |
| | JPMorgan Chase & Co, SOFR + 3.3800%, 5.0000%, 7/31/69‡ | | 3,293,000 | | | 3,480,536 | |
| | JPMorgan Chase & Co, SOFR + 3.1250%, 4.6000%, 1/23/70‡ | | 3,476,000 | | | 3,602,179 | |
| | Morgan Stanley, SOFR + 1.9900%, 2.1880%, 4/28/26‡ | | 11,145,000 | | | 11,571,872 | |
| | Morgan Stanley, 3.9500%, 4/23/27 | | 9,471,000 | | | 10,582,594 | |
| | Morgan Stanley, SOFR + 0.8790%, 1.5930%, 5/4/27‡ | | 4,849,000 | | | 4,883,308 | |
| | Morgan Stanley, SOFR + 1.0340%, 1.7940%, 2/13/32‡ | | 9,092,000 | | | 8,735,703 | |
| | National Australia Bank Ltd, 2.9900%, 5/21/31 (144A) | | 11,931,000 | | | 12,113,474 | |
| | Natwest Group PLC, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 2.3500%, 3.0320%, 11/28/35‡ | | 9,086,000 | | | 9,100,538 | |
| | SVB Financial Group, 3.1250%, 6/5/30 | | 11,600,000 | | | 12,345,574 | |
| | SVB Financial Group, 1.8000%, 2/2/31 | | 4,156,000 | | | 3,975,298 | |
| | SVB Financial Group, | | | | | | |
| | US Treasury Yield Curve Rate 10 Year + 3.0640%, 4.1000%‡,µ | | 10,526,000 | | | 10,677,259 | |
| | Westpac Banking Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 1.7500%, 2.6680%, 11/15/35‡ | | 9,029,000 | | | 8,881,105 | |
| | | 325,175,322 | |
Basic Industry – 1.0% | | | |
| | Axalta Coating Systems Ltd, 3.3750%, 2/15/29 (144A) | | 12,659,000 | | | 12,374,172 | |
| | Element Solutions Inc, 3.8750%, 9/1/28 (144A) | | 9,595,000 | | | 9,789,778 | |
| | Georgia-Pacific LLC, 3.1630%, 11/15/21 (144A) | | 5,642,000 | | | 5,675,135 | |
| | Reliance Steel & Aluminum Co, 4.5000%, 4/15/23 | | 11,277,000 | | | 11,939,010 | |
| | | 39,778,095 | |
Brokerage – 0.6% | | | |
| | Charles Schwab Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 4.9710%, 5.3750%‡,µ | | 17,082,000 | | | 18,880,735 | |
| | Charles Schwab Corp, | | | | | | |
| | US Treasury Yield Curve Rate 10 Year + 3.0790%, 4.0000%‡,µ | | 5,521,000 | | | 5,647,983 | |
| | | 24,528,718 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Capital Goods – 1.7% | | | |
| | Boeing Co, 4.5080%, 5/1/23 | | $9,038,000 | | | $9,635,364 | |
| | Boeing Co, 4.8750%, 5/1/25 | | 6,657,000 | | | 7,458,957 | |
| | Boeing Co, 2.1960%, 2/4/26 | | 3,268,000 | | | 3,299,236 | |
| | Boeing Co, 3.2500%, 2/1/28 | | 3,485,000 | | | 3,694,413 | |
| | Boeing Co, 3.6250%, 2/1/31 | | 7,402,000 | | | 7,961,059 | |
| | Boeing Co, 3.9500%, 8/1/59 | | 4,573,000 | | | 4,784,430 | |
| | TransDigm Inc, 4.6250%, 1/15/29 (144A) | | 15,374,000 | | | 15,379,381 | |
| | Wabtec Corp, 4.4000%, 3/15/24 | | 3,524,000 | | | 3,818,210 | |
| | Wabtec Corp, 4.9500%, 9/15/28 | | 4,932,000 | | | 5,721,054 | |
| | Westinghouse Air Brake Technologies Corp, 3.2000%, 6/15/25 | | 3,644,000 | | | 3,875,393 | |
| | | 65,627,497 | |
Communications – 4.5% | | | |
| | CCO Holdings LLC / CCO Holdings Capital Corp, 4.2500%, 2/1/31 (144A) | | 10,815,000 | | | 11,017,781 | |
| | CCO Holdings LLC / CCO Holdings Capital Corp, 4.5000%, 5/1/32 | | 17,008,000 | | | 17,624,540 | |
| | Cellnex Finance Co SA, 3.8750%, 7/7/41 (144A) | | 8,243,000 | | | 8,213,408 | |
| | CenturyLink Inc, 5.8000%, 3/15/22 | | 3,536,000 | | | 3,638,862 | |
| | Charter Communications Operating LLC / Charter Communications Operating | | | | | | |
| | Capital, 6.4840%, 10/23/45 | | 1,937,000 | | | 2,667,601 | |
| | Charter Communications Operating LLC / Charter Communications Operating | | | | | | |
| | Capital, 5.3750%, 5/1/47 | | 1,551,000 | | | 1,900,611 | |
| | Charter Communications Operating LLC / Charter Communications Operating | | | | | | |
| | Capital, 4.8000%, 3/1/50 | | 3,731,000 | | | 4,285,236 | |
| | Crown Castle International Corp, 3.6500%, 9/1/27 | | 4,548,000 | | | 5,014,594 | |
| | Crown Castle International Corp, 3.1000%, 11/15/29 | | 5,657,000 | | | 6,001,847 | |
| | CSC Holdings LLC, 4.1250%, 12/1/30 (144A) | | 8,595,000 | | | 8,541,281 | |
| | CSC Holdings LLC, 4.6250%, 12/1/30 (144A) | | 8,660,000 | | | 8,496,413 | |
| | CSC Holdings LLC, 3.3750%, 2/15/31 (144A) | | 6,993,000 | | | 6,607,756 | |
| | CSC Holdings LLC, 5.0000%, 11/15/31 (144A) | | 4,156,000 | | | 4,175,949 | |
| | GCI LLC, 4.7500%, 10/15/28 (144A) | | 16,183,000 | | | 16,563,300 | |
| | Level 3 Financing Inc, 3.8750%, 11/15/29 (144A) | | 7,263,000 | | | 7,778,891 | |
| | Netflix Inc, 3.6250%, 6/15/25 (144A) | | 18,841,000 | | | 20,232,219 | |
| | Sirius XM Radio Inc, 4.1250%, 7/1/30 (144A) | | 12,475,000 | | | 12,585,778 | |
| | T-Mobile USA Inc, 2.2500%, 2/15/26 | | 4,409,000 | | | 4,442,068 | |
| | T-Mobile USA Inc, 2.6250%, 2/15/29 | | 11,074,000 | | | 10,935,575 | |
| | T-Mobile USA Inc, 3.0000%, 2/15/41 | | 4,890,000 | | | 4,829,706 | |
| | Verizon Communications Inc, 3.0000%, 3/22/27 | | 1,508,000 | | | 1,622,804 | |
| | Verizon Communications Inc, 2.1000%, 3/22/28 | | 2,915,000 | | | 2,975,968 | |
| | Verizon Communications Inc, 3.5500%, 3/22/51 | | 4,925,000 | | | 5,261,706 | |
| | | 175,413,894 | |
Consumer Cyclical – 3.6% | | | |
| | 1011778 BC ULC / New Red Finance Inc, 4.0000%, 10/15/30 (144A) | | 17,636,000 | | | 17,062,830 | |
| | Choice Hotels International Inc, 3.7000%, 12/1/29 | | 7,759,000 | | | 8,399,195 | |
| | Choice Hotels International Inc, 3.7000%, 1/15/31 | | 2,003,000 | | | 2,167,526 | |
| | Experian Finance PLC, 2.7500%, 3/8/30 (144A) | | 9,459,000 | | | 9,775,725 | |
| | GLP Capital LP / GLP Financing II Inc, 5.2500%, 6/1/25 | | 2,969,000 | | | 3,342,055 | |
| | GLP Capital LP / GLP Financing II Inc, 5.3750%, 4/15/26 | | 5,592,000 | | | 6,436,448 | |
| | GLP Capital LP / GLP Financing II Inc, 5.3000%, 1/15/29 | | 603,000 | | | 702,495 | |
| | GLP Capital LP / GLP Financing II Inc, 4.0000%, 1/15/30 | | 9,678,000 | | | 10,387,494 | |
| | GoDaddy Operating Co LLC / GD Finance Co Inc, 3.5000%, 3/1/29 (144A) | | 12,534,000 | | | 12,452,529 | |
| | IHS Markit Ltd, 5.0000%, 11/1/22 (144A) | | 4,867,000 | | | 5,098,372 | |
| | IHS Markit Ltd, 4.7500%, 2/15/25 (144A) | | 11,491,000 | | | 12,864,174 | |
| | Lithia Motors Inc, 3.8750%, 6/1/29 (144A) | | 12,911,000 | | | 13,382,897 | |
| | MDC Holdings Inc, 5.5000%, 1/15/24 | | 6,761,000 | | | 7,407,690 | |
| | MGM Resorts International, 7.7500%, 3/15/22 | | 1,300,000 | | | 1,358,760 | |
| | Nordstrom Inc, 4.3750%, 4/1/30# | | 6,803,000 | | | 7,088,738 | |
| | Service Corp International/US, 3.3750%, 8/15/30 | | 3,472,000 | | | 3,401,866 | |
| | Service Corporation International, 4.0000%, 5/15/31 | | 8,179,000 | | | 8,348,101 | |
| | Yum! Brands Inc, 4.6250%, 1/31/32 | | 8,778,000 | | | 9,216,900 | |
| | | 138,893,795 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Consumer Non-Cyclical – 4.6% | | | |
| | Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide Inc, | | | | | | |
| | 4.9000%, 2/1/46 | | $8,875,000 | | | $11,233,532 | |
| | Aramark Services Inc, 6.3750%, 5/1/25 (144A) | | 8,859,000 | | | 9,412,688 | |
| | Coca-Cola Femsa SAB de CV, 2.7500%, 1/22/30 | | 4,557,000 | | | 4,744,202 | |
| | DaVita Inc, 4.6250%, 6/1/30 (144A) | | 7,041,000 | | | 7,239,697 | |
| | DaVita Inc, 3.7500%, 2/15/31 (144A) | | 9,267,000 | | | 8,896,320 | |
| | Elanco Animal Health Inc, 5.2720%, 8/28/23 | | 7,651,000 | | | 8,229,339 | |
| | Hasbro Inc, 3.9000%, 11/19/29 | | 15,128,000 | | | 16,820,526 | |
| | Hasbro Inc, 6.3500%, 3/15/40 | | 1,354,000 | | | 1,887,700 | |
| | Hasbro Inc, 5.1000%, 5/15/44 | | 8,739,000 | | | 10,682,343 | |
| | HCA Inc, 5.3750%, 2/1/25 | | 3,852,000 | | | 4,345,056 | |
| | HCA Inc, 3.5000%, 9/1/30 | | 5,585,000 | | | 5,950,091 | |
| | HCA Inc, 5.5000%, 6/15/47 | | 1,696,000 | | | 2,208,908 | |
| | HCA Inc, 5.2500%, 6/15/49 | | 2,544,000 | | | 3,242,816 | |
| | HCA Inc, 3.5000%, 7/15/51 | | 7,748,000 | | | 7,744,470 | |
| | JBS Finance Luxembourg Sarl, 3.6250%, 1/15/32 (144A) | | 5,544,000 | | | 5,542,281 | |
| | JBS USA LUX SA / JBS USA Finance Inc, 6.7500%, 2/15/28 (144A) | | 4,307,000 | | | 4,732,316 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 6.5000%, 4/15/29 (144A) | | 10,966,000 | | | 12,323,152 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 5.5000%, 1/15/30 (144A) | | 9,007,000 | | | 10,073,249 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 3.7500%, 12/1/31 (144A) | | 5,243,000 | | | 5,364,900 | |
| | Kraft Heinz Foods Co, 3.8750%, 5/15/27 | | 6,964,000 | | | 7,651,858 | |
| | Kraft Heinz Foods Co, 5.0000%, 6/4/42 | | 4,788,000 | | | 5,846,619 | |
| | Kraft Heinz Foods Co, 4.3750%, 6/1/46 | | 1,378,000 | | | 1,561,548 | |
| | Kraft Heinz Foods Co, 4.8750%, 10/1/49 | | 3,221,000 | | | 3,910,137 | |
| | Organon Finance 1 LLC, 4.1250%, 4/30/28 (144A) | | 9,786,000 | | | 9,979,763 | |
| | Royalty Pharma PLC, 3.5500%, 9/2/50 (144A) | | 6,478,000 | | | 6,443,314 | |
| | Sysco Corp, 6.6000%, 4/1/50 | | 2,274,000 | | | 3,532,348 | |
| | | 179,599,173 | |
Electric – 2.1% | | | |
| | CMS Energy Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 4.1160%, 4.7500%, 6/1/50‡ | | 8,111,000 | | | 9,038,696 | |
| | Dominion Energy Inc, 3.3750%, 4/1/30 | | 5,802,000 | | | 6,317,858 | |
| | Duquesne Light Holdings Inc, 2.7750%, 1/7/32 (144A) | | 7,047,000 | | | 7,101,238 | |
| | East Ohio Gas Co/The, 2.0000%, 6/15/30 (144A) | | 964,000 | | | 953,020 | |
| | IPALCO Enterprises Inc, 4.2500%, 5/1/30 | | 8,732,000 | | | 9,806,555 | |
| | NextEra Energy Capital Holdings Inc, 2.7500%, 5/1/25 | | 3,856,000 | | | 4,095,320 | |
| | NRG Energy Inc, 7.2500%, 5/15/26 | | 12,820,000 | | | 13,289,276 | |
| | NRG Energy Inc, 6.6250%, 1/15/27 | | 5,390,000 | | | 5,579,836 | |
| | NRG Energy Inc, 3.3750%, 2/15/29 (144A) | | 7,842,000 | | | 7,675,514 | |
| | NRG Energy Inc, 3.6250%, 2/15/31 (144A) | | 8,854,000 | | | 8,700,826 | |
| | Pacific Gas and Electric Co, 3.0000%, 6/15/28 | | 8,322,000 | | | 8,359,433 | |
| | | 80,917,572 | |
Energy – 2.1% | | | |
| | Cheniere Corpus Christi Holdings LLC, 3.7000%, 11/15/29 | | 8,768,000 | | | 9,577,129 | |
| | Cheniere Energy Inc, 4.6250%, 10/15/28 (144A) | | 9,242,000 | | | 9,750,310 | |
| | Cheniere Energy Partners LP, 4.0000%, 3/1/31 (144A) | | 5,833,000 | | | 6,095,485 | |
| | Continental Resources Inc, 5.7500%, 1/15/31 (144A) | | 8,866,000 | | | 10,617,035 | |
| | Energy Transfer Operating LP, 5.8750%, 1/15/24 | | 5,520,000 | | | 6,116,735 | |
| | Energy Transfer Operating LP, 5.5000%, 6/1/27 | | 991,000 | | | 1,162,230 | |
| | EQT Corp, 3.1250%, 5/15/26 (144A) | | 13,469,000 | | | 13,801,819 | |
| | Hess Midstream Operations LP, 5.1250%, 6/15/28 (144A) | | 13,236,000 | | | 13,881,255 | |
| | NGPL PipeCo LLC, 3.2500%, 7/15/31 (144A) | | 3,342,000 | | | 3,444,363 | |
| | ONEOK Inc, 6.3500%, 1/15/31 | | 5,099,000 | | | 6,593,833 | |
| | ONEOK Inc, 7.1500%, 1/15/51 | | 1,261,000 | | | 1,853,771 | |
| | | 82,893,965 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Finance Companies – 1.4% | | | |
| | AerCap Ireland Capital DAC / AerCap Global Aviation Trust, | | | | | | |
| | 4.6250%, 10/15/27 | | $7,710,000 | | | $8,634,686 | |
| | Air Lease Corp, 1.8750%, 8/15/26 | | 7,478,000 | | | 7,483,779 | |
| | Air Lease Corp, 3.0000%, 2/1/30 | | 3,698,000 | | | 3,750,974 | |
| | GE Capital International Funding Co Unlimited Co, 4.4180%, 11/15/35 | | 13,035,000 | | | 15,622,206 | |
| | Quicken Loans LLC, 3.6250%, 3/1/29 (144A) | | 7,327,000 | | | 7,235,413 | |
| | Quicken Loans LLC, 3.8750%, 3/1/31 (144A) | | 11,034,000 | | | 11,116,645 | |
| | | 53,843,703 | |
Financial Institutions – 0.2% | | | |
| | Jones Lang LaSalle Inc, 4.4000%, 11/15/22 | | 8,473,000 | | | 8,812,531 | |
Industrial Conglomerates – 0.3% | | | |
| | General Electric Co, ICE LIBOR USD 3 Month + 3.3300%, 3.4489%‡,µ | | 11,629,000 | | | 11,396,420 | |
Information Technology Services – 0.2% | | | |
| | Booz Allen Hamilton Inc, 3.8750%, 9/1/28 (144A) | | 9,048,000 | | | 9,228,960 | |
Insurance – 2.2% | | | |
| | Athene Holding Ltd, 3.9500%, 5/25/51 | | 9,566,000 | | | 10,234,522 | |
| | Brown & Brown Inc, 4.5000%, 3/15/29 | | 5,418,000 | | | 6,232,069 | |
| | Brown & Brown Inc, 2.3750%, 3/15/31 | | 910,000 | | | 909,223 | |
| | Centene Corp, 4.2500%, 12/15/27 | | 9,782,000 | | | 10,307,782 | |
| | Centene Corp, 2.4500%, 7/15/28 | | 9,453,000 | | | 9,580,615 | |
| | Centene Corp, 3.0000%, 10/15/30 | | 15,107,000 | | | 15,519,119 | |
| | Centene Corp, 2.5000%, 3/1/31 | | 2,493,000 | | | 2,458,721 | |
| | Molina Healthcare Inc, 4.3750%, 6/15/28 (144A) | | 18,350,000 | | | 19,129,875 | |
| | Prudential Financial Inc, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.0350%, 3.7000%, 10/1/50‡ | | 13,066,000 | | | 13,621,305 | |
| | | 87,993,231 | |
Real Estate Investment Trusts (REITs) – 2.3% | | | |
| | Agree LP, 2.9000%, 10/1/30 | | 11,683,000 | | | 12,189,850 | |
| | American Homes 4 Rent LP, 2.3750%, 7/15/31 | | 3,727,000 | | | 3,671,580 | |
| | American Homes 4 Rent LP, 3.3750%, 7/15/51 | | 4,476,000 | | | 4,384,779 | |
| | CTR Partnership LP / CareTrust Capital Corp, 3.8750%, 6/30/28 (144A) | | 12,921,000 | | | 13,193,892 | |
| | Lexington Realty Trust, 2.7000%, 9/15/30 | | 10,681,000 | | | 10,857,245 | |
| | MPT Operating Partnership LP / MPT Finance Corp, 3.5000%, 3/15/31 | | 8,967,000 | | | 9,056,580 | |
| | Omega Healthcare Investors Inc, 3.2500%, 4/15/33 | | 18,983,000 | | | 18,942,596 | |
| | Rexford Industrial Realty Inc, 2.1250%, 12/1/30 | | 8,832,000 | | | 8,488,503 | |
| | Sun Communities Inc, 2.7000%, 7/15/31 | | 8,985,000 | | | 8,984,089 | |
| | | 89,769,114 | |
Technology – 6.3% | | | |
| | Broadcom Inc, 4.1500%, 11/15/30 | | 8,584,000 | | | 9,626,227 | |
| | Broadcom Inc, 4.3000%, 11/15/32 | | 6,344,000 | | | 7,224,075 | |
| | Broadcom Inc, 3.4190%, 4/15/33 (144A) | | 7,643,000 | | | 8,026,406 | |
| | Broadcom Inc, 3.4690%, 4/15/34 (144A) | | 11,487,000 | | | 12,150,426 | |
| | Broadridge Financial Solutions Inc, 2.6000%, 5/1/31 | | 7,723,000 | | | 7,863,890 | |
| | Cadence Design Systems Inc, 4.3750%, 10/15/24 | | 18,064,000 | | | 19,865,208 | |
| | CoStar Group Inc, 2.8000%, 7/15/30 (144A) | | 9,503,000 | | | 9,653,723 | |
| | Marvell Technology Inc, 4.2000%, 6/22/23 (144A) | | 3,313,000 | | | 3,522,078 | |
| | Marvell Technology Inc, 1.6500%, 4/15/26 (144A) | | 5,742,000 | | | 5,738,687 | |
| | Marvell Technology Inc, 4.8750%, 6/22/28 (144A) | | 6,709,000 | | | 7,755,611 | |
| | Marvell Technology Inc, 2.9500%, 4/15/31 (144A) | | 9,097,000 | | | 9,427,867 | |
| | Microchip Technology Inc, 2.6700%, 9/1/23 | | 9,518,000 | | | 9,913,183 | |
| | Microchip Technology Inc, 4.2500%, 9/1/25 | | 7,598,000 | | | 7,976,881 | |
| | MSCI Inc, 3.6250%, 9/1/30 (144A) | | 6,135,000 | | | 6,274,019 | |
| | MSCI Inc, 3.8750%, 2/15/31 (144A) | | 11,796,000 | | | 12,241,417 | |
| | Qorvo Inc, 3.3750%, 4/1/31 (144A) | | 9,860,000 | | | 10,276,289 | |
| | Seagate HDD Cayman, 4.8750%, 6/1/27 | | 308,000 | | | 339,570 | |
| | Seagate HDD Cayman, 4.0910%, 6/1/29 (144A) | | 2,456,000 | | | 2,514,453 | |
| | Seagate HDD Cayman, 3.1250%, 7/15/29 (144A) | | 1,518,000 | | | 1,470,813 | |
| | Seagate HDD Cayman, 4.1250%, 1/15/31 (144A) | | 2,531,000 | | | 2,581,620 | |
| | Sensata Technologies Inc, 3.7500%, 2/15/31 (144A) | | 3,326,000 | | | 3,288,849 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Technology– (continued) | | | |
| | SK Hynix Inc, 1.5000%, 1/19/26 (144A) | | $7,758,000 | | | $7,652,646 | |
| | SK Hynix Inc, 2.3750%, 1/19/31 (144A) | | 5,044,000 | | | 4,911,497 | |
| | Skyworks Solutions Inc, 0.9000%, 6/1/23 | | 1,682,000 | | | 1,687,001 | |
| | Skyworks Solutions Inc, 1.8000%, 6/1/26 | | 2,620,000 | | | 2,653,007 | |
| | Skyworks Solutions Inc, 3.0000%, 6/1/31 | | 2,352,000 | | | 2,404,002 | |
| | Switch Ltd, 4.1250%, 6/15/29 (144A) | | 6,085,000 | | | 6,244,731 | |
| | Total System Services Inc, 4.8000%, 4/1/26 | | 15,432,000 | | | 17,643,561 | |
| | Trimble Inc, 4.7500%, 12/1/24 | | 10,216,000 | | | 11,349,270 | |
| | Trimble Inc, 4.9000%, 6/15/28 | | 5,033,000 | | | 5,902,848 | |
| | TSMC Global Ltd, 1.2500%, 4/23/26 (144A) | | 9,674,000 | | | 9,590,059 | |
| | TSMC Global Ltd, 1.7500%, 4/23/28 (144A) | | 9,638,000 | | | 9,635,301 | |
| | Twilio Inc, 3.6250%, 3/15/29 | | 3,499,000 | | | 3,568,980 | |
| | Twilio Inc, 3.8750%, 3/15/31 | | 3,499,000 | | | 3,590,849 | |
| | | 244,565,044 | |
Transportation – 0.3% | | | |
| | GXO Logistics inc, 1.6500%, 7/15/26 (144A) | | 6,199,000 | | | 6,167,757 | |
| | GXO Logistics inc, 2.6500%, 7/15/31 (144A) | | 4,100,000 | | | 4,067,077 | |
| | | 10,234,834 | |
Total Corporate Bonds (cost $1,569,068,787) | | 1,628,671,868 | |
Inflation-Indexed Bonds– 4.0% | | | |
| | United States Treasury Inflation Indexed Bonds, 0.6250%, 4/15/23ÇÇ | | 46,137,054 | | | 48,803,451 | |
| | United States Treasury Inflation Indexed Bonds, 0.1250%, 4/15/26ÇÇ | | 71,516,614 | | | 77,792,942 | |
| | United States Treasury Inflation Indexed Bonds, 0.1250%, 1/15/31ÇÇ | | 28,550,240 | | | 31,416,789 | |
Total Inflation-Indexed Bonds (cost $158,032,135) | | 158,013,182 | |
Mortgage-Backed Securities– 16.5% | | | |
Fannie Mae: | | | |
| | 1.5000%, TBA, 15 Year Maturity | | 2,307,597 | | | 2,334,573 | |
| | 2.0000%, TBA, 15 Year Maturity | | 17,396,694 | | | 17,941,558 | |
| | 2.5000%, TBA, 15 Year Maturity | | 2,932,700 | | | 3,057,926 | |
| | 2.0000%, TBA, 30 Year Maturity | | 49,539,055 | | | 50,041,876 | |
| | 2.5000%, TBA, 30 Year Maturity | | 128,216,042 | | | 132,588,209 | |
| | 3.5000%, TBA, 30 Year Maturity | | 11,048,000 | | | 11,628,020 | |
| | | 217,592,162 | |
Fannie Mae Pool: | | | |
| | 3.0000%, 10/1/34 | | 39,923 | | | 42,295 | |
| | 2.5000%, 11/1/34 | | 3,353,281 | | | 3,529,259 | |
| | 3.0000%, 11/1/34 | | 202,236 | | | 215,476 | |
| | 3.0000%, 12/1/34 | | 210,918 | | | 224,531 | |
| | 6.0000%, 2/1/37 | | 1,018,001 | | | 1,206,622 | |
| | 4.5000%, 11/1/42 | | 1,025,080 | | | 1,136,059 | |
| | 3.0000%, 1/1/43 | | 182,824 | | | 193,882 | |
| | 3.0000%, 2/1/43 | | 356,734 | | | 379,046 | |
| | 3.0000%, 5/1/43 | | 1,196,964 | | | 1,258,940 | |
| | 5.0000%, 7/1/44 | | 6,037,836 | | | 6,773,998 | |
| | 4.5000%, 10/1/44 | | 2,450,911 | | | 2,748,933 | |
| | 4.5000%, 3/1/45 | | 3,580,968 | | | 4,016,400 | |
| | 4.5000%, 6/1/45 | | 2,040,365 | | | 2,266,780 | |
| | 3.5000%, 12/1/45 | | 1,556,498 | | | 1,660,417 | |
| | 4.5000%, 2/1/46 | | 3,652,288 | | | 4,047,697 | |
| | 3.5000%, 7/1/46 | | 8,555,767 | | | 9,261,254 | |
| | 3.0000%, 9/1/46 | | 3,429,885 | | | 3,641,215 | |
| | 3.0000%, 1/1/47 | | 12,003,399 | | | 12,742,981 | |
| | 3.0000%, 2/1/47 | | 46,047,934 | | | 48,988,413 | |
| | 3.5000%, 3/1/47 | | 1,344,802 | | | 1,434,587 | |
| | 3.5000%, 7/1/47 | | 1,152,965 | | | 1,229,943 | |
| | 3.5000%, 8/1/47 | | 2,639,464 | | | 2,790,300 | |
| | 3.0000%, 2/1/48 | | 481,982 | | | 515,760 | |
| | 3.0000%, 5/1/48 | | 212,927 | | | 225,050 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Fannie Mae Pool– (continued) | | | |
| | 5.0000%, 5/1/48 | | $1,088,315 | | | $1,189,100 | |
| | 3.5000%, 7/1/48 | | 32,228,385 | | | 34,250,322 | |
| | 3.0000%, 11/1/48 | | 5,595,036 | | | 5,884,734 | |
| | 4.0000%, 2/1/49 | | 1,861,250 | | | 1,984,604 | |
| | 3.0000%, 8/1/49 | | 2,279,869 | | | 2,422,694 | |
| | 3.0000%, 8/1/49 | | 627,544 | | | 666,857 | |
| | 3.0000%, 9/1/49 | | 295,491 | | | 311,426 | |
| | 2.5000%, 1/1/50 | | 794,830 | | | 825,326 | |
| | 2.5000%, 10/1/50 | | 2,614,818 | | | 2,709,448 | |
| | 2.5000%, 1/1/51 | | 8,038,485 | | | 8,315,417 | |
| | 3.5000%, 8/1/56 | | 23,936,106 | | | 25,983,950 | |
| | 3.0000%, 2/1/57 | | 13,329,346 | | | 14,161,729 | |
| | 3.0000%, 6/1/57 | | 51,643 | | | 54,868 | |
| | | 209,290,313 | |
Freddie Mac Gold Pool: | | | |
| | 3.5000%, 1/1/47 | | 973,971 | | | 1,049,245 | |
Freddie Mac Pool: | | | |
| | 3.0000%, 5/1/31 | | 13,020,055 | | | 13,767,620 | |
| | 3.0000%, 9/1/32 | | 393,189 | | | 416,534 | |
| | 3.0000%, 10/1/32 | | 506,105 | | | 533,568 | |
| | 3.0000%, 1/1/33 | | 274,042 | | | 290,313 | |
| | 2.5000%, 12/1/33 | | 10,789,480 | | | 11,299,657 | |
| | 3.0000%, 10/1/34 | | 82,357 | | | 87,480 | |
| | 3.0000%, 10/1/34 | | 34,590 | | | 36,644 | |
| | 2.5000%, 11/1/34 | | 2,927,323 | | | 3,081,271 | |
| | 2.5000%, 11/1/34 | | 1,346,032 | | | 1,416,820 | |
| | 6.0000%, 4/1/40 | | 1,761,083 | | | 2,095,669 | |
| | 2.0000%, 5/1/41 | | 37,832,029 | | | 38,634,900 | |
| | 3.5000%, 7/1/42 | | 65,504 | | | 70,555 | |
| | 3.5000%, 8/1/42 | | 86,833 | | | 93,527 | |
| | 3.5000%, 8/1/42 | | 69,945 | | | 75,338 | |
| | 3.5000%, 2/1/43 | | 3,781,563 | | | 4,077,567 | |
| | 3.0000%, 3/1/43 | | 982,440 | | | 1,043,176 | |
| | 3.0000%, 6/1/43 | | 147,203 | | | 153,859 | |
| | 3.5000%, 2/1/44 | | 5,426,935 | | | 5,851,732 | |
| | 4.5000%, 5/1/44 | | 1,821,125 | | | 2,023,222 | |
| | 3.5000%, 12/1/44 | | 63,949 | | | 68,663 | |
| | 3.0000%, 1/1/46 | | 127,285 | | | 136,684 | |
| | 4.0000%, 2/1/46 | | 4,509,349 | | | 4,976,483 | |
| | 3.0000%, 8/1/46 | | 741,523 | | | 779,892 | |
| | 4.0000%, 3/1/47 | | 11,740 | | | 12,743 | |
| | 3.0000%, 4/1/47 | | 1,127,458 | | | 1,185,796 | |
| | 3.5000%, 4/1/47 | | 58,806 | | | 63,692 | |
| | 3.5000%, 9/1/47 | | 21,458 | | | 22,684 | |
| | 4.5000%, 7/1/48 | | 1,441,836 | | | 1,552,348 | |
| | 5.0000%, 9/1/48 | | 517,627 | | | 566,828 | |
| | 3.0000%, 8/1/49 | | 682,705 | | | 725,527 | |
| | 3.0000%, 12/1/49 | | 1,242,443 | | | 1,295,085 | |
| | 3.0000%, 12/1/49 | | 726,117 | | | 756,883 | |
| | 2.5000%, 1/1/50 | | 325,975 | | | 338,498 | |
| | 3.0000%, 3/1/50 | | 446,867 | | | 466,606 | |
| | | 97,997,864 | |
Ginnie Mae: | | | |
| | 2.0000%, TBA, 30 Year Maturity | | 68,003,000 | | | 69,246,095 | |
| | 2.5000%, TBA, 30 Year Maturity | | 17,675,329 | | | 18,282,300 | |
| | | 87,528,395 | |
Ginnie Mae I Pool: | | | |
| | 4.0000%, 8/15/47 | | 1,323,046 | | | 1,445,537 | |
| | 4.0000%, 11/15/47 | | 1,767,978 | | | 1,931,662 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Ginnie Mae I Pool– (continued) | | | |
| | 4.0000%, 12/15/47 | | $2,188,774 | | | $2,391,416 | |
| | | 5,768,615 | |
Ginnie Mae II Pool: | | | |
| | 4.0000%, 8/20/47 | | 504,991 | | | 541,652 | |
| | 4.0000%, 8/20/47 | | 247,599 | | | 266,347 | |
| | 4.5000%, 2/20/48 | | 3,232,869 | | | 3,486,796 | |
| | 4.0000%, 5/20/48 | | 12,967,060 | | | 13,784,668 | |
| | 4.5000%, 5/20/48 | | 727,015 | | | 790,718 | |
| | 4.0000%, 6/20/48 | | 3,633,637 | | | 3,859,341 | |
| | 5.0000%, 8/20/48 | | 4,049,971 | | | 4,396,499 | |
| | | 27,126,021 | |
Total Mortgage-Backed Securities (cost $636,422,670) | | 646,352,615 | |
United States Treasury Notes/Bonds– 17.6% | | | |
| | 0.1250%, 2/28/23 | | 46,919,000 | | | 46,860,351 | |
| | 0.1250%, 4/30/23 | | 130,012,000 | | | 129,768,227 | |
| | 0.2500%, 5/15/24 | | 15,017,000 | | | 14,934,876 | |
| | 0.3750%, 1/31/26 | | 22,820,900 | | | 22,363,591 | |
| | 0.5000%, 2/28/26 | | 93,880,000 | | | 92,457,131 | |
| | 0.7500%, 4/30/26 | | 78,674,000 | | | 78,274,484 | |
| | 1.1250%, 2/29/28 | | 3,194,200 | | | 3,184,717 | |
| | 1.2500%, 4/30/28 | | 4,581,400 | | | 4,595,717 | |
| | 1.1250%, 2/15/31 | | 11,594,700 | | | 11,255,917 | |
| | 1.6250%, 5/15/31 | | 2,665,000 | | | 2,705,808 | |
| | 1.1250%, 5/15/40 | | 15,941,000 | | | 13,761,566 | |
| | 1.3750%, 11/15/40 | | 18,848,000 | | | 16,930,805 | |
| | 1.8750%, 2/15/41 | | 18,538,000 | | | 18,146,964 | |
| | 2.2500%, 5/15/41 | | 14,509,000 | | | 15,096,161 | |
| | 2.7500%, 8/15/42 | | 54,525,300 | | | 61,441,068 | |
| | 1.3750%, 8/15/50 | | 73,904,400 | | | 62,301,986 | |
| | 1.6250%, 11/15/50 | | 83,854,800 | | | 75,312,092 | |
| | 1.8750%, 2/15/51 | | 20,456,400 | | | 19,523,077 | |
Total United States Treasury Notes/Bonds (cost $692,387,327) | | 688,914,538 | |
Preferred Stocks– 0.6% | | | |
Banks – 0.6% | | | |
| | First Republic Bank/CA, 4.1250%#,µ | | 398,800 | | | 10,229,220 | |
| | Truist Financial Corp, 4.7500%µ | | 448,200 | | | 11,931,084 | |
Total Preferred Stocks (cost $21,175,000) | | 22,160,304 | |
Investment Companies– 10.2% | | | |
Money Markets – 10.2% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº,£((cost $397,499,754) | | 397,460,008 | | | 397,499,754 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.2% | | | |
Investment Companies – 0.1% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 4,656,936 | | | 4,656,936 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.0500%, 7/1/21 | | $1,174,959 | | | 1,174,959 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $5,831,895) | | 5,831,895 | |
Total Investments (total cost $4,193,339,433) – 109.4% | | 4,272,693,862 | |
Liabilities, net of Cash, Receivables and Other Assets – (9.4)% | | (366,239,817) | |
Net Assets – 100% | | $3,906,454,045 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $4,067,706,910 | | 95.2 | % |
United Kingdom | | 49,009,836 | | 1.1 | |
France | | 36,086,383 | | 0.8 | |
Australia | | 20,994,579 | | 0.5 | |
Taiwan | | 19,225,360 | | 0.5 | |
Canada | | 17,062,830 | | 0.4 | |
Luxembourg | | 13,783,761 | | 0.3 | |
South Korea | | 12,564,143 | | 0.3 | |
Ireland | | 12,068,918 | | 0.3 | |
Belgium | | 11,233,532 | | 0.3 | |
Spain | | 8,213,408 | | 0.2 | |
Mexico | | 4,744,202 | �� | 0.1 | |
| | | | | | |
| | | | | | |
Total | | $4,272,693,862 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 6/30/21 |
Investment Companies - 10.2% |
Money Markets - 10.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | $ | 212,169 | $ | (13,580) | $ | - | $ | 397,499,754 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 74,241∆ | | - | | - | | 4,656,936 |
Total Affiliated Investments - 10.3% | $ | 286,410 | $ | (13,580) | $ | - | $ | 402,156,690 |
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 10.2% |
Money Markets - 10.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | | 232,545,984 | | 2,079,248,143 | | (1,914,280,793) | | 397,499,754 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 2,782,512 | | 478,429,241 | | (476,554,817) | | 4,656,936 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
Schedule of Futures
| | | | | | | | | | | | | | |
Description | | Number of Contracts | | Expiration Date | | Value and Notional Amount | | Unrealized Appreciation/ (Depreciation) | | Variation Margin Asset/(Liability) | | |
Futures Purchased: | | | | | | | | | | | | |
5 Year US Treasury Note | | 230 | | 10/5/21 | $ | 28,388,828 | $ | (68,242) | $ | 14,375 | |
Ultra 10-Year Treasury Note | | 10 | | 9/30/21 | | 1,472,031 | | 25,781 | | 4,844 | |
Total - Futures Purchased | | | | | | | | (42,461) | | 19,219 | | |
Futures Sold: | | | | | | | | | | | | |
2 Year US Treasury Note | | 7 | | 10/5/21 | | (1,542,242) | | 2,461 | | (164) | |
Total | | | | | | | $ | (40,000) | $ | 19,055 | | |
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of June 30, 2021.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of June 30, 2021 |
| | | | | |
| | | | | Interest Rate
Contracts |
Asset Derivatives: | | | |
Variation margin receivable on futures contracts | | | $ 19,219 |
| | | | |
Liability Derivatives: | | | |
Variation margin payable on futures contracts | | | $ 164 |
| | | | |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended June 30, 2021.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended June 30, 2021 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Interest Rate
Contracts |
Futures contracts | | $ (83,902) |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Interest Rate
Contracts |
Futures contracts | | $ (64,609) |
| | | | | |
Please see the "Net Realized Gain/(Loss) on investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Flexible Bond Fund
Schedule of Investments
June 30, 2021
| | |
Average Ending Monthly Market Value of Derivative Instruments During the Year Ended June 30, 2021 |
| |
| Market Value |
Futures contracts, purchased | $13,345,852 |
Futures contracts, sold | 1,613,702 |
| | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
20 | JUNE 30, 2021 |
Janus Henderson Flexible Bond Fund
Notes to Schedule of Investments and Other Information
| | |
Bloomberg Barclays U.S. Aggregate Bond Index | Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based measure of the investment grade, US dollar-denominated, fixed-rate taxable bond market. |
| | |
ICE | Intercontinental Exchange |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
SOFR | Secured Overnight Financing Rate |
TBA | (To Be Announced) Securities are purchased/sold on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement when specific mortgage pools are assigned. |
ULC | Unlimited Liability Company |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the year ended June 30, 2021 is $1,113,143,764, which represents 28.5% of net assets. |
| | |
ƒ | All or a portion of this position is not funded, or has been purchased on a delayed delivery or when-issued basis. If applicable, interest rates will be determined and interest will begin to accrue at a future date. See Notes to Financial Statements. |
| | |
‡ | Variable or floating rate security. Rate shown is the current rate as of June 30, 2021. Certain variable rate securities are not based on a published reference rate and spread; they are determined by the issuer or agent and current market conditions. Reference rate is as of reset date and may vary by security, which may not indicate a reference rate and/or spread in their description. |
| | |
ÇÇ | Security is a U.S. Treasury Inflation-Protected Security (TIPS). |
| | |
ºº | Rate shown is the 7-day yield as of June 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at June 30, 2021. |
| | |
µ | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. The date indicated, if any, represents the next call date. |
| | |
Ç | Step bond. The coupon rate will increase or decrease periodically based upon a predetermined schedule. The rate shown reflects the current rate. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Henderson Flexible Bond Fund
Notes to Schedule of Investments and Other Information
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Asset-Backed/Commercial Mortgage-Backed Securities | $ | - | $ | 674,774,610 | $ | - |
Bank Loans and Mezzanine Loans | | - | | 50,475,096 | | - |
Corporate Bonds | | - | | 1,628,671,868 | | - |
Inflation-Indexed Bonds | | - | | 158,013,182 | | - |
Mortgage-Backed Securities | | - | | 646,352,615 | | - |
United States Treasury Notes/Bonds | | - | | 688,914,538 | | - |
Preferred Stocks | | - | | 22,160,304 | | - |
Investment Companies | | - | | 397,499,754 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 5,831,895 | | - |
Total Investments in Securities | $ | - | $ | 4,272,693,862 | $ | - |
Other Financial Instruments(a): | | | | | | |
Variation Margin Receivable on Futures Contracts | | 19,219 | | - | | - |
Total Assets | $ | 19,219 | $ | 4,272,693,862 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Variation Margin Payable on Futures Contracts | $ | 164 | $ | - | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Futures, certain written options on futures, and centrally cleared swap contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Written options, written swaptions, and other swap contracts are reported at their market value at measurement date. |
Janus Henderson Flexible Bond Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,791,182,743)(1) | | $ | 3,870,537,172 | |
| Affiliated investments, at value (cost $402,156,690) | | | 402,156,690 | |
| Cash | | | 2,538,717 | |
| Deposits with brokers for futures | | | 220,000 | |
| Receivable for variation margin on futures contracts | | | 19,219 | |
| Non-interested Trustees' deferred compensation | | | 95,012 | |
| Receivables: | | | | |
| | Interest | | | 17,652,138 | |
| | Investments sold | | | 15,540,743 | |
| | Fund shares sold | | | 7,885,268 | |
| | Dividends from affiliates | | | 16,138 | |
| Other assets | | | 19,561 | |
Total Assets | | | 4,316,680,658 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 5,831,895 | |
| Payable for variation margin on futures contracts | | | 164 | |
| Payables: | | | — | |
| | TBA investments purchased | | | 304,723,912 | |
| | Investments purchased | | | 86,845,511 | |
| | Fund shares repurchased | | | 9,481,076 | |
| | Advisory fees | | | 1,304,416 | |
| | Dividends | | | 964,214 | |
| | Transfer agent fees and expenses | | | 459,377 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 106,557 | |
| | Non-interested Trustees' deferred compensation fees | | | 95,012 | |
| | Professional fees | | | 79,776 | |
| | Non-interested Trustees' fees and expenses | | | 15,232 | |
| | Affiliated fund administration fees payable | | | 7,999 | |
| | Custodian fees | | | 4,395 | |
| | Accrued expenses and other payables | | | 307,077 | |
Total Liabilities | | | 410,226,613 | |
Net Assets | | $ | 3,906,454,045 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Flexible Bond Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,880,652,106 | |
| Total distributable earnings (loss) | | | 25,801,939 | |
Total Net Assets | | $ | 3,906,454,045 | |
Net Assets - Class A Shares | | $ | 144,886,350 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,985,033 | |
Net Asset Value Per Share(2) | | $ | 11.16 | |
Maximum Offering Price Per Share(3) | | $ | 11.72 | |
Net Assets - Class C Shares | | $ | 74,867,452 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,708,256 | |
Net Asset Value Per Share(2) | | $ | 11.16 | |
Net Assets - Class D Shares | | $ | 639,286,281 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 57,277,315 | |
Net Asset Value Per Share | | $ | 11.16 | |
Net Assets - Class I Shares | | $ | 1,967,267,627 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 176,247,428 | |
Net Asset Value Per Share | | $ | 11.16 | |
Net Assets - Class N Shares | | $ | 487,997,082 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 43,758,517 | |
Net Asset Value Per Share | | $ | 11.15 | |
Net Assets - Class R Shares | | $ | 25,663,759 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,299,030 | |
Net Asset Value Per Share | | $ | 11.16 | |
Net Assets - Class S Shares | | $ | 19,114,091 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,712,610 | |
Net Asset Value Per Share | | $ | 11.16 | |
Net Assets - Class T Shares | | $ | 547,371,403 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 49,052,705 | |
Net Asset Value Per Share | | $ | 11.16 | |
| |
(1) Includes $5,713,450 of securities on loan. See Note 3 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/95.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
24 | JUNE 30, 2021 |
Janus Henderson Flexible Bond Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Interest | $ | 100,309,151 | |
| Dividends | | 851,651 | |
| Dividends from affiliates | | 212,169 | |
| Affiliated securities lending income, net | | 74,241 | |
| Unaffiliated securities lending income, net | | 2,006 | |
| Other income | | 653,018 | |
Total Investment Income | | 102,102,236 | |
Expenses: | | | |
| Advisory fees | | 15,975,756 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 363,911 | |
| | Class C Shares | | 911,907 | |
| | Class R Shares | | 121,891 | |
| | Class S Shares | | 48,757 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 760,786 | |
| | Class R Shares | | 65,113 | |
| | Class S Shares | | 48,781 | |
| | Class T Shares | | 1,474,611 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 249,751 | |
| | Class C Shares | | 67,284 | |
| | Class I Shares | | 1,315,500 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 8,585 | |
| | Class C Shares | | 4,480 | |
| | Class D Shares | | 88,753 | |
| | Class I Shares | | 71,705 | |
| | Class N Shares | | 12,449 | |
| | Class R Shares | | 537 | |
| | Class S Shares | | 246 | |
| | Class T Shares | | 3,457 | |
| Registration fees | | 238,220 | |
| Shareholder reports expense | | 145,984 | |
| Affiliated fund administration fees | | 109,333 | |
| Professional fees | | 78,821 | |
| Non-interested Trustees’ fees and expenses | | 65,606 | |
| Custodian fees | | 31,607 | |
| Other expenses | | 263,971 | |
Total Expenses | | 22,527,802 | |
Less: Excess Expense Reimbursement and Waivers | | (54,567) | |
Net Expenses | | 22,473,235 | |
Net Investment Income/(Loss) | | 79,629,001 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Flexible Bond Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 123,214,044 | |
| Investments in affiliates | | (13,580) | |
| Futures contracts | | (83,902) | |
Total Net Realized Gain/(Loss) on Investments | | 123,116,562 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments and non-interested Trustees’ deferred compensation | | (109,318,545) | |
| Futures contracts | | (64,609) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (109,383,154) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 93,362,409 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
26 | JUNE 30, 2021 |
Janus Henderson Flexible Bond Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 79,629,001 | | $ | 102,062,919 | |
| Net realized gain/(loss) on investments | | 123,116,562 | | | 220,869,152 | |
| Change in unrealized net appreciation/depreciation | | (109,383,154) | | | 55,686,498 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 93,362,409 | | | 378,618,569 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (2,891,772) | | | (2,852,027) | |
| | Class C Shares | | (1,384,652) | | | (2,301,543) | |
| | Class D Shares | | (15,144,596) | | | (16,009,221) | |
| | Class I Shares | | (43,819,343) | | | (51,654,992) | |
| | Class N Shares | | (12,345,859) | | | (19,442,495) | |
| | Class R Shares | | (441,119) | | | (560,400) | |
| | Class S Shares | | (372,704) | | | (565,859) | |
| | Class T Shares | | (12,882,162) | | | (16,275,146) | |
Net Decrease from Dividends and Distributions to Shareholders | | (89,282,207) | | | (109,661,683) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 26,555,490 | | | (4,457,083) | |
| | Class C Shares | | (48,627,607) | | | (21,304,990) | |
| | Class D Shares | | (2,965,870) | | | 53,867,939 | |
| | Class I Shares | | 219,307,410 | | | (382,143,977) | |
| | Class N Shares | | (52,703,881) | | | (187,507,231) | |
| | Class R Shares | | 1,207,300 | | | (5,115,315) | |
| | Class S Shares | | 472,925 | | | (10,849,188) | |
| | Class T Shares | | (51,054,217) | | | (84,597,160) | |
Net Increase/(Decrease) from Capital Share Transactions | | 92,191,550 | | | (642,107,005) | |
Net Increase/(Decrease) in Net Assets | | 96,271,752 | | | (373,150,119) | |
Net Assets: | | | | | | |
| Beginning of period | | 3,810,182,293 | | | 4,183,332,412 | |
| End of period | $ | 3,906,454,045 | | $ | 3,810,182,293 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 27 |
Janus Henderson Flexible Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | | | $10.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.20 | | | 0.25 | | | 0.28 | | | 0.24 | | | 0.23 | |
| | Net realized and unrealized gain/(loss) | | 0.04 | | | 0.76 | | | 0.37 | | | (0.34) | | | (0.20) | |
| Total from Investment Operations | | 0.24 | | | 1.01 | | | 0.65 | | | (0.10) | | | 0.03 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.22) | | | (0.26) | | | (0.29) | | | —(2) | | | (0.27) | |
| | Return of capital | | — | | | — | | | — | | | (0.26) | | | — | |
| Total Dividends and Distributions | | (0.22) | | | (0.26) | | | (0.29) | | | (0.26) | | | (0.27) | |
| Net Asset Value, End of Period | | $11.16 | | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | |
| Total Return* | | 2.19% | | | 9.90% | | | 6.61% | | | (0.95)% | | | 0.30% | |
| Net Assets, End of Period (in thousands) | | $144,886 | | | $118,862 | | | $115,349 | | | $164,453 | | | $369,125 | |
| Average Net Assets for the Period (in thousands) | | $145,458 | | | $114,334 | | | $137,456 | | | $227,344 | | | $572,984 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.86% | | | 0.92% | | | 1.01% | | | 0.95% | | | 0.84% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.86% | | | 0.88% | | | 0.91% | | | 0.89% | | | 0.84% | |
| | Ratio of Net Investment Income/(Loss) | | 1.74% | | | 2.30% | | | 2.78% | | | 2.32% | | | 2.15% | |
| Portfolio Turnover Rate | | 132%(3) | | | 175%(3) | | | 219%(3) | | | 181%(3) | | | 96% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | | | $10.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.13 | | | 0.18 | | | 0.22 | | | 0.18 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 0.05 | | | 0.77 | | | 0.37 | | | (0.34) | | | (0.20) | |
| Total from Investment Operations | | 0.18 | | | 0.95 | | | 0.59 | | | (0.16) | | | (0.04) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.20) | | | (0.23) | | | —(2) | | | (0.20) | |
| | Return of capital | | — | | | — | | | — | | | (0.20) | | | — | |
| Total Dividends and Distributions | | (0.16) | | | (0.20) | | | (0.23) | | | (0.20) | | | (0.20) | |
| Net Asset Value, End of Period | | $11.16 | | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | |
| Total Return* | | 1.60% | | | 9.23% | | | 5.97% | | | (1.54)% | | | (0.38)% | |
| Net Assets, End of Period (in thousands) | | $74,867 | | | $122,908 | | | $135,639 | | | $194,727 | | | $284,311 | |
| Average Net Assets for the Period (in thousands) | | $97,560 | | | $123,202 | | | $155,770 | | | $242,549 | | | $343,064 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.44% | | | 1.50% | | | 1.52% | | | 1.50% | | | 1.52% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.44% | | | 1.50% | | | 1.52% | | | 1.50% | | | 1.52% | |
| | Ratio of Net Investment Income/(Loss) | | 1.17% | | | 1.67% | | | 2.17% | | | 1.74% | | | 1.51% | |
| Portfolio Turnover Rate | | 132%(3) | | | 175%(3) | | | 219%(3) | | | 181%(3) | | | 96% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. (3) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
28 | JUNE 30, 2021 |
Janus Henderson Flexible Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | | | $10.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.23 | | | 0.28 | | | 0.31 | | | 0.27 | | | 0.26 | |
| | Net realized and unrealized gain/(loss) | | 0.05 | | | 0.77 | | | 0.37 | | | (0.33) | | | (0.20) | |
| Total from Investment Operations | | 0.28 | | | 1.05 | | | 0.68 | | | (0.06) | | | 0.06 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.26) | | | (0.30) | | | (0.32) | | | —(2) | | | (0.30) | |
| | Return of capital | | — | | | — | | | — | | | (0.30) | | | — | |
| Total Dividends and Distributions | | (0.26) | | | (0.30) | | | (0.32) | | | (0.30) | | | (0.30) | |
| Net Asset Value, End of Period | | $11.16 | | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | |
| Total Return* | | 2.49% | | | 10.22% | | | 6.93% | | | (0.64)% | | | 0.54% | |
| Net Assets, End of Period (in thousands) | | $639,286 | | | $641,920 | | | $547,759 | | | $562,065 | | | $622,426 | |
| Average Net Assets for the Period (in thousands) | | $664,448 | | | $576,119 | | | $538,993 | | | $599,185 | | | $649,107 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.57% | | | 0.59% | | | 0.61% | | | 0.59% | | | 0.60% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.57% | | | 0.59% | | | 0.61% | | | 0.59% | | | 0.60% | |
| | Ratio of Net Investment Income/(Loss) | | 2.03% | | | 2.58% | | | 3.09% | | | 2.66% | | | 2.44% | |
| Portfolio Turnover Rate | | 132%(3) | | | 175%(3) | | | 219%(3) | | | 181%(3) | | | 96% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | | | $10.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.24 | | | 0.28 | | | 0.32 | | | 0.28 | | | 0.26 | |
| | Net realized and unrealized gain/(loss) | | 0.04 | | | 0.77 | | | 0.37 | | | (0.33) | | | (0.20) | |
| Total from Investment Operations | | 0.28 | | | 1.05 | | | 0.69 | | | (0.05) | | | 0.06 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.26) | | | (0.30) | | | (0.33) | | | 0.01 | | | (0.30) | |
| | Return of capital | | — | | | — | | | — | | | (0.32) | | | — | |
| Total Dividends and Distributions | | (0.26) | | | (0.30) | | | (0.33) | | | (0.31) | | | (0.30) | |
| Net Asset Value, End of Period | | $11.16 | | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | |
| Total Return* | | 2.56% | | | 10.31% | | | 7.02% | | | (0.55)% | | | 0.59% | |
| Net Assets, End of Period (in thousands) | | $1,967,268 | | | $1,746,376 | | | $2,007,132 | | | $4,027,112 | | | $5,490,323 | |
| Average Net Assets for the Period (in thousands) | | $1,866,732 | | | $1,806,163 | | | $3,245,500 | | | $4,996,045 | | | $5,521,703 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.50% | | | 0.51% | | | 0.52% | | | 0.50% | | | 0.55% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.50% | | | 0.51% | | | 0.52% | | | 0.50% | | | 0.55% | |
| | Ratio of Net Investment Income/(Loss) | | 2.10% | | | 2.67% | | | 3.17% | | | 2.73% | | | 2.50% | |
| Portfolio Turnover Rate | | 132%(3) | | | 175%(3) | | | 219%(3) | | | 181%(3) | | | 96% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. (3) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 29 |
Janus Henderson Flexible Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.14 | | | $10.38 | | | $10.02 | | | $10.39 | | | $10.62 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.24 | | | 0.29 | | | 0.33 | | | 0.29 | | | 0.27 | |
| | Net realized and unrealized gain/(loss) | | 0.04 | | | 0.78 | | | 0.37 | | | (0.35) | | | (0.19) | |
| Total from Investment Operations | | 0.28 | | | 1.07 | | | 0.70 | | | (0.06) | | | 0.08 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.27) | | | (0.31) | | | (0.34) | | | 0.01 | | | (0.31) | |
| | Return of capital | | — | | | — | | | — | | | (0.32) | | | — | |
| Total Dividends and Distributions | | (0.27) | | | (0.31) | | | (0.34) | | | (0.31) | | | (0.31) | |
| Net Asset Value, End of Period | | $11.15 | | | $11.14 | | | $10.38 | | | $10.02 | | | $10.39 | |
| Total Return* | | 2.54% | | | 10.49% | | | 7.10% | | | (0.59)% | | | 0.79% | |
| Net Assets, End of Period (in thousands) | | $487,997 | | | $539,154 | | | $680,664 | | | $1,354,610 | | | $571,544 | |
| Average Net Assets for the Period (in thousands) | | $509,158 | | | $662,412 | | | $1,190,558 | | | $990,124 | | | $581,190 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.43% | | | 0.44% | | | 0.45% | | | 0.44% | | | 0.44% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.43% | | | 0.44% | | | 0.45% | | | 0.44% | | | 0.44% | |
| | Ratio of Net Investment Income/(Loss) | | 2.18% | | | 2.74% | | | 3.25% | | | 2.90% | | | 2.60% | |
| Portfolio Turnover Rate | | 132%(2) | | | 175%(2) | | | 219%(2) | | | 181%(2) | | | 96% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.15 | | | $10.39 | | | $10.03 | | | $10.39 | | | $10.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.16 | | | 0.21 | | | 0.25 | | | 0.21 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | 0.04 | | | 0.78 | | | 0.37 | | | (0.34) | | | (0.20) | |
| Total from Investment Operations | | 0.20 | | | 0.99 | | | 0.62 | | | (0.13) | | | (0.01) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.19) | | | (0.23) | | | (0.26) | | | —(3) | | | (0.23) | |
| | Return of capital | | — | | | — | | | — | | | (0.23) | | | — | |
| Total Dividends and Distributions | | (0.19) | | | (0.23) | | | (0.26) | | | (0.23) | | | (0.23) | |
| Net Asset Value, End of Period | | $11.16 | | | $11.15 | | | $10.39 | | | $10.03 | | | $10.39 | |
| Total Return* | | 1.80% | | | 9.65% | | | 6.30% | | | (1.23)% | | | (0.06)% | |
| Net Assets, End of Period (in thousands) | | $25,664 | | | $24,453 | | | $27,580 | | | $36,235 | | | $41,175 | |
| Average Net Assets for the Period (in thousands) | | $26,042 | | | $25,769 | | | $31,616 | | | $38,913 | | | $44,888 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.16% | | | 1.20% | | | 1.21% | | | 1.19% | | | 1.20% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.16% | | | 1.20% | | | 1.21% | | | 1.19% | | | 1.20% | |
| | Ratio of Net Investment Income/(Loss) | | 1.45% | | | 1.98% | | | 2.49% | | | 2.07% | | | 1.84% | |
| Portfolio Turnover Rate | | 132%(2) | | | 175%(2) | | | 219%(2) | | | 181%(2) | | | 96% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
30 | JUNE 30, 2021 |
Janus Henderson Flexible Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | | | $10.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.19 | | | 0.24 | | | 0.27 | | | 0.24 | | | 0.22 | |
| | Net realized and unrealized gain/(loss) | | 0.04 | | | 0.77 | | | 0.37 | | | (0.34) | | | (0.20) | |
| Total from Investment Operations | | 0.23 | | | 1.01 | | | 0.64 | | | (0.10) | | | 0.02 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.21) | | | (0.26) | | | (0.28) | | | —(2) | | | (0.26) | |
| | Return of capital | | — | | | — | | | — | | | (0.26) | | | — | |
| Total Dividends and Distributions | | (0.21) | | | (0.26) | | | (0.28) | | | (0.26) | | | (0.26) | |
| Net Asset Value, End of Period | | $11.16 | | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | |
| Total Return* | | 2.11% | | | 9.83% | | | 6.56% | | | (0.98)% | | | 0.20% | |
| Net Assets, End of Period (in thousands) | | $19,114 | | | $18,630 | | | $28,020 | | | $36,398 | | | $48,347 | |
| Average Net Assets for the Period (in thousands) | | $19,517 | | | $23,253 | | | $30,601 | | | $41,035 | | | $60,867 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.94% | | | 0.95% | | | 0.96% | | | 0.93% | | | 0.94% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.94% | | | 0.95% | | | 0.96% | | | 0.93% | | | 0.94% | |
| | Ratio of Net Investment Income/(Loss) | | 1.66% | | | 2.24% | | | 2.73% | | | 2.31% | | | 2.08% | |
| Portfolio Turnover Rate | | 132%(3) | | | 175%(3) | | | 219%(3) | | | 181%(3) | | | 96% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | | | $10.62 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.22 | | | 0.27 | | | 0.30 | | | 0.26 | | | 0.25 | |
| | Net realized and unrealized gain/(loss) | | 0.04 | | | 0.77 | | | 0.37 | | | (0.33) | | | (0.19) | |
| Total from Investment Operations | | 0.26 | | | 1.04 | | | 0.67 | | | (0.07) | | | 0.06 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.24) | | | (0.29) | | | (0.31) | | | —(2) | | | (0.29) | |
| | Return of capital | | — | | | — | | | — | | | (0.29) | | | — | |
| Total Dividends and Distributions | | (0.24) | | | (0.29) | | | (0.31) | | | (0.29) | | | (0.29) | |
| Net Asset Value, End of Period | | $11.16 | | | $11.14 | | | $10.39 | | | $10.03 | | | $10.39 | |
| Total Return* | | 2.39% | | | 10.12% | | | 6.84% | | | (0.72)% | | | 0.55% | |
| Net Assets, End of Period (in thousands) | | $547,371 | | | $597,879 | | | $641,190 | | | $898,156 | | | $1,293,591 | |
| Average Net Assets for the Period (in thousands) | | $590,025 | | | $605,817 | | | $736,901 | | | $1,120,052 | | | $1,476,151 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.68% | | | 0.69% | | | 0.70% | | | 0.68% | | | 0.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.68% | | | 0.69% | | | 0.67% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | 1.94% | | | 2.49% | | | 3.00% | | | 2.56% | | | 2.35% | |
| Portfolio Turnover Rate | | 132%(3) | | | 175%(3) | | | 219%(3) | | | 181%(3) | | | 96% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. (3) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 31 |
Janus Henderson Flexible Bond Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Flexible Bond Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks to obtain maximum total return, consistent with preservation of capital. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson
Janus Henderson Flexible Bond Fund
Notes to Financial Statements
Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with US GAAP.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on
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an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
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Dividends and Distributions
Dividends are declared daily and distributed monthly for the Fund. Realized capital gains, if any, are declared and distributed in December. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the year ended June 30, 2021 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the 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.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
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· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital's ability to establish and maintain appropriate systems and trading.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts on commodities are valued at the settlement price on valuation date on the commodities exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on
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the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract.
Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
During the year, the Fund purchased interest rate futures to increase exposure to interest rate risk.
During the year, the Fund sold interest rate futures to decrease exposure to interest rate risk.
3. Other Investments and Strategies
Additional Investment Risk
The Fund may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes, or adverse developments specific to the issuer.
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European
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economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
LIBOR Replacement Risk
The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate (LIBOR) as a reference rate for various rate calculations. On July 27, 2017, the U.K. Financial Conduct Authority announced that it intends to stop compelling or inducing banks to submit LIBOR rates after 2021. However, it remains unclear if LIBOR will continue to exist in its current, or a modified, form. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Financing Rate (SOFR), that is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. However, global consensus on alternative rates is lacking. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could adversely impact (i) volatility and liquidity in markets that are tied to LIBOR, (ii) the market for, or value of, specific securities or payments linked to those reference rates, (iii) availability or terms of borrowing or refinancing, or (iv) the effectiveness of hedging strategies. For these and other reasons, the elimination of LIBOR or changes to other interest rates may adversely affect the Fund’s performance and/or net asset value. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021. Markets are slowly developing in response to these new rates. Uncertainty regarding the process for amending existing contracts or instruments to transition away from LIBOR remains a concern for the Fund. The effect of any changes to, or discontinuation of, LIBOR on the Fund will vary depending, among other things, on (1) existing fallback or termination provisions in individual contracts and (2) whether, how, and when industry participants develop and adopt new reference rates and fallbacks for both legacy and new products and instruments. Accordingly, it is difficult to predict the full impact of the transition away from LIBOR on the Fund until new reference rates and fallbacks for both legacy and new products, instruments and contracts are commercially accepted.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Inflation-Linked Securities
The Fund may invest in inflation-indexed bonds, including municipal inflation-indexed bonds and corporate inflation-indexed bonds, or in derivatives that are linked to these securities. Inflation-linked bonds are fixed-income securities that have a principal value that is periodically adjusted according to the rate of inflation. If an index measuring inflation falls, the principal value of inflation-indexed bonds will typically be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Because of their inflation adjustment feature, inflation-linked bonds typically have lower yields than conventional fixed-rate bonds. In addition, inflation-linked bonds also normally decline in price when real interest rates rise. In the event of deflation, when
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prices decline over time, the principal and income of inflation-linked bonds would likely decline, resulting in losses to the Fund.
In the case of Treasury Inflation-Protected Securities, also known as TIPS, repayment of original bond principal upon maturity (as adjusted for inflation) is guaranteed by the U.S. Treasury. For inflation-linked bonds that do not provide a similar guarantee, the adjusted principal value of the inflation-linked bond repaid at maturity may be less than the original principal. Other non-U.S. sovereign governments also issue inflation-linked securities (sometimes referred to as “linkers”) that are tied to their own local consumer price indices. In certain of these non-U.S. jurisdictions, the repayment of the original bond principal upon the maturity of an inflation-linked bond is not guaranteed, allowing for the amount of the bond repaid at maturity to be less than par. Inflation-linked bonds may also be issued by, or related to, sovereign governments of other developed countries, emerging market countries, or companies or other entities not affiliated with governments.
Loans
The Fund may invest in various commercial loans, including bank loans, bridge loans, debtor-in-possession (“DIP”) loans, mezzanine loans, and other fixed and floating rate loans. These loans may be acquired through loan participations and assignments or on a when-issued basis. Commercial loans will comprise no more than 20% of the Fund’s total assets. Below are descriptions of the types of loans held by the Fund as of June 30, 2021.
· Bank Loans - Bank loans are obligations of companies or other entities entered into in connection with recapitalizations, acquisitions, and refinancings. The Fund’s 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.
· Floating Rate Loans – Floating rate loans are debt securities that have floating interest rates, that adjust periodically, and are tied to a benchmark lending rate, such as London Interbank Offered Rate (“LIBOR”). In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (‘‘borrowers’’) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. While the Fund generally expects to invest in fully funded term loans, certain of the loans in which the Fund may invest include revolving loans, bridge loans, and delayed draw term loans.
Purchasers of floating rate loans may pay and/or receive certain fees. The Fund may receive fees such as covenant waiver fees or prepayment penalty fees. The Fund may pay fees such as facility fees. Such fees may affect the Fund’s return.
· Mezzanine Loans - Mezzanine loans are secured by the stock of the company that owns the assets. Mezzanine loans are a hybrid of debt and equity financing that is typically used to fund the expansion of existing companies. A mezzanine loan is composed of debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. Mezzanine loans typically are the most subordinated debt obligation in an issuer’s capital structure.
Mortgage- and Asset-Backed Securities
Mortgage- and asset-backed securities represent interests in “pools” of commercial or residential mortgages or other assets, including consumer and commercial loans or receivables. The Fund may purchase fixed or variable rate commercial or residential mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. Ginnie Mae’s guarantees are backed as to the timely payment of principal and interest by the full faith and credit of the U.S. Government. Fannie Mae and
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Freddie Mac securities are not backed by the full faith and credit of the U.S. Government. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. Since that time, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases and Treasury and Federal Reserve purchases of their mortgage-backed securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac.
The Fund may also purchase other mortgage- and asset-backed securities through single- and multi-seller conduits, collateralized debt obligations, structured investment vehicles, and other similar securities. Asset-backed securities may be backed by various consumer obligations, including automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying loans are not paid, the securities’ issuer could be forced to sell the assets and recognize losses on such assets, which could impact your return. Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Mortgage- and asset-backed securities are subject to both extension risk, where borrowers pay off their debt obligations more slowly in times of rising interest rates, and prepayment risk, where borrowers pay off their debt obligations sooner than expected in times of declining interest rates. These risks may reduce the Fund’s returns. In addition, investments in mortgage- and asset-backed securities, including those comprised of subprime mortgages, may be subject to a higher degree of credit risk, valuation risk, extension risk (if interest rates rise), and liquidity risk than various other types of fixed-income securities. Additionally, although mortgage-backed securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that guarantors or insurers will meet their obligations.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 5,713,450 | $ | — | $ | (5,713,450) | $ | — |
| | | | | | | | | |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
Real Estate Investing
The Fund may invest 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, corporate
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Notes to Financial Statements
bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to primarily invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of June 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $5,713,450. Gross amounts of recognized liabilities for securities lending (collateral received) as of June 30, 2021 is $5,831,895, resulting in the net amount due to the counterparty of $118,445.
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt of less developed countries, 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 debtor’s willingness or ability to satisfy its debt obligation may be
Janus Henderson Flexible Bond Fund
Notes to Financial Statements
affected by various factors including, but not limited to, 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 debtor’s 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 debtor’s ability or willingness to timely service its debts. The 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 Fund’s 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 Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
TBA Commitments
The Fund may enter into “to be announced” or “TBA” commitments. TBAs are forward agreements for the purchase or sale of securities, including mortgage-backed securities, for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate, and mortgage terms. Although the particular TBA securities must meet industry-accepted “good delivery” standards, there can be no assurance that a security purchased on forward commitment basis will ultimately be issued or delivered by the counterparty. During the settlement period, the Fund will still bear the risk of any decline in the value of the security to be delivered. Because TBA commitments do not require the purchase and sale of identical securities, the characteristics of the security delivered to the Fund may be less favorable than the security delivered to the dealer. If the counterparty to a transaction fails to deliver the security, the Fund could suffer a loss.
To facilitate TBA commitments, the Fund is required to segregate or otherwise earmark liquid assets marked to market daily in an amount at least equal to such TBA commitments. Rules of the Financial Industry Regulatory Authority (“FINRA”) which are expected to be effective in October 2021, include mandatory margin requirements for TBA commitments which, in some circumstances, will require the Fund to also post collateral. These collateral requirements may increase costs associated with the Fund’s participation in the TBA market.
When-Issued, Delayed Delivery and Forward Commitment Transactions
The Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis. When purchasing a security on a when-issued, delayed delivery, or forward commitment basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made. Because the Fund is not required to pay for the security until the delivery date, these risks are in addition to the risks associated with the Fund’s other investments. If the other party to a transaction fails to deliver the securities, the Fund could miss a favorable price or yield opportunity. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases are outstanding, the purchases may result in a form of leverage. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases (including TBA commitments) are outstanding, the purchases may result in a form of leverage.
When the Fund has sold a security on a when-issued, delayed delivery, or forward commitment basis, the Fund does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to pay for the securities, the Fund could suffer a loss. Additionally, when selling a security on a when-issued, delayed delivery, or forward commitment basis without owning the security, the Fund will incur a loss if the security’s price appreciates in value such that the security’s price is above the agreed upon price on the settlement date. The Fund may dispose of or renegotiate a transaction after it is entered into, and may purchase or sell when-issued, delayed delivery or forward commitment securities before the settlement date, which may result in a gain or loss.
Janus Henderson Flexible Bond Fund
Notes to Financial Statements
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $300 Million | 0.50 |
Over $300 Million | 0.40 |
The Fund’s actual investment advisory fee rate for the reporting period was 0.41% of average annual net assets before any applicable waivers.
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.45% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. Janus Services expects to use all or a
Janus Henderson Flexible Bond Fund
Notes to Financial Statements
significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class R Shares, Class S Shares, and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class R Shares, Class S Shares, and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, of up to 0.50% of the Class R Shares' average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30,
Janus Henderson Flexible Bond Fund
Notes to Financial Statements
2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 4.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $13,517.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class A Shares paid CDSCs of $5,148 to Janus Henderson Distributors.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $10,522.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by Janus Capital in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the year ended June 30, 2021, the Fund engaged in cross trades amounting to $50,679,458 in purchases and $67,557,011 in sales, resulting in a net realized gain of $4,069,575. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
Janus Henderson Flexible Bond Fund
Notes to Financial Statements
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, and derivatives. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 7,714,587 | $ - | $ (50,370,300) | $ - | $ - | $ (70,014) | $ 68,527,666 | |
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended June 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(50,370,300) | $ - | $ (50,370,300) | | |
During the year ended June 30, 2021, capital loss carryovers of $114,710,800 were utilized by the Fund.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 4,204,166,196 | $87,824,379 | $(19,296,713) | $ 68,527,666 |
Information on the tax components of derivatives as of June 30, 2021 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (40,000) | $ - | | $ - |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
Janus Henderson Flexible Bond Fund
Notes to Financial Statements
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 89,282,207 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 109,661,683 | $ - | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ - | $ 11,275,575 | $ (11,275,575) |
Janus Henderson Flexible Bond Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 7,245,999 | $ 81,594,621 | | 4,930,912 | $ 52,440,288 |
Reinvested dividends and distributions | 174,858 | 1,959,355 | | 175,621 | 1,878,459 |
Shares repurchased | (5,105,423) | (56,998,486) | | (5,541,939) | (58,775,830) |
Net Increase/(Decrease) | 2,315,434 | $ 26,555,490 | | (435,406) | $ (4,457,083) |
Class C Shares: | | | | | |
Shares sold | 1,591,863 | $ 17,910,763 | | 2,516,346 | $ 26,797,489 |
Reinvested dividends and distributions | 113,207 | 1,271,198 | | 174,035 | 1,860,314 |
Shares repurchased | (6,026,120) | (67,809,568) | | (4,715,901) | (49,962,793) |
Net Increase/(Decrease) | (4,321,050) | $ (48,627,607) | | (2,025,520) | $ (21,304,990) |
Class D Shares: | | | | | |
Shares sold | 10,166,706 | $114,505,425 | | 13,810,260 | $ 148,161,617 |
Reinvested dividends and distributions | 1,272,686 | 14,271,894 | | 1,404,034 | 15,021,708 |
Shares repurchased | (11,767,857) | (131,743,189) | | (10,336,184) | (109,315,386) |
Net Increase/(Decrease) | (328,465) | $ (2,965,870) | | 4,878,110 | $ 53,867,939 |
Class I Shares: | | | | | |
Shares sold | 61,125,487 | $685,002,909 | | 45,559,398 | $ 485,990,200 |
Reinvested dividends and distributions | 3,163,274 | 35,473,526 | | 3,941,251 | 42,123,281 |
Shares repurchased | (44,745,736) | (501,169,025) | | (85,923,640) | (910,257,458) |
Net Increase/(Decrease) | 19,543,025 | $219,307,410 | | (36,422,991) | $(382,143,977) |
Class N Shares: | | | | | |
Shares sold | 12,442,006 | $139,422,743 | | 23,289,845 | $ 247,212,778 |
Reinvested dividends and distributions | 967,344 | 10,844,777 | | 1,664,677 | 17,770,394 |
Shares repurchased | (18,065,467) | (202,971,401) | | (42,083,607) | (452,490,403) |
Net Increase/(Decrease) | (4,656,117) | $ (52,703,881) | | (17,129,085) | $(187,507,231) |
Class R Shares: | | | | | |
Shares sold | 988,815 | $ 11,119,485 | | 972,318 | $ 10,214,759 |
Reinvested dividends and distributions | 37,952 | 425,635 | | 45,178 | 483,196 |
Shares repurchased | (921,749) | (10,337,820) | | (1,477,733) | (15,813,270) |
Net Increase/(Decrease) | 105,018 | $ 1,207,300 | | (460,237) | $ (5,115,315) |
Class S Shares: | | | | | |
Shares sold | 710,490 | $ 7,978,013 | | 528,478 | $ 5,638,782 |
Reinvested dividends and distributions | 33,194 | 372,327 | | 52,875 | 563,997 |
Shares repurchased | (702,762) | (7,877,415) | | (1,606,538) | (17,051,967) |
Net Increase/(Decrease) | 40,922 | $ 472,925 | | (1,025,185) | $ (10,849,188) |
Class T Shares: | | | | | |
Shares sold | 9,899,741 | $111,210,840 | | 12,756,421 | $ 136,381,795 |
Reinvested dividends and distributions | 1,135,398 | 12,732,646 | | 1,506,574 | 16,101,934 |
Shares repurchased | (15,645,136) | (174,997,703) | | (22,327,870) | (237,080,889) |
Net Increase/(Decrease) | (4,609,997) | $ (51,054,217) | | (8,064,875) | $ (84,597,160) |
7. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$2,303,082,259 | $2,968,615,573 | $ 2,536,814,357 | $ 1,972,794,210 |
Janus Henderson Flexible Bond Fund
Notes to Financial Statements
8. Recent Accounting Pronouncements
The FASB issued Accounting Standards Update 2020-04 Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) in March 2020. The new guidance in the ASU provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR or other interbank-offered based reference rates as of the end of 2021. For new and existing contracts, Funds may elect to apply the guidance as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of the ASU’s adoption to the Fund’s financial statements.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Flexible Bond Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Flexible Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Flexible Bond Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Flexible Bond Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Flexible Bond Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Flexible Bond Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Flexible Bond Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Flexible Bond Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Section 163(j) Interest Dividend | 95% |
Dividends Received Deduction Percentage | 1% |
Qualified Dividend Income Percentage | 1% |
Janus Henderson Flexible Bond Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Flexible Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Flexible Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Flexible Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Flexible Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Flexible Bond Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Flexible Bond Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Michael Keough
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Flexible Bond Fund | 12/15-Present | Portfolio Manager for other Janus Henderson accounts. |
Greg Wilensky
151 Detroit Street
Denver, CO 80206
DOB: 1967 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Flexible Bond Fund | 2/20-Present | Head of U.S. Fixed Income and Portfolio Manager for other Janus Henderson accounts. Formerly, Director and Lead Portfolio Manager of the U.S. Multi-Sector Fixed Income team at AllianceBernstein (2007-2019). |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
Janus Henderson Flexible Bond Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Flexible Bond Fund
Notes
NotesPage1
Janus Henderson Flexible Bond Fund
Notes
NotesPage2
Janus Henderson Flexible Bond Fund
Notes
NotesPage3
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93019 08-21 |
| | | |
| | | |
| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson Global Allocation Fund – Conservative |
| | |
| | Janus Investment Fund |
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| | | |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Allocation Fund - Conservative
Janus Henderson Global Allocation Fund - Conservative (unaudited)
| | | | | | |
FUND SNAPSHOT This Fund of Funds offers broad global diversification for investors by utilizing the full spectrum of Janus Henderson’s investment expertise and solutions, with the goal of providing higher risk-adjusted returns than the broad markets. | | | | | 
Ashwin Alankar portfolio manager |
| | | |
PERFORMANCE OVERVIEW
Janus Henderson Global Allocation Fund – Conservative’s Class I Shares returned 19.56% for the 12-month period ended June 30, 2021. This compares with a return of 2.63% for the Bloomberg Barclays Global Aggregate Bond Index, the Fund’s primary benchmark, and a return of 16.26% for its secondary benchmark, the Global Conservative Allocation Index, an internally calculated, hypothetical combination of total returns from the Bloomberg Barclays Global Aggregate Bond Index (60%) and the MSCI All Country World IndexSM (40%).
MARKET ENVIRONMENT
Global financial markets rallied during the period, first on the back of extraordinary policy initiatives aimed at dampening the worst effects from the COVID-19 pandemic on the world’s economy, and then on growing optimism that vaccines would gain approval and become widely available. While riskier assets maintained an upward trajectory throughout, safer government bonds gave back some of their gains during the winter as investors began to price in more durable economic growth and with it a rising chance of inflation. As consensus coalesced around the spring spike in inflation being transitory, bonds reversed course, sending rates once again lower. The rally in riskier assets, meanwhile, continued, with global equities finishing the period near record highs.
PERFORMANCE DISCUSSION
Janus Henderson Global Allocation Fund – Conservative invests across a broad set of Janus Henderson funds that span a wide range of global asset categories with a base allocation of 30% to 50% equities, 50% to 65% fixed income and 0% to 20% alternative investments (to the extent these investments are available) that are monitored and rebalanced continually. Janus Henderson Global Allocation Fund – Conservative is structured as a “fund of funds” portfolio that provides investors with broad, diversified exposure to various types of investments with an emphasis on managing investment risk.
Contributing most to returns were the Janus Henderson Multi-Sector Income Fund and the Janus Henderson Contrarian Fund. The former performed well given the combination of low interest rates during the period coupled with the considerable narrowing of spreads between yields on corporate bonds and those on their risk-free benchmarks. A key driver in Janus Henderson Contrarian was its underweight to sectors that vastly underperformed the market during the period. Detracting from performance were the Janus Henderson Small-Mid Cap Value Fund and the Janus Henderson Global Equity Income Fund as these equity segments were unable to keep up with the large-cap growth companies that drove markets higher during the period.
OUTLOOK
At a high level, the latter months of the period were smooth sailing for capital markets. The resilience of equities continued and U.S. Treasuries took a pause from their recent sell-off. The yield on 10-year notes fell by roughly 30 basis points over the final quarter.
Yet under this “calmness,” there were many gyrations. These were a reflection of the battle between the market and the Federal Reserve (Fed) – and even within the Fed – on the future course of inflation and growth and whether the time is coming for liquidity conditions to normalize and the central bank to step back from high levels of accommodation. This led to violent fluctuations in the performance of growth versus value stocks. At times, we saw value considerably outperform growth and growth outperform value at others.
Sharp moves also unfolded in the Treasury markets as inflation fears sent yields higher, only to reverse on Fed rhetoric echoing their confidence that inflation will be transitory and economic damage from the pandemic is still far-reaching, thus, requiring stimulus for many more years. While the tug-of-war continues, capital markets sided with
Janus Henderson Global Allocation Fund - Conservative (unaudited)
the Fed by the end of the quarter; the Fed’s reassurance that stimulus is not going away anytime soon sent equities to higher highs and quelled the sell-off in yields.
Thank you for investing in Janus Henderson Global Allocation Fund – Conservative.
Janus Henderson Global Allocation Fund - Conservative (unaudited)
Fund At A Glance
June 30, 2021
| | | | |
Holdings - (% of Net Assets) | | | |
Janus Henderson Global Bond Fund - Class N Shares | | 32.5 | % |
Janus Henderson Multi-Sector Income Fund - Class N Shares | | 14.1 | |
Janus Henderson Flexible Bond Fund - Class N Shares | | 6.3 | |
Janus Henderson Adaptive Global Allocation Fund - Class N Shares | | 5.3 | |
Janus Henderson Emerging Markets Fund - Class N Shares | | 5.1 | |
Janus Henderson Enterprise Fund - Class N Shares | | 4.1 | |
Janus Henderson Triton Fund - Class N Shares | | 4.1 | |
Janus Henderson Contrarian Fund - Class N Shares | | 3.7 | |
Janus Henderson Forty Fund - Class N Shares | | 3.7 | |
Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 3.1 | |
Janus Henderson Overseas Fund - Class N Shares | | 3.0 | |
Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | 2.9 | |
Janus Henderson Global Real Estate Fund - Class N Shares | | 2.1 | |
Janus Henderson Global Select Fund - Class N Shares | | 2.0 | |
Janus Henderson International Managed Volatility Fund - Class N Shares | | 2.0 | |
Janus Henderson Global Research Fund - Class N Shares | | 1.9 | |
Janus Henderson Global Equity Income Fund - Class N Shares | | 1.7 | |
Janus Henderson Asia Equity Fund - Class N Shares | | 1.6 | |
Janus Henderson European Focus Fund - Class N Shares | | 0.8 | |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Fixed Income Funds | | 52.9% | |
Equity Funds | | 47.1% | |
Other | | (0.0)% |
| | | 100.0% |
Janus Henderson Global Allocation Fund - Conservative (unaudited)
Performance
| |
See important disclosures on the next page. |
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| | | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 19.27% | 7.01% | 5.79% | 6.16% | | | 1.12% | 1.12% |
Class A Shares at MOP | | 12.41% | 5.75% | 5.16% | 5.76% | | | | |
Class C Shares at NAV | | 18.46% | 6.31% | 5.12% | 5.45% | | | 1.85% | 1.85% |
Class C Shares at CDSC | | 17.46% | 6.31% | 5.12% | 5.45% | | | | |
Class D Shares | | 19.53% | 7.23% | 6.00% | 6.38% | | | 0.93% | 0.92% |
Class I Shares | | 19.56% | 7.29% | 6.06% | 6.43% | | | 0.86% | 0.86% |
Class S Shares | | 18.96% | 6.82% | 5.61% | 5.95% | | | 1.28% | 1.28% |
Class T Shares | | 19.29% | 7.13% | 5.92% | 6.32% | | | 1.03% | 1.03% |
Bloomberg Barclays Global Aggregate Bond Index | | 2.63% | 2.34% | 2.05% | 3.74% | | | | |
Global Conservative Allocation Index | | 16.26% | 7.34% | 5.35% | 5.61% | | | | |
Morningstar Quartile - Class T Shares | | 4th | 3rd | 3rd | 2nd | | | | |
Morningstar Ranking - based on total returns for World Allocation Funds | | 411/468 | 286/419 | 226/326 | 88/217 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs),
Janus Henderson Global Allocation Fund - Conservative (unaudited)
Performance
non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Performance of the Global Allocation Funds depends on that of the underlying funds. They are subject to the volatility of the financial markets. Because Janus Capital Management is the adviser to the Fund and to the underlying affiliated funds held within the Fund, it is subject to certain potential conflicts of interest.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective share class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – December 30, 2005
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Allocation Fund - Conservative (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21)†† |
Class A Shares | $1,000.00 | $1,040.90 | $2.33 | | $1,000.00 | $1,022.51 | $2.31 | 0.46% |
Class C Shares | $1,000.00 | $1,037.10 | $5.71 | | $1,000.00 | $1,019.19 | $5.66 | 1.13% |
Class D Shares | $1,000.00 | $1,042.20 | $1.32 | | $1,000.00 | $1,023.51 | $1.30 | 0.26% |
Class I Shares | $1,000.00 | $1,042.20 | $1.11 | | $1,000.00 | $1,023.70 | $1.10 | 0.22% |
Class S Shares | $1,000.00 | $1,039.30 | $3.19 | | $1,000.00 | $1,021.67 | $3.16 | 0.63% |
Class T Shares | $1,000.00 | $1,040.70 | $1.77 | | $1,000.00 | $1,023.06 | $1.76 | 0.35% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
†† | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
Janus Henderson Global Allocation Fund - Conservative
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Investment Companies£– 100.0% | | | |
Equity Funds – 47.1% | | | |
| | Janus Henderson Adaptive Global Allocation Fund - Class N Shares | | 935,749 | | | $11,182,312 | |
| | Janus Henderson Asia Equity Fund - Class N Shares | | 231,462 | | | 3,328,421 | |
| | Janus Henderson Contrarian Fund - Class N Shares | | 248,129 | | | 7,865,683 | |
| | Janus Henderson Emerging Markets Fund - Class N Shares | | 823,173 | | | 10,825,062 | |
| | Janus Henderson Enterprise Fund - Class N Shares | | 49,934 | | | 8,707,405 | |
| | Janus Henderson European Focus Fund - Class N Shares | | 36,805 | | | 1,615,011 | |
| | Janus Henderson Forty Fund - Class N Shares | | 134,115 | | | 7,841,675 | |
| | Janus Henderson Global Equity Income Fund - Class N Shares | | 530,598 | | | 3,629,277 | |
| | Janus Henderson Global Real Estate Fund - Class N Shares | | 305,308 | | | 4,567,399 | |
| | Janus Henderson Global Research Fund - Class N Shares | | 37,203 | | | 4,081,868 | |
| | Janus Henderson Global Select Fund - Class N Shares | | 218,330 | | | 4,351,320 | |
| | Janus Henderson International Managed Volatility Fund - Class N Shares | | 457,883 | | | 4,336,146 | |
| | Janus Henderson Overseas Fund - Class N Shares | | 142,699 | | | 6,292,999 | |
| | Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | 443,736 | | | 6,252,230 | |
| | Janus Henderson Triton Fund - Class N Shares | | 208,688 | | | 8,620,883 | |
| | Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 526,881 | | | 6,691,386 | |
| | | 100,189,077 | |
Fixed Income Funds – 52.9% | | | |
| | Janus Henderson Flexible Bond Fund - Class N Shares | | 1,210,503 | | | 13,497,105 | |
| | Janus Henderson Global Bond Fund - Class N Shares | | 6,861,801 | | | 69,029,718 | |
| | Janus Henderson Multi-Sector Income Fund - Class N Shares | | 2,963,020 | | | 30,056,042 | |
| | | 112,582,865 | |
Total Investments (total cost $183,919,809) – 100.0% | | 212,771,942 | |
Liabilities, net of Cash, Receivables and Other Assets – (0)% | | (96,029) | |
Net Assets – 100% | | $212,675,913 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Allocation Fund - Conservative
Schedule of Investments
June 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Capital Gain Distributions from Underlying Funds(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 6/30/21 |
Investment Companies - 100.0% |
Equity Funds - 47.1% |
| | Janus Henderson Adaptive Global Allocation Fund - Class N Shares | $ | 316,684 | $ | 30,355 | $ | - | $ | 1,929,598 | $ | 11,182,312 |
| | Janus Henderson Asia Equity Fund - Class N Shares | | 4,171 | | 9,532 | | - | | 683,231 | | 3,328,421 |
| | Janus Henderson Contrarian Fund - Class N Shares | | 68,711 | | 462,758 | | 65,006 | | 2,367,358 | | 7,865,683 |
| | Janus Henderson Emerging Markets Fund - Class N Shares | | 82,165 | | 36,702 | | - | | 2,676,108 | | 10,825,062 |
| | Janus Henderson Enterprise Fund - Class N Shares | | 30,591 | | 719,213 | | 595,363 | | 1,002,551 | | 8,707,405 |
| | Janus Henderson European Focus Fund - Class N Shares | | 3,126 | | 91,040 | | - | | 215,792 | | 1,615,011 |
| | Janus Henderson Forty Fund - Class N Shares | | 10,467 | | 576,791 | | 477,216 | | 1,196,595 | | 7,841,675 |
| | Janus Henderson Global Equity Income Fund - Class N Shares | | 98,251 | | 933 | | - | | (61,952) | | 3,629,277 |
| | Janus Henderson Global Real Estate Fund - Class N Shares | | 46,101 | | 613 | | - | | 718,990 | | 4,567,399 |
| | Janus Henderson Global Research Fund - Class N Shares | | 21,762 | | 329,728 | | 139,324 | | 614,177 | | 4,081,868 |
| | Janus Henderson Global Select Fund - Class N Shares | | 72,518 | | 106,117 | | 142,914 | | 1,221,016 | | 4,351,320 |
| | Janus Henderson International Managed Volatility Fund - Class N Shares | | - | | 35,796 | | 42,746 | | 320,212 | | 4,336,146 |
| | Janus Henderson International Value Fund - Class N Shares | | 84,808 | | 435,193 | | - | | 613,095 | | - |
| | Janus Henderson Large Cap Value Fund - Class N Shares | | 146,210 | | 1,834,581 | | 201,523 | | (163,537) | | - |
| | Janus Henderson Mid Cap Value Fund - Class N Shares | | 71,516 | | 816,484 | | - | | 680,512 | | - |
| | Janus Henderson Overseas Fund - Class N Shares | | 31,161 | | 570,060 | | - | | 947,189 | | 6,292,999 |
| | Janus Henderson Small Cap Value Fund - Class N Shares | | 56,642 | | 915,806 | | - | | 516,918 | | - |
| | Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | - | | 535 | | - | | (35,494) | | 6,252,230 |
| | Janus Henderson Triton Fund - Class N Shares | | 16,305 | | 1,608,337 | | 311,535 | | 644,682 | | 8,620,883 |
| | Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 274,931 | | 13,581 | | 406,536 | | 641,094 | | 6,691,386 |
Total Equity Funds | $ | 1,436,120 | $ | 8,594,155 | $ | 2,382,163 | $ | 16,728,135 | $ | 100,189,077 |
Fixed Income Funds - 52.9% |
| | Janus Henderson Flexible Bond Fund - Class N Shares | | 343,000 | | 120,780 | | - | | (93,662) | | 13,497,105 |
| | Janus Henderson Global Bond Fund - Class N Shares | | 1,898,535 | | 568,335 | | 570,440 | | (734,589) | | 69,029,718 |
| | Janus Henderson Multi-Sector Income Fund - Class N Shares | | 1,232,578 | | 27,750 | | - | | 1,711,292 | | 30,056,042 |
Total Fixed Income Funds | $ | 3,474,113 | $ | 716,865 | $ | 570,440 | $ | 883,041 | $ | 112,582,865 |
Total Affiliated Investments - 100.0% | $ | 4,910,233 | $ | 9,311,020 | $ | 2,952,603 | $ | 17,611,176 | $ | 212,771,942 |
(1) For securities that were affiliated for a portion of the year ended June 30, 2021, this column reflects amounts for the entire year ended June 30, 2021 and not just the period in which the security was affiliated.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Conservative
Schedule of Investments
June 30, 2021
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 100.0% |
Equity Funds - 47.1% | |
| | Janus Henderson Adaptive Global Allocation Fund - Class N Shares | | 9,354,366 | | 1,119,194 | | (1,251,201) | | 11,182,312 |
| | Janus Henderson Asia Equity Fund - Class N Shares | | 2,002,304 | | 876,670 | | (243,316) | | 3,328,421 |
| | Janus Henderson Contrarian Fund - Class N Shares | | 4,699,158 | | 2,884,751 | | (2,548,342) | | 7,865,683 |
| | Janus Henderson Emerging Markets Fund - Class N Shares | | 5,817,567 | | 3,088,604 | | (793,919) | | 10,825,062 |
| | Janus Henderson Enterprise Fund - Class N Shares | | 5,487,278 | | 4,164,254 | | (2,665,891) | | 8,707,405 |
| | Janus Henderson European Focus Fund - Class N Shares | | 310,034 | | 1,397,417 | | (399,272) | | 1,615,011 |
| | Janus Henderson Forty Fund - Class N Shares | | 4,985,683 | | 2,883,505 | | (1,800,899) | | 7,841,675 |
| | Janus Henderson Global Equity Income Fund - Class N Shares | | - | | 3,746,703 | | (56,407) | | 3,629,277 |
| | Janus Henderson Global Real Estate Fund - Class N Shares | | 1,975,493 | | 2,113,389 | | (241,086) | | 4,567,399 |
| | Janus Henderson Global Research Fund - Class N Shares | | 488,729 | | 3,690,719 | | (1,041,485) | | 4,081,868 |
| | Janus Henderson Global Select Fund - Class N Shares | | 3,336,110 | | 607,405 | | (919,328) | | 4,351,320 |
| | Janus Henderson International Managed Volatility Fund - Class N Shares | | 1,826,426 | | 2,447,225 | | (293,513) | | 4,336,146 |
| | Janus Henderson International Value Fund - Class N Shares | | 3,220,353 | | 976,562 | | (5,245,203) | | - |
| | Janus Henderson Large Cap Value Fund - Class N Shares | | 5,107,820 | | 829,825 | | (7,608,689) | | - |
| | Janus Henderson Mid Cap Value Fund - Class N Shares | | 3,851,753 | | 1,526,149 | | (6,874,898) | | - |
| | Janus Henderson Overseas Fund - Class N Shares | | 5,699,404 | | 2,884,923 | | (3,808,577) | | 6,292,999 |
| | Janus Henderson Small Cap Value Fund - Class N Shares | | 3,855,647 | | 447,042 | | (5,735,413) | | - |
| | Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | - | | 6,385,480 | | (98,291) | | 6,252,230 |
| | Janus Henderson Triton Fund - Class N Shares | | 4,699,743 | | 5,118,725 | | (3,450,604) | | 8,620,883 |
| | Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 5,326,722 | | 1,946,034 | | (1,236,045) | | 6,691,386 |
Fixed Income Funds - 52.9% | |
| | Janus Henderson Flexible Bond Fund - Class N Shares | | 15,424,732 | | 1,363,671 | | (3,318,416) | | 13,497,105 |
| | Janus Henderson Global Bond Fund - Class N Shares | | 70,014,668 | | 11,584,966 | | (12,403,662) | | 69,029,718 |
| | Janus Henderson Multi-Sector Income Fund - Class N Shares | | 23,663,053 | | 10,180,407 | | (5,526,460) | | 30,056,042 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Allocation Fund - Conservative
Notes to Schedule of Investments and Other Information
| | |
Bloomberg Barclays Global Aggregate Bond Index | Bloomberg Barclays Global Aggregate Bond Index is a broad-based measure of the global investment grade fixed-rate debt markets. |
Global Conservative Allocation Index | Global Conservative Allocation Index is an internally-calculated, hypothetical combination of total returns from the Bloomberg Barclays Global Aggregate Bond Index (60%) and the MSCI All Country World IndexSM (40%). |
MSCI All Country World IndexSM | MSCI All Country World IndexSM reflects the equity market performance of global developed and emerging markets. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Investment Companies | | | | | | |
Equity Funds | $ | 100,189,077 | $ | - | $ | - |
Fixed Income Funds | | 112,582,865 | | - | | - |
Total Assets | $ | 212,771,942 | $ | - | $ | - |
| | | | | | | |
Janus Henderson Global Allocation Fund - Conservative
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Affiliated investments, at value (cost $183,919,809) | | $ | 212,771,942 | |
| Non-interested Trustees' deferred compensation | | | 5,187 | |
| Receivables: | | | | |
| | Dividends | | | 344,624 | |
| | Fund shares sold | | | 228,670 | |
| | Investments sold | | | 26,125 | |
| Other assets | | | 185 | |
Total Assets | | | 213,376,733 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Investments purchased | | | 344,624 | |
| | Fund shares repurchased | | | 221,409 | |
| | Professional fees | | | 38,391 | |
| | Registration fees | | | 34,006 | |
| | Transfer agent fees and expenses | | | 25,230 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 9,794 | |
| | Non-interested Trustees' deferred compensation fees | | | 5,187 | |
| | Advisory fees | | | 4,398 | |
| | Custodian fees | | | 1,756 | |
| | Non-interested Trustees' fees and expenses | | | 788 | |
| | Accrued expenses and other payables | | | 15,237 | |
Total Liabilities | | | 700,820 | |
Net Assets | | $ | 212,675,913 | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 173,719,601 | |
| Total distributable earnings (loss) | | | 38,956,312 | |
Total Net Assets | | $ | 212,675,913 | |
Net Assets - Class A Shares | | $ | 8,650,497 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 618,370 | |
Net Asset Value Per Share(1) | | $ | 13.99 | |
Maximum Offering Price Per Share(2) | | $ | 14.84 | |
Net Assets - Class C Shares | | $ | 9,355,507 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 684,311 | |
Net Asset Value Per Share(1) | | $ | 13.67 | |
Net Assets - Class D Shares | | $ | 174,449,140 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,404,469 | |
Net Asset Value Per Share | | $ | 14.06 | |
Net Assets - Class I Shares | | $ | 3,829,980 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 272,270 | |
Net Asset Value Per Share | | $ | 14.07 | |
Net Assets - Class S Shares | | $ | 108,101 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 7,738 | |
Net Asset Value Per Share | | $ | 13.97 | |
Net Assets - Class T Shares | | $ | 16,282,688 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,160,579 | |
Net Asset Value Per Share | | $ | 14.03 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Allocation Fund - Conservative
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends from affiliates | $ | 4,910,233 | |
Total Investment Income | | 4,910,233 | |
Expenses: | | | |
| Advisory fees | | 99,507 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 16,581 | |
| | Class C Shares | | 93,643 | |
| | Class S Shares | | 294 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 186,170 | |
| | Class S Shares | | 298 | |
| | Class T Shares | | 40,732 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 5,216 | |
| | Class C Shares | | 6,657 | |
| | Class I Shares | | 2,625 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 440 | |
| | Class C Shares | | 556 | |
| | Class D Shares | | 19,366 | |
| | Class I Shares | | 173 | |
| | Class S Shares | | 20 | |
| | Class T Shares | | 212 | |
| Registration fees | | 101,825 | |
| Professional fees | | 37,078 | |
| Shareholder reports expense | | 26,471 | |
| Custodian fees | | 11,535 | |
| Non-interested Trustees’ fees and expenses | | 3,299 | |
| Other expenses | | 15,824 | |
Total Expenses | | 668,522 | |
Less: Excess Expense Reimbursement and Waivers | | (24,138) | |
Net Expenses | | 644,384 | |
Net Investment Income/(Loss) | | 4,265,849 | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments in affiliates | | 9,311,020 | |
| Capital gain distributions from underlying funds | | 2,952,603 | |
Total Net Realized Gain/(Loss) on Investments | | 12,263,623 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments in affiliates | | 17,611,176 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 17,611,176 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 34,140,648 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Conservative
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 4,265,849 | | $ | 2,378,335 | |
| Net realized gain/(loss) on investments | | 12,263,623 | | | 7,064,599 | |
| Change in unrealized net appreciation/depreciation | | 17,611,176 | | | (4,771,544) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 34,140,648 | | | 4,671,390 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (247,607) | | | (204,890) | |
| | Class C Shares | | (399,435) | | | (477,832) | |
| | Class D Shares | | (7,418,407) | | | (7,276,513) | |
| | Class I Shares | | (135,889) | | | (166,244) | |
| | Class S Shares | | (5,074) | | | (16,463) | |
| | Class T Shares | | (741,866) | | | (815,963) | |
Net Decrease from Dividends and Distributions to Shareholders | | (8,948,278) | | | (8,957,905) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 3,879,150 | | | (337,827) | |
| | Class C Shares | | (2,624,753) | | | (2,430,172) | |
| | Class D Shares | | 6,164,076 | | | (8,427,261) | |
| | Class I Shares | | 49,605 | | | (330,320) | |
| | Class S Shares | | (34,377) | | | (633,525) | |
| | Class T Shares | | (997,550) | | | (1,955,403) | |
Net Increase/(Decrease) from Capital Share Transactions | | 6,436,151 | | | (14,114,508) | |
Net Increase/(Decrease) in Net Assets | | 31,628,521 | | | (18,401,023) | |
Net Assets: | | | | | | |
| Beginning of period | | 181,047,392 | | | 199,448,415 | |
| End of period | $ | 212,675,913 | | $ | 181,047,392 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Allocation Fund - Conservative
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.28 | | | $12.53 | | | $12.58 | | | $12.73 | | | $12.10 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.25 | | | 0.14 | | | 0.05 | | | 0.16 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 2.07 | | | 0.19 | | | 0.35 | | | 0.43 | | | 0.62 | |
| Total from Investment Operations | | 2.32 | | | 0.33 | | | 0.40 | | | 0.59 | | | 0.72 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.26) | | | (0.13) | | | (0.10) | | | (0.20) | | | (0.05) | |
| | Distributions (from capital gains) | | (0.35) | | | (0.45) | | | (0.35) | | | (0.54) | | | (0.04) | |
| Total Dividends and Distributions | | (0.61) | | | (0.58) | | | (0.45) | | | (0.74) | | | (0.09) | |
| Net Asset Value, End of Period | | $13.99 | | | $12.28 | | | $12.53 | | | $12.58 | | | $12.73 | |
| Total Return* | | 19.10% | | | 2.58% | | | 3.47% | | | 4.55% | | | 6.01% | |
| Net Assets, End of Period (in thousands) | | $8,650 | | | $4,030 | | | $4,505 | | | $4,407 | | | $4,507 | |
| Average Net Assets for the Period (in thousands) | | $6,632 | | | $4,381 | | | $4,379 | | | $4,494 | | | $7,313 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.47% | | | 0.47% | | | 0.46% | | | 0.47% | | | 0.46% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.47% | | | 0.47% | | | 0.46% | | | 0.47% | | | 0.46% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.84% | | | 1.13% | | | 0.43% | | | 1.27% | | | 0.83% | |
| Portfolio Turnover Rate | | 34% | | | 57% | | | 5% | | | 14% | | | 25% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.01 | | | $12.26 | | | $12.30 | | | $12.47 | | | $11.88 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.05 | | | (0.02) | | | 0.07 | | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | 1.98 | | | 0.18 | | | 0.33 | | | 0.41 | | | 0.62 | |
| Total from Investment Operations | | 2.16 | | | 0.23 | | | 0.31 | | | 0.48 | | | 0.65 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.03) | | | —(3) | | | (0.11) | | | (0.02) | |
| | Distributions (from capital gains) | | (0.35) | | | (0.45) | | | (0.35) | | | (0.54) | | | (0.04) | |
| Total Dividends and Distributions | | (0.50) | | | (0.48) | | | (0.35) | | | (0.65) | | | (0.06) | |
| Net Asset Value, End of Period | | $13.67 | | | $12.01 | | | $12.26 | | | $12.30 | | | $12.47 | |
| Total Return* | | 18.20% | | | 1.85% | | | 2.78% | | | 3.81% | | | 5.50% | |
| Net Assets, End of Period (in thousands) | | $9,356 | | | $10,655 | | | $13,392 | | | $15,665 | | | $16,752 | |
| Average Net Assets for the Period (in thousands) | | $9,960 | | | $12,057 | | | $14,347 | | | $16,576 | | | $18,722 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 1.15% | | | 1.18% | | | 1.18% | | | 1.14% | | | 1.00% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 1.15% | | | 1.18% | | | 1.18% | | | 1.14% | | | 1.00% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.38% | | | 0.41% | | | (0.13)% | | | 0.58% | | | 0.22% | |
| Portfolio Turnover Rate | | 34% | | | 57% | | | 5% | | | 14% | | | 25% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Conservative
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.34 | | | $12.59 | | | $12.63 | | | $12.77 | | | $12.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | �� | | | | | | |
| | Net investment income/(loss)(1) | | 0.30 | | | 0.16 | | | 0.09 | | | 0.19 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 2.05 | | | 0.20 | | | 0.34 | | | 0.43 | | | 0.63 | |
| Total from Investment Operations | | 2.35 | | | 0.36 | | | 0.43 | | | 0.62 | | | 0.74 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.28) | | | (0.16) | | | (0.12) | | | (0.22) | | | (0.11) | |
| | Distributions (from capital gains) | | (0.35) | | | (0.45) | | | (0.35) | | | (0.54) | | | (0.04) | |
| Total Dividends and Distributions | | (0.63) | | | (0.61) | | | (0.47) | | | (0.76) | | | (0.15) | |
| Net Asset Value, End of Period | | $14.06 | | | $12.34 | | | $12.59 | | | $12.63 | | | $12.77 | |
| Total Return* | | 19.27% | | | 2.77% | | | 3.70% | | | 4.78% | | | 6.19% | |
| Net Assets, End of Period (in thousands) | | $174,449 | | | $147,682 | | | $159,468 | | | $177,717 | | | $178,971 | |
| Average Net Assets for the Period (in thousands) | | $162,759 | | | $152,767 | | | $163,822 | | | $182,877 | | | $184,411 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.28% | | | 0.28% | | | 0.29% | | | 0.27% | | | 0.26% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.27% | | | 0.27% | | | 0.27% | | | 0.27% | | | 0.26% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 2.20% | | | 1.32% | | | 0.76% | | | 1.46% | | | 0.90% | |
| Portfolio Turnover Rate | | 34% | | | 57% | | | 5% | | | 14% | | | 25% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.34 | | | $12.58 | | | $12.63 | | | $12.77 | | | $12.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.29 | | | 0.17 | | | 0.11 | | | 0.20 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 2.07 | | | 0.20 | | | 0.32 | | | 0.43 | | | 0.65 | |
| Total from Investment Operations | | 2.36 | | | 0.37 | | | 0.43 | | | 0.63 | | | 0.75 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.28) | | | (0.16) | | | (0.13) | | | (0.23) | | | (0.12) | |
| | Distributions (from capital gains) | | (0.35) | | | (0.45) | | | (0.35) | | | (0.54) | | | (0.04) | |
| Total Dividends and Distributions | | (0.63) | | | (0.61) | | | (0.48) | | | (0.77) | | | (0.16) | |
| Net Asset Value, End of Period | | $14.07 | | | $12.34 | | | $12.58 | | | $12.63 | | | $12.77 | |
| Total Return* | | 19.39% | | | 2.89% | | | 3.71% | | | 4.85% | | | 6.29% | |
| Net Assets, End of Period (in thousands) | | $3,830 | | | $3,381 | | | $3,786 | | | $5,601 | | | $5,078 | |
| Average Net Assets for the Period (in thousands) | | $3,247 | | | $3,491 | | | $4,489 | | | $5,375 | | | $4,411 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.22% | | | 0.21% | | | 0.21% | | | 0.22% | | | 0.21% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.22% | | | 0.21% | | | 0.21% | | | 0.22% | | | 0.21% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 2.16% | | | 1.37% | | | 0.92% | | | 1.54% | | | 0.82% | |
| Portfolio Turnover Rate | | 34% | | | 57% | | | 5% | | | 14% | | | 25% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Allocation Fund - Conservative
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.25 | | | $12.45 | | | $12.51 | | | $12.66 | | | $12.07 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.25 | | | 0.11 | | | 0.09 | | | 0.16 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 2.02 | | | 0.20 | | | 0.29 | | | 0.40 | | | 0.63 | |
| Total from Investment Operations | | 2.27 | | | 0.31 | | | 0.38 | | | 0.56 | | | 0.70 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.20) | | | (0.06) | | | (0.09) | | | (0.17) | | | (0.07) | |
| | Distributions (from capital gains) | | (0.35) | | | (0.45) | | | (0.35) | | | (0.54) | | | (0.04) | |
| Total Dividends and Distributions | | (0.55) | | | (0.51) | | | (0.44) | | | (0.71) | | | (0.11) | |
| Net Asset Value, End of Period | | $13.97 | | | $12.25 | | | $12.45 | | | $12.51 | | | $12.66 | |
| Total Return* | | 18.70% | | | 2.43% | | | 3.32% | | | 4.35% | | | 5.84% | |
| Net Assets, End of Period (in thousands) | | $108 | | | $126 | | | $765 | | | $960 | | | $1,541 | |
| Average Net Assets for the Period (in thousands) | | $119 | | | $407 | | | $860 | | | $1,266 | | | $1,573 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.65% | | | 0.63% | | | 0.56% | | | 0.68% | | | 0.61% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.65% | | | 0.63% | | | 0.56% | | | 0.64% | | | 0.61% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.88% | | | 0.90% | | | 0.76% | | | 1.28% | | | 0.58% | |
| Portfolio Turnover Rate | | 34% | | | 57% | | | 5% | | | 14% | | | 25% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.32 | | | $12.56 | | | $12.61 | | | $12.75 | | | $12.15 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.29 | | | 0.16 | | | 0.10 | | | 0.18 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 2.04 | | | 0.20 | | | 0.31 | | | 0.43 | | | 0.63 | |
| Total from Investment Operations | | 2.33 | | | 0.36 | | | 0.41 | | | 0.61 | | | 0.74 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.27) | | | (0.15) | | | (0.11) | | | (0.21) | | | (0.10) | |
| | Distributions (from capital gains) | | (0.35) | | | (0.45) | | | (0.35) | | | (0.54) | | | (0.04) | |
| Total Dividends and Distributions | | (0.62) | | | (0.60) | | | (0.46) | | | (0.75) | | | (0.14) | |
| Net Asset Value, End of Period | | $14.03 | | | $12.32 | | | $12.56 | | | $12.61 | | | $12.75 | |
| Total Return* | | 19.12% | | | 2.78% | | | 3.51% | | | 4.71% | | | 6.21% | |
| Net Assets, End of Period (in thousands) | | $16,283 | | | $15,174 | | | $17,532 | | | $23,342 | | | $24,104 | |
| Average Net Assets for the Period (in thousands) | | $16,293 | | | $16,406 | | | $19,653 | | | $23,661 | | | $26,862 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.39% | | | 0.38% | | | 0.39% | | | 0.38% | | | 0.36% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.35% | | | 0.36% | | | 0.37% | | | 0.35% | | | 0.33% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 2.14% | | | 1.27% | | | 0.78% | | | 1.41% | | | 0.91% | |
| Portfolio Turnover Rate | | 34% | | | 57% | | | 5% | | | 14% | | | 25% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
| | |
See Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Conservative
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Allocation Fund - Conservative (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Fund operates as a “fund of funds,” meaning substantially all of the Fund’s assets will be invested in other Janus Henderson funds (the “underlying funds”). The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks total return through a primary emphasis on income with a secondary emphasis on growth of capital. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (“Janus Capital”) or its affiliates to offer Class S Shares on their supermarket platforms.
Janus Henderson Global Allocation Fund - Conservative
Notes to Financial Statements
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
Underlying Funds
The Fund invests in a variety of underlying funds to pursue a target allocation of equity investments, fixed-income securities, and alternative investments and may also invest in money market instruments or cash/cash equivalents. The Fund has a target allocation, which is how the Fund's investments generally will be allocated among the major asset classes over the long term, as well as normal ranges, under normal market conditions, within which the Fund's asset class allocations generally will vary over short-term periods. The Fund's long-term expected average asset allocation is as follows: 40% to equity investments, 55% to fixed-income securities and money market instruments, and 5% to alternative investments. Additional details and descriptions of the investment objectives and strategies of each of the underlying funds are available in the Fund’s and underlying funds’ prospectuses available at janushenderson.com. The Trustees of the underlying funds may change the investment objectives or strategies of the underlying funds at any time without prior notice to the Fund’s shareholders.
The following accounting policies have been followed by the Fund and are in conformity with US GAAP.
Investment Valuation
The Fund’s net asset value (“NAV”) is calculated based upon the NAV of each of the underlying funds in which the Fund invests on the day of valuation. The NAV for each class of the underlying funds is computed by dividing the total value of securities and other assets allocated to the class, less liabilities allocated to that class, by the total number of shares outstanding for the class.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
The Fund classifies each of its investments in underlying funds as Level 1, without consideration as to the classification level of the specific investments held by the underlying funds. There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities held by the underlying funds will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and
Janus Henderson Global Allocation Fund - Conservative
Notes to Financial Statements
losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Dividend distributions received from the underlying funds are recorded on the ex-dividend date. Upon receipt of the notification from an underlying fund, and subsequent to the ex-dividend date, a part or all of the dividend income originally recorded by the Fund may be reclassified as a tax return of capital by reducing the cost basis of the underlying fund and/or increasing the realized gain on sales of investments in the underlying fund.
Expenses
The Fund bears expenses incurred specifically on its behalf. Additionally, the Fund, as a shareholder in the underlying funds, will also indirectly bear its pro rata share of the expenses incurred by the underlying funds. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The underlying funds may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the underlying funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.05% of its average daily net assets.
Janus Henderson Global Allocation Fund - Conservative
Notes to Financial Statements
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any expenses of an underlying fund (acquired fund fees and expenses), the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.14% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s and the underlying funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or
Janus Henderson Global Allocation Fund - Conservative
Notes to Financial Statements
similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”), a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement, and is authorized to perform, or cause others to perform, the administration services necessary for the operation of the Fund. Janus Capital does not receive compensation for serving as administrator and it bears the expenses related to operation of the Fund, such as, but not limited to fund accounting and tax services; shareholder servicing; and preparation of various documents filed with the SEC. The Fund bears costs related to any compensation, fees, or reimbursements paid to Trustees who are independent of Janus Capital; fees and expenses of counsel to the Independent Trustees; fees and expenses of consultants to the Fund; custody fees; audit expenses; brokerage commissions and all other expenses in connection with execution of portfolio transactions; blue sky registration costs; interest; all federal, state and local taxes (including stamp, excise, income, and franchise taxes); expenses of shareholder meetings, including the preparation, printing, and distribution of proxy statements, notices, and reports to shareholders; expenses of printing and mailing to existing shareholders prospectuses, statements of additional information, shareholder reports, and other materials required to be mailed to shareholders by federal or state laws or regulations; transfer agency fees and expenses payable pursuant to a transfer agency agreement between the Trust and Janus Services on behalf of the Fund; any litigation; and other extraordinary expenses. In addition, some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Janus Henderson Global Allocation Fund - Conservative
Notes to Financial Statements
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $4,475.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $15.
3. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 2,153,444 | $ 9,467,590 | $ - | $ - | $ - | $ (4,035) | $ 27,339,313 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 185,432,629 | $27,437,097 | $ (97,784) | $ 27,339,313 |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 3,941,416 | $ 5,006,862 | $ - | $ - | |
Janus Henderson Global Allocation Fund - Conservative
Notes to Financial Statements
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 2,204,154 | $ 6,753,751 | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ 427,287 | $ (110,749) | $ (316,538) |
Capital has been adjusted by $427,287, including $284,734 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
4. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 355,356 | $ 4,764,384 | | 71,641 | $ 881,138 |
Reinvested dividends and distributions | 15,343 | 206,357 | | 16,041 | 197,948 |
Shares repurchased | (80,383) | (1,091,591) | | (119,165) | (1,416,913) |
Net Increase/(Decrease) | 290,316 | $ 3,879,150 | | (31,483) | $ (337,827) |
Class C Shares: | | | | | |
Shares sold | 173,657 | $ 2,303,786 | | 111,317 | $ 1,287,096 |
Reinvested dividends and distributions | 30,139 | 397,540 | | 36,470 | 441,656 |
Shares repurchased | (406,421) | (5,326,079) | | (353,261) | (4,158,924) |
Net Increase/(Decrease) | (202,625) | $ (2,624,753) | | (205,474) | $ (2,430,172) |
Class D Shares: | | | | | |
Shares sold | 1,571,888 | $21,315,238 | | 1,090,647 | $13,210,970 |
Reinvested dividends and distributions | 543,690 | 7,345,257 | | 582,292 | 7,214,596 |
Shares repurchased | (1,674,219) | (22,496,419) | | (2,376,940) | (28,852,827) |
Net Increase/(Decrease) | 441,359 | $ 6,164,076 | | (704,001) | $ (8,427,261) |
Class I Shares: | | | | | |
Shares sold | 109,209 | $ 1,505,304 | | 98,114 | $ 1,207,176 |
Reinvested dividends and distributions | 10,010 | 135,239 | | 13,369 | 165,647 |
Shares repurchased | (120,814) | (1,590,938) | | (138,475) | (1,703,143) |
Net Increase/(Decrease) | (1,595) | $ 49,605 | | (26,992) | $ (330,320) |
Class S Shares: | | | | | |
Shares sold | 599 | $ 7,939 | | 2,822 | $ 35,138 |
Reinvested dividends and distributions | 377 | 5,074 | | 1,336 | 16,463 |
Shares repurchased | (3,530) | (47,390) | | (55,331) | (685,126) |
Net Increase/(Decrease) | (2,554) | $ (34,377) | | (51,173) | $ (633,525) |
Class T Shares: | | | | | |
Shares sold | 325,413 | $ 4,354,253 | | 260,055 | $ 3,251,974 |
Reinvested dividends and distributions | 53,074 | 715,439 | | 65,181 | 806,292 |
Shares repurchased | (449,814) | (6,067,242) | | (488,708) | (6,013,669) |
Net Increase/(Decrease) | (71,327) | $ (997,550) | | (163,472) | $ (1,955,403) |
Janus Henderson Global Allocation Fund - Conservative
Notes to Financial Statements
5. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$72,263,620 | $ 67,548,368 | $ - | $ - |
6. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Global Allocation Fund - Conservative
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Allocation Fund - Conservative
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Global Allocation Fund - Conservative (one of the funds constituting Janus Investment Fund, referred to hereafter as the “Fund”) as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Global Allocation Fund - Conservative
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Global Allocation Fund - Conservative
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Global Allocation Fund - Conservative
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Global Allocation Fund - Conservative
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Global Allocation Fund - Conservative
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Capital Gain Distributions | $5,291,596 |
Foreign Taxes Paid | $30,166 |
Foreign Source Income | $65,375 |
Dividends Received Deduction Percentage | 12% |
Qualified Dividend Income Percentage | 17% |
Janus Henderson Global Allocation Fund - Conservative
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Global Allocation Fund - Conservative
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Allocation Fund - Conservative
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Global Allocation Fund - Conservative
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Global Allocation Fund - Conservative
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Allocation Fund - Conservative
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Global Allocation Fund - Conservative
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Ashwin Alankar
151 Detroit Street
Denver, CO 80206
DOB: 1974 | Executive Vice President and Portfolio Manager
Janus Henderson Global Allocation Fund – Conservative | 9/14-Present | Head of Global Asset Allocation of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. Formerly, Co-Chief Investment Officer of AllianceBernstein’s Tail Risk Parity (2010-2014). |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
Janus Henderson Global Allocation Fund - Conservative
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93020 08-21 |
| | | |
| | | |
| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson Global Allocation Fund - Growth |
| | |
| | Janus Investment Fund |
| |
| | | |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Allocation Fund - Growth
Janus Henderson Global Allocation Fund - Growth (unaudited)
| | | | | | |
FUND SNAPSHOT This Fund of Funds offers broad global diversification for investors by utilizing the full spectrum of Janus Henderson’s investment expertise and solutions, with the goal of providing higher risk-adjusted returns than the broad markets. | | | | | 
Ashwin Alankar portfolio manager |
| | | |
PERFORMANCE OVERVIEW
Janus Henderson Global Allocation Fund – Growth’s Class I Shares returned 34.07% for the 12-month period ended June 30, 2021. This compares with a return of 39.27% for the MSCI All Country World IndexSM, the Fund’s primary benchmark, and a return of 31.24% for its secondary benchmark, the Global Growth Allocation Index, an internally calculated, hypothetical combination of total returns from the MSCI All Country World Index (80%) and the Bloomberg Barclays Global Aggregate Bond Index (20%).
MARKET ENVIRONMENT
Global financial markets rallied during the period, first on the back of extraordinary policy initiatives aimed at dampening the worst effects from the COVID-19 pandemic on the world’s economy, and then on growing optimism that vaccines would gain approval and become widely available. While riskier assets maintained an upward trajectory throughout, safer government bonds gave back some of their gains during the winter as investors began to price in more durable economic growth and with it a rising chance of inflation. As consensus coalesced around the spring spike in inflation being transitory, bonds reversed course, sending rates once again lower. The rally in riskier assets, meanwhile, continued, with global equities finishing the period near record highs.
PERFORMANCE DISCUSSION
Janus Henderson Global Allocation Fund – Growth invests across a broad set of Janus Henderson funds that span a wide range of global asset categories with a base allocation of 70% to 85% equity investments, 10% to 25% fixed income investments and 5% to 20% alternative investments (to the extent available) that are monitored and rebalanced continually. The Fund is structured as a “fund of funds” portfolio that provides investors with broad, diversified exposure to various types of investments with an emphasis on managing investment risk.
Detracting from performance were the Janus Henderson Small-Mid Cap Value Fund and the Janus Henderson Global Equity Income Fund as these equity segments were unable to keep up with the large-cap growth companies that drove markets higher during the period. Contributing to returns were the Janus Henderson Contrarian Fund and the Janus Henderson Emerging Markets Fund. The former performed well given its underweight to sectors that vastly underperformed the market during the period. A key driver of the Janus Henderson Emerging Markets Fund was these regions’ mid-period outperformance as major north Asian economies recovered more rapidly from the depths of the pandemic than did other parts of the world.
OUTLOOK
At a high level, the latter months of the period were smooth sailing for capital markets. The resilience of equities continued and U.S. Treasuries took a pause from their recent sell-off. The yield on 10-year notes fell by roughly 30 basis points over the final quarter.
Yet under this “calmness,” there were many gyrations. These were a reflection of the battle between the market and the Federal Reserve (Fed) – and even within the Fed – on the future course of inflation and growth and whether the time is coming for liquidity conditions to normalize and the central bank to step back from high levels of accommodation. This led to violent fluctuations in the performance of growth versus value stocks. At times, we saw value considerably outperform growth and growth outperform value at others.
Sharp moves also unfolded in the Treasury markets as inflation fears sent yields higher, only to reverse on Fed rhetoric echoing their confidence that inflation will be transitory and economic damage from the pandemic is still far-reaching, thus, requiring stimulus for many more years. While the tug-of-war continues, capital markets sided with
Janus Henderson Global Allocation Fund - Growth (unaudited)
the Fed by the end of the quarter; the Fed’s reassurance that stimulus is not going away anytime soon sent equities to higher highs and quelled the sell-off in yields.
Thank you for investing in Janus Henderson Global Allocation Fund – Growth.
Janus Henderson Global Allocation Fund - Growth (unaudited)
Fund At A Glance
June 30, 2021
| | | | |
Holdings - (% of Net Assets) | | | |
Janus Henderson Emerging Markets Fund - Class N Shares | | 10.0 | % |
Janus Henderson Enterprise Fund - Class N Shares | | 8.0 | |
Janus Henderson Triton Fund - Class N Shares | | 8.0 | |
Janus Henderson Global Bond Fund - Class N Shares | | 7.8 | |
Janus Henderson Contrarian Fund - Class N Shares | | 7.3 | |
Janus Henderson Forty Fund - Class N Shares | | 7.2 | |
Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 6.2 | |
Janus Henderson Overseas Fund - Class N Shares | | 5.8 | |
Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | 5.8 | |
Janus Henderson Adaptive Global Allocation Fund - Class N Shares | | 5.2 | |
Janus Henderson Global Real Estate Fund - Class N Shares | | 4.2 | |
Janus Henderson Global Select Fund - Class N Shares | | 4.0 | |
Janus Henderson International Managed Volatility Fund - Class N Shares | | 4.0 | |
Janus Henderson Global Research Fund - Class N Shares | | 3.8 | |
Janus Henderson Global Equity Income Fund - Class N Shares | | 3.4 | |
Janus Henderson Multi-Sector Income Fund - Class N Shares | | 3.3 | |
Janus Henderson Asia Equity Fund - Class N Shares | | 3.1 | |
Janus Henderson European Focus Fund - Class N Shares | | 1.5 | |
Janus Henderson Flexible Bond Fund - Class N Shares | | 1.4 | |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Equity Funds | | 87.5% | |
Fixed Income Funds | | 12.5% | |
Other | | (0.0)% |
| | | 100.0% |
Janus Henderson Global Allocation Fund - Growth (unaudited)
Performance
| |
See important disclosures on the next page. |
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| | | | | | | | | |
Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 33.80% | 10.81% | 7.77% | 7.27% | | | 1.18% |
Class A Shares at MOP | | 26.10% | 9.49% | 7.14% | 6.86% | | | |
Class C Shares at NAV | | 32.85% | 10.03% | 7.02% | 6.51% | | | 1.93% |
Class C Shares at CDSC | | 31.85% | 10.03% | 7.02% | 6.51% | | | |
Class D Shares | | 34.01% | 10.98% | 7.95% | 7.45% | | | 1.00% |
Class I Shares | | 34.07% | 11.06% | 8.03% | 7.52% | | | 0.94% |
Class S Shares | | 33.53% | 10.60% | 7.59% | 7.07% | | | 1.34% |
Class T Shares | | 33.96% | 10.91% | 7.89% | 7.40% | | | 1.09% |
MSCI All Country World Index | | 39.27% | 14.61% | 9.90% | 7.76% | | | |
Global Growth Allocation Index | | 31.24% | 12.22% | 8.44% | 7.14% | | | |
Morningstar Quartile - Class T Shares | | 1st | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for World Allocation Funds | | 40/468 | 26/419 | 38/326 | 28/217 | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Janus Henderson Global Allocation Fund - Growth (unaudited)
Performance
Performance of the Global Allocation Funds depends on that of the underlying funds. They are subject to the volatility of the financial markets. Because Janus Capital Management is the adviser to the Fund and to the underlying affiliated funds held within the Fund, it is subject to certain potential conflicts of interest.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective share class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s 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 each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – December 30, 2005
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Allocation Fund - Growth (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21)†† |
Class A Shares | $1,000.00 | $1,091.00 | $2.28 | | $1,000.00 | $1,022.61 | $2.21 | 0.44% |
Class C Shares | $1,000.00 | $1,087.40 | $5.80 | | $1,000.00 | $1,019.24 | $5.61 | 1.12% |
Class D Shares | $1,000.00 | $1,091.60 | $1.40 | | $1,000.00 | $1,023.46 | $1.35 | 0.27% |
Class I Shares | $1,000.00 | $1,092.30 | $1.04 | | $1,000.00 | $1,023.80 | $1.00 | 0.20% |
Class S Shares | $1,000.00 | $1,090.20 | $3.11 | | $1,000.00 | $1,021.82 | $3.01 | 0.60% |
Class T Shares | $1,000.00 | $1,091.70 | $1.71 | | $1,000.00 | $1,023.16 | $1.66 | 0.33% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
†† | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
Janus Henderson Global Allocation Fund - Growth
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Investment Companies£– 100.0% | | | |
Equity Funds – 87.5% | | | |
| | Janus Henderson Adaptive Global Allocation Fund - Class N Shares | | 1,200,755 | | | $14,350,204 | |
| | Janus Henderson Asia Equity Fund - Class N Shares | | 590,313 | | | 8,488,580 | |
| | Janus Henderson Contrarian Fund - Class N Shares | | 633,170 | | | 20,073,819 | |
| | Janus Henderson Emerging Markets Fund - Class N Shares | | 2,103,989 | | | 27,672,452 | |
| | Janus Henderson Enterprise Fund - Class N Shares | | 127,526 | | | 22,239,287 | |
| | Janus Henderson European Focus Fund - Class N Shares | | 94,457 | | | 4,144,915 | |
| | Janus Henderson Forty Fund - Class N Shares | | 342,259 | | | 20,013,791 | |
| | Janus Henderson Global Equity Income Fund - Class N Shares | | 1,357,793 | | | 9,287,138 | |
| | Janus Henderson Global Real Estate Fund - Class N Shares | | 779,723 | | | 11,664,707 | |
| | Janus Henderson Global Research Fund - Class N Shares | | 95,220 | | | 10,449,600 | |
| | Janus Henderson Global Select Fund - Class N Shares | | 557,508 | | | 11,112,246 | |
| | Janus Henderson International Managed Volatility Fund - Class N Shares | | 1,172,189 | | | 11,101,760 | |
| | Janus Henderson Overseas Fund - Class N Shares | | 364,950 | | | 16,096,329 | |
| | Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | 1,133,130 | | | 15,965,735 | |
| | Janus Henderson Triton Fund - Class N Shares | | 532,919 | | | 22,016,638 | |
| | Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 1,347,856 | | | 17,118,303 | |
| | | 241,795,504 | |
Fixed Income Funds – 12.5% | | | |
| | Janus Henderson Flexible Bond Fund - Class N Shares | | 349,260 | | | 3,894,244 | |
| | Janus Henderson Global Bond Fund - Class N Shares | | 2,150,213 | | | 21,631,144 | |
| | Janus Henderson Multi-Sector Income Fund - Class N Shares | | 908,392 | | | 9,215,278 | |
| | | 34,740,666 | |
Total Investments (total cost $217,032,382) – 100.0% | | 276,536,170 | |
Liabilities, net of Cash, Receivables and Other Assets – (0)% | | (108,999) | |
Net Assets – 100% | | $276,427,171 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Allocation Fund - Growth
Schedule of Investments
June 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Capital Gain Distributions from Underlying Funds(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 6/30/21 |
Investment Companies - 100.0% |
Equity Funds - 87.5% |
| | Janus Henderson Adaptive Global Allocation Fund - Class N Shares | $ | 381,920 | $ | 37,238 | $ | - | $ | 2,388,075 | $ | 14,350,204 |
| | Janus Henderson Asia Equity Fund - Class N Shares | | 10,328 | | 69,641 | | - | | 1,680,478 | | 8,488,580 |
| | Janus Henderson Contrarian Fund - Class N Shares | | 170,753 | | 1,189,902 | | 161,548 | | 5,983,339 | | 20,073,819 |
| | Janus Henderson Emerging Markets Fund - Class N Shares | | 203,959 | | 205,193 | | - | | 6,729,995 | | 27,672,452 |
| | Janus Henderson Enterprise Fund - Class N Shares | | 75,887 | | 1,968,300 | | 1,476,919 | | 2,445,702 | | 22,239,287 |
| | Janus Henderson European Focus Fund - Class N Shares | | 7,823 | | 321,717 | | - | | 506,603 | | 4,144,915 |
| | Janus Henderson Forty Fund - Class N Shares | | 26,013 | | 1,894,663 | | 1,185,948 | | 2,577,056 | | 20,013,791 |
| | Janus Henderson Global Equity Income Fund - Class N Shares | | 251,567 | | 1,101 | | - | | (158,688) | | 9,287,138 |
| | Janus Henderson Global Real Estate Fund - Class N Shares | | 116,557 | | (2,182) | | - | | 1,851,501 | | 11,664,707 |
| | Janus Henderson Global Research Fund - Class N Shares | | 54,009 | | 983,659 | | 345,768 | | 1,535,432 | | 10,449,600 |
| | Janus Henderson Global Select Fund - Class N Shares | | 180,115 | | 245,353 | | 354,958 | | 3,109,400 | | 11,112,246 |
| | Janus Henderson International Managed Volatility Fund - Class N Shares | | - | | 162,739 | | 105,848 | | 708,181 | | 11,101,760 |
| | Janus Henderson International Value Fund - Class N Shares | | 181,597 | | 599,615 | | - | | 1,801,250 | | - |
| | Janus Henderson Large Cap Value Fund - Class N Shares | | 362,330 | | 4,198,827 | | 499,405 | | (106,034) | | - |
| | Janus Henderson Mid Cap Value Fund - Class N Shares | | 183,516 | | 2,678,851 | | - | | 1,198,620 | | - |
| | Janus Henderson Overseas Fund - Class N Shares | | 77,425 | | 1,280,727 | | - | | 2,597,532 | | 16,096,329 |
| | Janus Henderson Small Cap Value Fund - Class N Shares | | 150,055 | | 3,209,331 | | - | | 577,820 | | - |
| | Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | - | | 389 | | - | | (90,660) | | 15,965,735 |
| | Janus Henderson Triton Fund - Class N Shares | | 40,488 | | 3,639,191 | | 773,582 | | 2,017,558 | | 22,016,638 |
| | Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 681,981 | | 529,670 | | 1,008,435 | | 1,159,501 | | 17,118,303 |
Total Equity Funds | $ | 3,156,323 | $ | 23,213,928 | $ | 5,912,410 | $ | 38,512,661 | $ | 241,795,504 |
Fixed Income Funds - 12.5% |
| | Janus Henderson Flexible Bond Fund - Class N Shares | | 115,955 | | 226,309 | | - | | (190,370) | | 3,894,244 |
| | Janus Henderson Global Bond Fund - Class N Shares | | 690,098 | | 646,019 | | 206,220 | | (547,732) | | 21,631,144 |
| | Janus Henderson Multi-Sector Income Fund - Class N Shares | | 371,607 | | 126,727 | | - | | 393,905 | | 9,215,278 |
Total Fixed Income Funds | $ | 1,177,660 | $ | 999,055 | $ | 206,220 | $ | (344,197) | $ | 34,740,666 |
Total Affiliated Investments - 100.0% | $ | 4,333,983 | $ | 24,212,983 | $ | 6,118,630 | $ | 38,168,464 | $ | 276,536,170 |
(1) For securities that were affiliated for a portion of the year ended June 30, 2021, this column reflects amounts for the entire year ended June 30, 2021 and not just the period in which the security was affiliated.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Growth
Schedule of Investments
June 30, 2021
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 100.0% |
Equity Funds - 87.5% | |
| | Janus Henderson Adaptive Global Allocation Fund - Class N Shares | | 11,515,026 | | 1,670,105 | | (1,260,240) | | 14,350,204 |
| | Janus Henderson Asia Equity Fund - Class N Shares | | 5,275,119 | | 2,152,329 | | (688,987) | | 8,488,580 |
| | Janus Henderson Contrarian Fund - Class N Shares | | 12,712,589 | | 6,667,895 | | (6,479,906) | | 20,073,819 |
| | Janus Henderson Emerging Markets Fund - Class N Shares | | 15,107,730 | | 8,023,756 | | (2,394,222) | | 27,672,452 |
| | Janus Henderson Enterprise Fund - Class N Shares | | 14,427,562 | | 9,313,625 | | (5,915,902) | | 22,239,287 |
| | Janus Henderson European Focus Fund - Class N Shares | | 808,194 | | 4,196,494 | | (1,688,093) | | 4,144,915 |
| | Janus Henderson Forty Fund - Class N Shares | | 13,419,552 | | 7,505,400 | | (5,382,880) | | 20,013,791 |
| | Janus Henderson Global Equity Income Fund - Class N Shares | | - | | 9,559,498 | | (114,773) | | 9,287,138 |
| | Janus Henderson Global Real Estate Fund - Class N Shares | | 5,173,160 | | 5,296,109 | | (653,881) | | 11,664,707 |
| | Janus Henderson Global Research Fund - Class N Shares | | 3,097,205 | | 6,926,637 | | (2,093,333) | | 10,449,600 |
| | Janus Henderson Global Select Fund - Class N Shares | | 8,235,803 | | 1,354,690 | | (1,833,000) | | 11,112,246 |
| | Janus Henderson International Managed Volatility Fund - Class N Shares | | 4,805,177 | | 6,398,469 | | (972,806) | | 11,101,760 |
| | Janus Henderson International Value Fund - Class N Shares | | 9,300,591 | | 808,155 | | (12,509,611) | | - |
| | Janus Henderson Large Cap Value Fund - Class N Shares | | 13,393,488 | | 1,076,501 | | (18,562,782) | | - |
| | Janus Henderson Mid Cap Value Fund - Class N Shares | | 9,954,849 | | 3,598,028 | | (17,430,348) | | - |
| | Janus Henderson Overseas Fund - Class N Shares | | 13,332,361 | | 7,310,760 | | (8,425,051) | | 16,096,329 |
| | Janus Henderson Small Cap Value Fund - Class N Shares | | 9,644,842 | | 1,521,360 | | (14,953,353) | | - |
| | Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | - | | 16,255,738 | | (199,732) | | 15,965,735 |
| | Janus Henderson Triton Fund - Class N Shares | | 12,701,026 | | 13,020,077 | | (9,361,214) | | 22,016,638 |
| | Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 14,003,260 | | 5,041,266 | | (3,615,394) | | 17,118,303 |
Fixed Income Funds - 12.5% | |
| | Janus Henderson Flexible Bond Fund - Class N Shares | | 6,774,708 | | 205,063 | | (3,121,466) | | 3,894,244 |
| | Janus Henderson Global Bond Fund - Class N Shares | | 30,813,880 | | 2,584,845 | | (11,865,868) | | 21,631,144 |
| | Janus Henderson Multi-Sector Income Fund - Class N Shares | | 8,178,875 | | 5,309,936 | | (4,794,165) | | 9,215,278 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Allocation Fund - Growth
Notes to Schedule of Investments and Other Information
| | |
Bloomberg Barclays Global Aggregate Bond Index | Bloomberg Barclays Global Aggregate Bond Index is a broad-based measure of the global investment grade fixed-rate debt markets. |
Global Growth Allocation Index | Global Growth Allocation Index is an internally-calculated, hypothetical combination of total returns from the MSCI All Country World IndexSM (80%) and the Bloomberg Barclays Global Aggregate Bond Index (20%). |
MSCI All Country World IndexSM | MSCI All Country World IndexSM reflects the equity market performance of global developed and emerging markets. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Investment Companies | | | | | | |
Equity Funds | $ | 241,795,504 | $ | - | $ | - |
Fixed Income Funds | | 34,740,666 | | - | | - |
Total Assets | $ | 276,536,170 | $ | - | $ | - |
| | | | | | | |
Janus Henderson Global Allocation Fund - Growth
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Affiliated investments, at value (cost $217,032,382) | | $ | 276,536,170 | |
| Non-interested Trustees' deferred compensation | | | 6,737 | |
| Receivables: | | | | |
| | Dividends | | | 359,652 | |
| | Investments sold | | | 195,792 | |
| | Fund shares sold | | | 23,548 | |
| Other assets | | | 234 | |
Total Assets | | | 277,122,133 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Investments purchased | | | 359,324 | |
| | Fund shares repurchased | | | 177,954 | |
| | Professional fees | | | 37,888 | |
| | Transfer agent fees and expenses | | | 34,449 | |
| | Registration fees | | | 32,876 | |
| | Advisory fees | | | 11,367 | |
| | Non-interested Trustees' deferred compensation fees | | | 6,737 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 4,902 | |
| | Custodian fees | | | 1,773 | |
| | Non-interested Trustees' fees and expenses | | | 998 | |
| | Accrued expenses and other payables | | | 26,694 | |
Total Liabilities | | | 694,962 | |
Net Assets | | $ | 276,427,171 | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 192,423,054 | |
| Total distributable earnings (loss) | | | 84,004,117 | |
Total Net Assets | | $ | 276,427,171 | |
Net Assets - Class A Shares | | $ | 6,002,726 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 363,103 | |
Net Asset Value Per Share(1) | | $ | 16.53 | |
Maximum Offering Price Per Share(2) | | $ | 17.54 | |
Net Assets - Class C Shares | | $ | 4,096,169 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 253,471 | |
Net Asset Value Per Share(1) | | $ | 16.16 | |
Net Assets - Class D Shares | | $ | 233,735,097 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 14,013,624 | |
Net Asset Value Per Share | | $ | 16.68 | |
Net Assets - Class I Shares | | $ | 14,799,409 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 887,512 | |
Net Asset Value Per Share | | $ | 16.68 | |
Net Assets - Class S Shares | | $ | 1,408,464 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 85,705 | |
Net Asset Value Per Share | | $ | 16.43 | |
Net Assets - Class T Shares | | $ | 16,385,306 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 983,972 | |
Net Asset Value Per Share | | $ | 16.65 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Allocation Fund - Growth
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends from affiliates | $ | 4,333,983 | |
Total Investment Income | | 4,333,983 | |
Expenses: | | | |
| Advisory fees | | 125,908 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 12,207 | |
| | Class C Shares | | 40,437 | |
| | Class S Shares | | 3,296 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 243,930 | |
| | Class S Shares | | 3,313 | |
| | Class T Shares | | 37,998 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 3,910 | |
| | Class C Shares | | 3,715 | |
| | Class I Shares | | 10,408 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 336 | |
| | Class C Shares | | 243 | |
| | Class D Shares | | 36,535 | |
| | Class I Shares | | 615 | |
| | Class S Shares | | 56 | |
| | Class T Shares | | 269 | |
| Registration fees | | 102,124 | |
| Shareholder reports expense | | 46,280 | |
| Professional fees | | 37,139 | |
| Custodian fees | | 12,231 | |
| Non-interested Trustees’ fees and expenses | | 4,148 | |
| Other expenses | | 16,404 | |
Total Expenses | | 741,502 | |
Less: Excess Expense Reimbursement and Waivers | | (4,277) | |
Net Expenses | | 737,225 | |
Net Investment Income/(Loss) | | 3,596,758 | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments in affiliates | | 24,212,983 | |
| Capital gain distributions from underlying funds | | 6,118,630 | |
Total Net Realized Gain/(Loss) on Investments | | 30,331,613 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments in affiliates | | 38,168,464 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 38,168,464 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 72,096,835 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Growth
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 3,596,758 | | $ | 3,396,636 | |
| Net realized gain/(loss) on investments | | 30,331,613 | | | 11,311,508 | |
| Change in unrealized net appreciation/depreciation | | 38,168,464 | | | (18,268,623) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 72,096,835 | | | (3,560,479) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (199,483) | | | (330,228) | |
| | Class C Shares | | (178,499) | | | (370,827) | |
| | Class D Shares | | (9,950,738) | | | (14,020,706) | |
| | Class I Shares | | (578,152) | | | (1,015,096) | |
| | Class S Shares | | (54,399) | | | (138,501) | |
| | Class T Shares | | (691,699) | | | (1,108,202) | |
Net Decrease from Dividends and Distributions to Shareholders | | (11,652,970) | | | (16,983,560) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 477,851 | | | (35,722) | |
| | Class C Shares | | (1,483,053) | | | (1,582,438) | |
| | Class D Shares | | (4,723,402) | | | (1,392,955) | |
| | Class I Shares | | 196,598 | | | (2,059,309) | |
| | Class S Shares | | (465,256) | | | (484,332) | |
| | Class T Shares | | (609,017) | | | (1,934,382) | |
Net Increase/(Decrease) from Capital Share Transactions | | (6,606,279) | | | (7,489,138) | |
Net Increase/(Decrease) in Net Assets | | 53,837,586 | | | (28,033,177) | |
Net Assets: | | | | | | |
| Beginning of period | | 222,589,585 | | | 250,622,762 | |
| End of period | $ | 276,427,171 | | $ | 222,589,585 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Allocation Fund - Growth
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.93 | | | $14.05 | | | $14.28 | | | $13.98 | | | $12.71 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.17 | | | 0.15 | | | 0.22 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 4.12 | | | (0.32) | | | 0.27 | | | 0.98 | | | 1.42 | |
| Total from Investment Operations | | 4.30 | | | (0.15) | | | 0.42 | | | 1.20 | | | 1.58 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.18) | | | (0.17) | | | (0.17) | | | (0.27) | | | (0.16) | |
| | Distributions (from capital gains) | | (0.52) | | | (0.80) | | | (0.48) | | | (0.63) | | | (0.15) | |
| Total Dividends and Distributions | | (0.70) | | | (0.97) | | | (0.65) | | | (0.90) | | | (0.31) | |
| Net Asset Value, End of Period | | $16.53 | | | $12.93 | | | $14.05 | | | $14.28 | | | $13.98 | |
| Total Return* | | 33.72% | | | (1.48)% | | | 3.57% | | | 8.58% | | | 12.68% | |
| Net Assets, End of Period (in thousands) | | $6,003 | | | $4,381 | | | $4,845 | | | $4,637 | | | $4,151 | |
| Average Net Assets for the Period (in thousands) | | $4,883 | | | $4,624 | | | $4,564 | | | $4,446 | | | $5,171 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.46% | | | 0.46% | | | 0.46% | | | 0.46% | | | 0.44% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.46% | | | 0.46% | | | 0.46% | | | 0.46% | | | 0.44% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.17% | | | 1.29% | | | 1.07% | | | 1.53% | | | 1.23% | |
| Portfolio Turnover Rate | | 50% | | | 49% | | | 9% | | | 12% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.65 | | | $13.76 | | | $14.00 | | | $13.74 | | | $12.49 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.09 | | | 0.07 | | | 0.05 | | | 0.10 | | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | 4.00 | | | (0.32) | | | 0.27 | | | 0.98 | | | 1.40 | |
| Total from Investment Operations | | 4.09 | | | (0.25) | | | 0.32 | | | 1.08 | | | 1.46 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.06) | | | (0.08) | | | (0.19) | | | (0.06) | |
| | Distributions (from capital gains) | | (0.52) | | | (0.80) | | | (0.48) | | | (0.63) | | | (0.15) | |
| Total Dividends and Distributions | | (0.58) | | | (0.86) | | | (0.56) | | | (0.82) | | | (0.21) | |
| Net Asset Value, End of Period | | $16.16 | | | $12.65 | | | $13.76 | | | $14.00 | | | $13.74 | |
| Total Return* | | 32.77% | | | (2.23)% | | | 2.83% | | | 7.84% | | | 11.94% | |
| Net Assets, End of Period (in thousands) | | $4,096 | | | $4,497 | | | $6,586 | | | $7,166 | | | $4,486 | |
| Average Net Assets for the Period (in thousands) | | $4,340 | | | $5,700 | | | $6,878 | | | $5,467 | | | $4,679 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 1.14% | | | 1.18% | | | 1.20% | | | 1.14% | | | 1.07% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 1.14% | | | 1.18% | | | 1.20% | | | 1.14% | | | 1.07% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 0.64% | | | 0.55% | | | 0.38% | | | 0.69% | | | 0.48% | |
| Portfolio Turnover Rate | | 50% | | | 49% | | | 9% | | | 12% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
| | |
See Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Growth
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.04 | | | $14.17 | | | $14.39 | | | $14.08 | | | $12.80 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.22 | | | 0.20 | | | 0.18 | | | 0.25 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 4.15 | | | (0.33) | | | 0.27 | | | 0.99 | | | 1.44 | |
| Total from Investment Operations | | 4.37 | | | (0.13) | | | 0.45 | | | 1.24 | | | 1.60 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.21) | | | (0.20) | | | (0.19) | | | (0.30) | | | (0.17) | |
| | Distributions (from capital gains) | | (0.52) | | | (0.80) | | | (0.48) | | | (0.63) | | | (0.15) | |
| Total Dividends and Distributions | | (0.73) | | | (1.00) | | | (0.67) | | | (0.93) | | | (0.32) | |
| Net Asset Value, End of Period | | $16.68 | | | $13.04 | | | $14.17 | | | $14.39 | | | $14.08 | |
| Total Return* | | 34.01% | | | (1.37)% | | | 3.77% | | | 8.79% | | | 12.81% | |
| Net Assets, End of Period (in thousands) | | $233,735 | | | $187,295 | | | $205,433 | | | $219,870 | | | $213,929 | |
| Average Net Assets for the Period (in thousands) | | $213,320 | | | $195,360 | | | $205,469 | | | $222,712 | | | $206,525 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.27% | | | 0.28% | | | 0.29% | | | 0.27% | | | 0.28% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.27% | | | 0.28% | | | 0.28% | | | 0.27% | | | 0.28% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.45% | | | 1.46% | | | 1.27% | | | 1.71% | | | 1.22% | |
| Portfolio Turnover Rate | | 50% | | | 49% | | | 9% | | | 12% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.04 | | | $14.16 | | | $14.39 | | | $14.08 | | | $12.80 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.23 | | | 0.22 | | | 0.19 | | | 0.21 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 4.14 | | | (0.33) | | | 0.26 | | | 1.04 | | | 1.45 | |
| Total from Investment Operations | | 4.37 | | | (0.11) | | | 0.45 | | | 1.25 | | | 1.61 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.21) | | | (0.21) | | | (0.20) | | | (0.31) | | | (0.18) | |
| | Distributions (from capital gains) | | (0.52) | | | (0.80) | | | (0.48) | | | (0.63) | | | (0.15) | |
| Total Dividends and Distributions | | (0.73) | | | (1.01) | | | (0.68) | | | (0.94) | | | (0.33) | |
| Net Asset Value, End of Period | | $16.68 | | | $13.04 | | | $14.16 | | | $14.39 | | | $14.08 | |
| Total Return* | | 34.07% | | | (1.24)% | | | 3.80% | | | 8.90% | | | 12.89% | |
| Net Assets, End of Period (in thousands) | | $14,799 | | | $11,548 | | | $14,977 | | | $14,180 | | | $6,052 | |
| Average Net Assets for the Period (in thousands) | | $12,747 | | | $13,319 | | | $15,240 | | | $9,393 | | | $4,925 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.21% | | | 0.22% | | | 0.22% | | | 0.20% | | | 0.20% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.21% | | | 0.22% | | | 0.22% | | | 0.20% | | | 0.20% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.49% | | | 1.59% | | | 1.33% | | | 1.44% | | | 1.22% | |
| Portfolio Turnover Rate | | 50% | | | 49% | | | 9% | | | 12% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Allocation Fund - Growth
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.85 | | | $13.96 | | | $14.20 | | | $13.91 | | | $12.64 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.16 | | | 0.18 | | | 0.13 | | | 0.22 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 4.08 | | | (0.35) | | | 0.26 | | | 0.95 | | | 1.42 | |
| Total from Investment Operations | | 4.24 | | | (0.17) | | | 0.39 | | | 1.17 | | | 1.54 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.14) | | | (0.15) | | | (0.25) | | | (0.12) | |
| | Distributions (from capital gains) | | (0.52) | | | (0.80) | | | (0.48) | | | (0.63) | | | (0.15) | |
| Total Dividends and Distributions | | (0.66) | | | (0.94) | | | (0.63) | | | (0.88) | | | (0.27) | |
| Net Asset Value, End of Period | | $16.43 | | | $12.85 | | | $13.96 | | | $14.20 | | | $13.91 | |
| Total Return* | | 33.45% | | | (1.67)% | | | 3.41% | | | 8.38% | | | 12.44% | |
| Net Assets, End of Period (in thousands) | | $1,408 | | | $1,539 | | | $2,157 | | | $2,034 | | | $2,533 | |
| Average Net Assets for the Period (in thousands) | | $1,325 | | | $1,879 | | | $2,446 | | | $2,398 | | | $2,488 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.62% | | | 0.62% | | | 0.61% | | | 0.65% | | | 0.61% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.62% | | | 0.62% | | | 0.61% | | | 0.64% | | | 0.61% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.05% | | | 1.30% | | | 0.96% | | | 1.53% | | | 0.90% | |
| Portfolio Turnover Rate | | 50% | | | 49% | | | 9% | | | 12% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.02 | | | $14.14 | | | $14.37 | | | $14.06 | | | $12.78 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.21 | | | 0.19 | | | 0.17 | | | 0.24 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 4.14 | | | (0.32) | | | 0.26 | | | 0.99 | | | 1.43 | |
| Total from Investment Operations | | 4.35 | | | (0.13) | | | 0.43 | | | 1.23 | | | 1.59 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.20) | | | (0.19) | | | (0.18) | | | (0.29) | | | (0.16) | |
| | Distributions (from capital gains) | | (0.52) | | | (0.80) | | | (0.48) | | | (0.63) | | | (0.15) | |
| Total Dividends and Distributions | | (0.72) | | | (0.99) | | | (0.66) | | | (0.92) | | | (0.31) | |
| Net Asset Value, End of Period | | $16.65 | | | $13.02 | | | $14.14 | | | $14.37 | | | $14.06 | |
| Total Return* | | 33.88% | | | (1.37)% | | | 3.61% | | | 8.74% | | | 12.77% | |
| Net Assets, End of Period (in thousands) | | $16,385 | | | $13,330 | | | $16,624 | | | $19,131 | | | $18,491 | |
| Average Net Assets for the Period (in thousands) | | $15,199 | | | $15,095 | | | $17,721 | | | $18,582 | | | $17,409 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.37% | | | 0.37% | | | 0.38% | | | 0.37% | | | 0.36% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.34% | | | 0.35% | | | 0.36% | | | 0.34% | | | 0.33% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.37% | | | 1.43% | | | 1.20% | | | 1.63% | | | 1.17% | |
| Portfolio Turnover Rate | | 50% | | | 49% | | | 9% | | | 12% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
| | |
See Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Growth
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Allocation Fund - Growth (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Fund operates as a “fund of funds,” meaning substantially all of the Fund’s assets will be invested in other Janus Henderson funds (the “underlying funds”). The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks total return through a primary emphasis on growth of capital with a secondary emphasis on income. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (“Janus Capital”) or its affiliates to offer Class S Shares on their supermarket platforms.
Janus Henderson Global Allocation Fund - Growth
Notes to Financial Statements
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
Underlying Funds
The Fund invests in a variety of underlying funds to pursue a target allocation of equity investments, fixed-income securities, and alternative investments and may also invest in money market instruments or cash/cash equivalents. The Fund has a target allocation, which is how the Fund's investments generally will be allocated among the major asset classes over the long term, as well as normal ranges, under normal market conditions, within which the Fund's asset class allocations generally will vary over short-term periods. The Fund's long-term expected average asset allocation is as follows: 75% to equity investments, 15% to fixed-income securities and money market instruments, and 10% to alternative investments. Additional details and descriptions of the investment objectives and strategies of each of the underlying funds are available in the Fund’s and underlying funds’ prospectuses available at janushenderson.com. The Trustees of the underlying funds may change the investment objectives or strategies of the underlying funds at any time without prior notice to the Fund’s shareholders.
The following accounting policies have been followed by the Fund and are in conformity with US GAAP.
Investment Valuation
The Fund’s net asset value (“NAV”) is calculated based upon the NAV of each of the underlying funds in which the Fund invests on the day of valuation. The NAV for each class of the underlying funds is computed by dividing the total value of securities and other assets allocated to the class, less liabilities allocated to that class, by the total number of shares outstanding for the class.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
The Fund classifies each of its investments in underlying funds as Level 1, without consideration as to the classification level of the specific investments held by the underlying funds. There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities held by the underlying funds will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and
Janus Henderson Global Allocation Fund - Growth
Notes to Financial Statements
losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Dividend distributions received from the underlying funds are recorded on the ex-dividend date. Upon receipt of the notification from an underlying fund, and subsequent to the ex-dividend date, a part or all of the dividend income originally recorded by the Fund may be reclassified as a tax return of capital by reducing the cost basis of the underlying fund and/or increasing the realized gain on sales of investments in the underlying fund.
Expenses
The Fund bears expenses incurred specifically on its behalf. Additionally, the Fund, as a shareholder in the underlying funds, will also indirectly bear its pro rata share of the expenses incurred by the underlying funds. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The underlying funds may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the underlying funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.05% of its average daily net assets.
Janus Henderson Global Allocation Fund - Growth
Notes to Financial Statements
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any expenses of an underlying fund (acquired fund fees and expenses), the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.14% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2021. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s and the underlying funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or
Janus Henderson Global Allocation Fund - Growth
Notes to Financial Statements
similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”), a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement, and is authorized to perform, or cause others to perform, the administration services necessary for the operation of the Fund. Janus Capital does not receive compensation for serving as administrator and it bears the expenses related to operation of the Fund, such as, but not limited to fund accounting and tax services; shareholder servicing; and preparation of various documents filed with the SEC. The Fund bears costs related to any compensation, fees, or reimbursements paid to Trustees who are independent of Janus Capital; fees and expenses of counsel to the Independent Trustees; fees and expenses of consultants to the Fund; custody fees; audit expenses; brokerage commissions and all other expenses in connection with execution of portfolio transactions; blue sky registration costs; interest; all federal, state and local taxes (including stamp, excise, income, and franchise taxes); expenses of shareholder meetings, including the preparation, printing, and distribution of proxy statements, notices, and reports to shareholders; expenses of printing and mailing to existing shareholders prospectuses, statements of additional information, shareholder reports, and other materials required to be mailed to shareholders by federal or state laws or regulations; transfer agency fees and expenses payable pursuant to a transfer agency agreement between the Trust and Janus Services on behalf of the Fund; any litigation; and other extraordinary expenses. In addition, some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Janus Henderson Global Allocation Fund - Growth
Notes to Financial Statements
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $2,249.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $307.
3. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 2,729,507 | $ 23,580,842 | $ - | $ - | $ - | $ (5,656) | $ 57,699,424 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 218,836,746 | $57,949,255 | $ (249,831) | $ 57,699,424 |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 3,296,153 | $ 8,356,817 | $ - | $ - | |
Janus Henderson Global Allocation Fund - Growth
Notes to Financial Statements
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 3,289,632 | $ 13,693,928 | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ 1,077,783 | $ (115,992) | $ (961,791) |
Capital has been adjusted by $1,077,783, including $878,482 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
4. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 121,575 | $ 1,869,525 | | 55,720 | $ 767,414 |
Reinvested dividends and distributions | 12,689 | 191,983 | | 23,350 | 323,395 |
Shares repurchased | (109,989) | (1,583,657) | | (85,125) | (1,126,531) |
Net Increase/(Decrease) | 24,275 | $ 477,851 | | (6,055) | $ (35,722) |
Class C Shares: | | | | | |
Shares sold | 15,517 | $ 232,566 | | 28,299 | $ 382,832 |
Reinvested dividends and distributions | 12,021 | 178,396 | | 26,832 | 364,921 |
Shares repurchased | (129,690) | (1,894,015) | | (178,300) | (2,330,191) |
Net Increase/(Decrease) | (102,152) | $ (1,483,053) | | (123,169) | $(1,582,438) |
Class D Shares: | | | | | |
Shares sold | 780,983 | $12,174,251 | | 621,258 | $ 8,187,237 |
Reinvested dividends and distributions | 646,015 | 9,851,729 | | 993,236 | 13,865,577 |
Shares repurchased | (1,776,998) | (26,749,382) | | (1,752,931) | (23,445,769) |
Net Increase/(Decrease) | (350,000) | $ (4,723,402) | | (138,437) | $(1,392,955) |
Class I Shares: | | | | | |
Shares sold | 253,162 | $ 3,929,904 | | 230,663 | $ 3,200,129 |
Reinvested dividends and distributions | 37,936 | 578,152 | | 72,767 | 1,015,096 |
Shares repurchased | (289,397) | (4,311,458) | | (475,410) | (6,274,534) |
Net Increase/(Decrease) | 1,701 | $ 196,598 | | (171,980) | $(2,059,309) |
Class S Shares: | | | | | |
Shares sold | 13,068 | $ 195,275 | | 9,319 | $ 125,174 |
Reinvested dividends and distributions | 3,615 | 54,399 | | 10,051 | 138,501 |
Shares repurchased | (50,746) | (714,930) | | (54,170) | (748,007) |
Net Increase/(Decrease) | (34,063) | $ (465,256) | | (34,800) | $ (484,332) |
Class T Shares: | | | | | |
Shares sold | 329,507 | $ 5,025,825 | | 332,538 | $ 4,535,916 |
Reinvested dividends and distributions | 44,915 | 684,055 | | 78,022 | 1,087,633 |
Shares repurchased | (414,145) | (6,318,897) | | (562,090) | (7,557,931) |
Net Increase/(Decrease) | (39,723) | $ (609,017) | | (151,530) | $(1,934,382) |
Janus Henderson Global Allocation Fund - Growth
Notes to Financial Statements
5. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$125,796,736 | $ 134,312,671 | $ - | $ - |
6. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Global Allocation Fund - Growth
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Allocation Fund - Growth
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Global Allocation Fund - Growth (one of the funds constituting Janus Investment Fund, referred to hereafter as the “Fund”) as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Allocation Fund - Growth
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Global Allocation Fund - Growth
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Global Allocation Fund - Growth
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Global Allocation Fund - Growth
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Allocation Fund - Growth
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Global Allocation Fund - Growth
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Global Allocation Fund - Growth
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Global Allocation Fund - Growth
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Global Allocation Fund - Growth
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Global Allocation Fund - Growth
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
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Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Global Allocation Fund - Growth
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
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Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
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The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Global Allocation Fund - Growth
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Global Allocation Fund - Growth
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
| | |
| | |
Capital Gain Distributions | $9,235,299 |
Foreign Taxes Paid | $74,770 |
Foreign Source Income | $162,177 |
Dividends Received Deduction Percentage | 23% |
Qualified Dividend Income Percentage | 34% |
Janus Henderson Global Allocation Fund - Growth
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Global Allocation Fund - Growth
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Allocation Fund - Growth
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Global Allocation Fund - Growth
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Global Allocation Fund - Growth
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Allocation Fund - Growth
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Global Allocation Fund - Growth
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Ashwin Alankar
151 Detroit Street
Denver, CO 80206
DOB: 1974 | Executive Vice President and Portfolio Manager
Janus Henderson Global Allocation Fund – Growth | 9/14-Present | Head of Global Asset Allocation of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. Formerly, Co-Chief Investment Officer of AllianceBernstein’s Tail Risk Parity (2010-2014). |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
Janus Henderson Global Allocation Fund - Growth
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93021 08-21 |
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| | | |
| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson Global Allocation Fund - Moderate |
| | |
| | Janus Investment Fund |
| |
| | | |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Allocation Fund - Moderate
Janus Henderson Global Allocation Fund - Moderate (unaudited)
| | | | | | |
FUND SNAPSHOT This Fund of Funds offers broad global diversification for investors by utilizing the full spectrum of Janus Henderson’s investment expertise and solutions, with the goal of providing higher risk-adjusted returns than the broad markets. | | | | | 
Ashwin Alankar portfolio manager |
| | | |
PERFORMANCE OVERVIEW
Janus Henderson Global Allocation Fund – Moderate’s Class I Shares returned 26.70% for the 12-month period ended June 30, 2021. This compares with a return of 39.27% for its primary benchmark, the MSCI All Country World IndexSM, and a 23.58% return for its secondary benchmark, the Global Moderate Allocation Index, an internally calculated, hypothetical combination of total returns from the MSCI All Country World Index (60%) and the Bloomberg Barclays Global Aggregate Bond Index (40%).
MARKET ENVIRONMENT
Global financial markets rallied during the period, first on the back of extraordinary policy initiatives aimed at dampening the worst effects from the COVID-19 pandemic on the world’s economy, and then on growing optimism that vaccines would gain approval and become widely available. While riskier assets maintained an upward trajectory throughout, safer government bonds gave back some of their gains during the winter as investors began to price in more durable economic growth and with it a rising chance of inflation. As consensus coalesced around the spring spike in inflation being transitory, bonds reversed course, sending rates once again lower. The rally in riskier assets, meanwhile, continued, with global equities finishing the period near record highs.
PERFORMANCE DISCUSSION
Janus Henderson Global Allocation Fund – Moderate invests across a broad set of Janus Henderson funds that span a wide range of global asset categories with a base allocation of 45% to 65% equity investments, 30% to 45% fixed income investments and 5% to 20% alternative investments (to the extent these are available) that are monitored and rebalanced continually. The Fund is structured as a “fund of funds” portfolio that provides investors with broad, diversified exposure to various types of investments with an emphasis on managing investment risk.
Contributing to returns were the Janus Henderson Contrarian Fund and the Janus Henderson Emerging Markets Fund. The former performed well given its underweight to sectors that vastly underperformed the market during the period. A key driver of the Janus Henderson Emerging Markets Fund was these regions’ mid-period outperformance as major north Asian economies recovered more rapidly from the depths of the pandemic than did other parts of the world. Detracting from performance were the Janus Henderson Small-Mid Cap Value Fund and the Janus Henderson Global Equity Income Fund as these equity segments were unable to keep up with the large-cap growth companies that drove markets higher during the period.
OUTLOOK
At a high level, the latter months of the period were smooth sailing for capital markets. The resilience of equities continued and U.S. Treasuries took a pause from their recent sell-off. The yield on 10-year notes fell by roughly 30 basis points over the final quarter.
Yet under this “calmness,” there were many gyrations. These were a reflection of the battle between the market and the Federal Reserve (Fed) – and even within the Fed – on the future course of inflation and growth and whether the time is coming for liquidity conditions to normalize and the central bank to step back from high levels of accommodation. This led to violent fluctuations in the performance of growth versus value stocks. At times, we saw value considerably outperform growth and growth outperform value at others.
Sharp moves also unfolded in the Treasury markets as inflation fears sent yields higher, only to reverse on Fed rhetoric echoing their confidence that inflation will be transitory and economic damage from the pandemic is still far-reaching, thus, requiring stimulus for many more years. While the tug-of-war continues, capital markets sided with
Janus Henderson Global Allocation Fund - Moderate (unaudited)
the Fed by the end of the quarter; the Fed’s reassurance that stimulus is not going away anytime soon sent equities to higher highs and quelled the sell-off in yields.
Thank you for investing in Janus Henderson Global Allocation Fund – Moderate.
Janus Henderson Global Allocation Fund - Moderate (unaudited)
Fund At A Glance
June 30, 2021
| | | | |
Holdings - (% of Net Assets) | | | |
Janus Henderson Global Bond Fund - Class N Shares | | 20.1 | % |
Janus Henderson Multi-Sector Income Fund - Class N Shares | | 8.6 | |
Janus Henderson Emerging Markets Fund - Class N Shares | | 7.6 | |
Janus Henderson Enterprise Fund - Class N Shares | | 6.1 | |
Janus Henderson Triton Fund - Class N Shares | | 6.1 | |
Janus Henderson Contrarian Fund - Class N Shares | | 5.5 | |
Janus Henderson Forty Fund - Class N Shares | | 5.5 | |
Janus Henderson Adaptive Global Allocation Fund - Class N Shares | | 5.2 | |
Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 4.7 | |
Janus Henderson Overseas Fund - Class N Shares | | 4.4 | |
Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | 4.4 | |
Janus Henderson Flexible Bond Fund - Class N Shares | | 3.5 | |
Janus Henderson Global Real Estate Fund - Class N Shares | | 3.2 | |
Janus Henderson Global Select Fund - Class N Shares | | 3.1 | |
Janus Henderson International Managed Volatility Fund - Class N Shares | | 3.1 | |
Janus Henderson Global Research Fund - Class N Shares | | 2.9 | |
Janus Henderson Global Equity Income Fund - Class N Shares | | 2.6 | |
Janus Henderson Asia Equity Fund - Class N Shares | | 2.3 | |
Janus Henderson European Focus Fund - Class N Shares | | 1.1 | |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Equity Funds | | 67.8% | |
Fixed Income Funds | | 32.2% | |
Other | | (0.0)% |
| | | 100.0% |
Janus Henderson Global Allocation Fund - Moderate (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 26.47% | 8.92% | 6.77% | 6.80% | | | 1.09% | 1.09% |
Class A Shares at MOP | | 19.20% | 7.64% | 6.14% | 6.40% | | | | |
Class C Shares at NAV | | 25.56% | 8.16% | 6.04% | 6.05% | | | 1.89% | 1.89% |
Class C Shares at CDSC | | 24.56% | 8.16% | 6.04% | 6.05% | | | | |
Class D Shares | | 26.70% | 9.13% | 6.96% | 7.00% | | | 0.95% | 0.94% |
Class I Shares | | 26.70% | 9.16% | 7.02% | 7.04% | | | 0.89% | 0.89% |
Class S Shares | | 26.20% | 8.73% | 6.59% | 6.59% | | | 1.30% | 1.30% |
Class T Shares | | 26.60% | 9.04% | 6.90% | 6.94% | | | 1.05% | 1.05% |
MSCI All Country World Index | | 39.27% | 14.61% | 9.90% | 7.76% | | | | |
Global Moderate Allocation Index | | 23.58% | 9.80% | 6.92% | 6.42% | | | | |
Morningstar Quartile - Class T Shares | | 2nd | 2nd | 2nd | 1st | | | | |
Morningstar Ranking - based on total returns for World Allocation Funds | | 193/468 | 122/419 | 124/326 | 53/217 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different
Janus Henderson Global Allocation Fund - Moderate (unaudited)
Performance
risks. Please see the prospectus for more information about risks, holdings and other details.
Performance of the Global Allocation Funds depends on that of the underlying funds. They are subject to the volatility of the financial markets. Because Janus Capital Management is the adviser to the Fund and to the underlying affiliated funds held within the Fund, it is subject to certain potential conflicts of interest.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective share class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s 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 each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – December 30, 2005
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Allocation Fund - Moderate (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21)†† |
Class A Shares | $1,000.00 | $1,065.90 | $2.20 | | $1,000.00 | $1,022.66 | $2.16 | 0.43% |
Class C Shares | $1,000.00 | $1,063.00 | $5.42 | | $1,000.00 | $1,019.54 | $5.31 | 1.06% |
Class D Shares | $1,000.00 | $1,067.60 | $1.23 | | $1,000.00 | $1,023.60 | $1.20 | 0.24% |
Class I Shares | $1,000.00 | $1,067.70 | $1.08 | | $1,000.00 | $1,023.75 | $1.05 | 0.21% |
Class S Shares | $1,000.00 | $1,065.70 | $3.12 | | $1,000.00 | $1,021.77 | $3.06 | 0.61% |
Class T Shares | $1,000.00 | $1,067.00 | $1.69 | | $1,000.00 | $1,023.16 | $1.66 | 0.33% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
†† | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
Janus Henderson Global Allocation Fund - Moderate
Schedule of Investments
June 30, 2021
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Shares
| | | Value | |
Investment Companies£– 100.0% | | | |
Equity Funds – 67.8% | | | |
| | Janus Henderson Adaptive Global Allocation Fund - Class N Shares | | 1,117,139 | | | $13,349,800 | |
| | Janus Henderson Asia Equity Fund - Class N Shares | | 414,495 | | | 5,960,424 | |
| | Janus Henderson Contrarian Fund - Class N Shares | | 445,607 | | | 14,125,732 | |
| | Janus Henderson Emerging Markets Fund - Class N Shares | | 1,479,115 | | | 19,450,827 | |
| | Janus Henderson Enterprise Fund - Class N Shares | | 89,637 | | | 15,630,870 | |
| | Janus Henderson European Focus Fund - Class N Shares | | 66,503 | | | 2,918,164 | |
| | Janus Henderson Forty Fund - Class N Shares | | 240,618 | | | 14,068,916 | |
| | Janus Henderson Global Equity Income Fund - Class N Shares | | 953,860 | | | 6,524,368 | |
| | Janus Henderson Global Real Estate Fund - Class N Shares | | 547,625 | | | 8,192,442 | |
| | Janus Henderson Global Research Fund - Class N Shares | | 67,099 | | | 7,362,080 | |
| | Janus Henderson Global Select Fund - Class N Shares | | 391,633 | | | 7,805,251 | |
| | Janus Henderson International Managed Volatility Fund - Class N Shares | | 824,041 | | | 7,803,661 | |
| | Janus Henderson Overseas Fund - Class N Shares | | 256,723 | | | 11,321,456 | |
| | Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | 797,267 | | | 11,233,448 | |
| | Janus Henderson Triton Fund - Class N Shares | | 374,638 | | | 15,476,296 | |
| | Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 947,553 | | | 12,033,925 | |
| | | 173,257,660 | |
Fixed Income Funds – 32.2% | | | |
| | Janus Henderson Flexible Bond Fund - Class N Shares | | 820,238 | | | 9,145,654 | |
| | Janus Henderson Global Bond Fund - Class N Shares | | 5,099,944 | | | 51,305,436 | |
| | Janus Henderson Multi-Sector Income Fund - Class N Shares | | 2,169,496 | | | 21,973,931 | |
| | | 82,425,021 | |
Total Investments (total cost $209,679,680) – 100.0% | | 255,682,681 | |
Liabilities, net of Cash, Receivables and Other Assets – (0)% | | (101,838) | |
Net Assets – 100% | | $255,580,843 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Allocation Fund - Moderate
Schedule of Investments
June 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Capital Gain Distributions from Underlying Funds(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 6/30/21 |
Investment Companies - 100.0% |
Equity Funds - 67.8% |
| | Janus Henderson Adaptive Global Allocation Fund - Class N Shares | $ | 363,066 | $ | 71,945 | $ | - | $ | 2,212,163 | $ | 13,349,800 |
| | Janus Henderson Asia Equity Fund - Class N Shares | | 7,299 | | 34,918 | | - | | 1,200,645 | | 5,960,424 |
| | Janus Henderson Contrarian Fund - Class N Shares | | 120,523 | | 753,252 | | 114,026 | | 4,252,418 | | 14,125,732 |
| | Janus Henderson Emerging Markets Fund - Class N Shares | | 143,872 | | 71,724 | | - | | 4,744,480 | | 19,450,827 |
| | Janus Henderson Enterprise Fund - Class N Shares | | 53,545 | | 1,172,903 | | 1,042,104 | | 1,886,415 | | 15,630,870 |
| | Janus Henderson European Focus Fund - Class N Shares | | 5,509 | | 120,743 | | - | | 420,406 | | 2,918,164 |
| | Janus Henderson Forty Fund - Class N Shares | | 18,361 | | 963,532 | | 837,079 | | 2,293,526 | | 14,068,916 |
| | Janus Henderson Global Equity Income Fund - Class N Shares | | 176,622 | | 23 | | - | | (111,634) | | 6,524,368 |
| | Janus Henderson Global Real Estate Fund - Class N Shares | | 82,028 | | (6,146) | | - | | 1,295,960 | | 8,192,442 |
| | Janus Henderson Global Research Fund - Class N Shares | | 38,199 | | 738,532 | | 244,554 | | 1,035,319 | | 7,362,080 |
| | Janus Henderson Global Select Fund - Class N Shares | | 127,365 | | 168,222 | | 251,001 | | 2,203,521 | | 7,805,251 |
| | Janus Henderson International Managed Volatility Fund - Class N Shares | | - | | 86,494 | | 74,551 | | 535,764 | | 7,803,661 |
| | Janus Henderson International Value Fund - Class N Shares | | 134,911 | | 539,681 | | - | | 1,173,808 | | - |
| | Janus Henderson Large Cap Value Fund - Class N Shares | | 255,986 | | 3,168,308 | | 352,830 | | (270,864) | | - |
| | Janus Henderson Mid Cap Value Fund - Class N Shares | | 128,350 | | 1,483,019 | | - | | 1,257,224 | | - |
| | Janus Henderson Overseas Fund - Class N Shares | | 54,652 | | 987,631 | | - | | 1,703,136 | | 11,321,456 |
| | Janus Henderson Small Cap Value Fund - Class N Shares | | 103,772 | | 2,688,549 | | - | | (26,686) | | - |
| | Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | - | | (186) | | - | | (64,005) | | 11,233,448 |
| | Janus Henderson Triton Fund - Class N Shares | | 28,585 | | 2,717,621 | | 546,162 | | 1,283,985 | | 15,476,296 |
| | Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 481,132 | | 275,659 | | 711,442 | | 927,050 | | 12,033,925 |
Total Equity Funds | $ | 2,323,777 | $ | 16,036,424 | $ | 4,173,749 | $ | 27,952,631 | $ | 173,257,660 |
Fixed Income Funds - 32.2% |
| | Janus Henderson Flexible Bond Fund - Class N Shares | | 243,601 | | 279,282 | | - | | (219,677) | | 9,145,654 |
| | Janus Henderson Global Bond Fund - Class N Shares | | 1,433,362 | | 633,851 | | 425,012 | | (771,122) | | 51,305,436 |
| | Janus Henderson Multi-Sector Income Fund - Class N Shares | | 882,654 | | 29,137 | | - | | 1,214,103 | | 21,973,931 |
Total Fixed Income Funds | $ | 2,559,617 | $ | 942,270 | $ | 425,012 | $ | 223,304 | $ | 82,425,021 |
Total Affiliated Investments - 100.0% | $ | 4,883,394 | $ | 16,978,694 | $ | 4,598,761 | $ | 28,175,935 | $ | 255,682,681 |
(1) For securities that were affiliated for a portion of the year ended June 30, 2021, this column reflects amounts for the entire year ended June 30, 2021 and not just the period in which the security was affiliated.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Moderate
Schedule of Investments
June 30, 2021
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 100.0% |
Equity Funds - 67.8% | |
| | Janus Henderson Adaptive Global Allocation Fund - Class N Shares | | 10,881,356 | | 1,198,345 | | (1,014,009) | | 13,349,800 |
| | Janus Henderson Asia Equity Fund - Class N Shares | | 3,678,761 | | 1,416,202 | | (370,102) | | 5,960,424 |
| | Janus Henderson Contrarian Fund - Class N Shares | | 8,114,612 | | 5,068,743 | | (4,063,293) | | 14,125,732 |
| | Janus Henderson Emerging Markets Fund - Class N Shares | | 10,296,961 | | 5,446,133 | | (1,108,471) | | 19,450,827 |
| | Janus Henderson Enterprise Fund - Class N Shares | | 9,605,504 | | 7,140,897 | | (4,174,849) | | 15,630,870 |
| | Janus Henderson European Focus Fund - Class N Shares | | 572,788 | | 2,329,454 | | (525,227) | | 2,918,164 |
| | Janus Henderson Forty Fund - Class N Shares | | 9,629,828 | | 3,954,913 | | (2,772,883) | | 14,068,916 |
| | Janus Henderson Global Equity Income Fund - Class N Shares | | - | | 6,676,017 | | (40,038) | | 6,524,368 |
| | Janus Henderson Global Real Estate Fund - Class N Shares | | 3,593,225 | | 3,654,789 | | (345,386) | | 8,192,442 |
| | Janus Henderson Global Research Fund - Class N Shares | | 2,126,642 | | 5,007,764 | | (1,546,177) | | 7,362,080 |
| | Janus Henderson Global Select Fund - Class N Shares | | 6,064,905 | | 742,639 | | (1,374,036) | | 7,805,251 |
| | Janus Henderson International Managed Volatility Fund - Class N Shares | | 3,332,659 | | 4,392,996 | | (544,252) | | 7,803,661 |
| | Janus Henderson International Value Fund - Class N Shares | | 6,113,040 | | 427,807 | | (8,254,336) | | - |
| | Janus Henderson Large Cap Value Fund - Class N Shares | | 9,299,029 | | 918,831 | | (13,115,304) | | - |
| | Janus Henderson Mid Cap Value Fund - Class N Shares | | 7,136,371 | | 2,371,817 | | (12,248,431) | | - |
| | Janus Henderson Overseas Fund - Class N Shares | | 10,104,528 | | 5,080,672 | | (6,554,511) | | 11,321,456 |
| | Janus Henderson Small Cap Value Fund - Class N Shares | | 7,036,158 | | 720,565 | | (10,418,586) | | - |
| | Janus Henderson Small-Mid Cap Value Fund - Class N Shares | | - | | 11,367,877 | | (70,238) | | 11,233,448 |
| | Janus Henderson Triton Fund - Class N Shares | | 8,504,099 | | 8,618,451 | | (5,647,860) | | 15,476,296 |
| | Janus Henderson U.S. Managed Volatility Fund - Class N Shares | | 9,703,953 | | 3,102,744 | | (1,975,481) | | 12,033,925 |
Fixed Income Funds - 32.2% | |
| | Janus Henderson Flexible Bond Fund - Class N Shares | | 12,172,250 | | 710,547 | | (3,796,748) | | 9,145,654 |
| | Janus Henderson Global Bond Fund - Class N Shares | | 55,280,847 | | 7,787,674 | | (11,625,814) | | 51,305,436 |
| | Janus Henderson Multi-Sector Income Fund - Class N Shares | | 17,357,302 | | 6,924,009 | | (3,550,620) | | 21,973,931 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Allocation Fund - Moderate
Notes to Schedule of Investments and Other Information
| | |
Bloomberg Barclays Global Aggregate Bond Index | Bloomberg Barclays Global Aggregate Bond Index is a broad-based measure of the global investment grade fixed-rate debt markets. |
Global Moderate Allocation Index | Global Moderate Allocation Index is an internally-calculated, hypothetical combination of total returns from the MSCI All Country World IndexSM (60%) and the Bloomberg Barclays Global Aggregate Bond Index (40%). |
MSCI All Country World IndexSM | MSCI All Country World IndexSM reflects the equity market performance of global developed and emerging markets. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Investment Companies | | | | | | |
Equity Funds | $ | 173,257,660 | $ | - | $ | - |
Fixed Income Funds | | 82,425,021 | | - | | - |
Total Assets | $ | 255,682,681 | $ | - | $ | - |
| | | | | | | |
Janus Henderson Global Allocation Fund - Moderate
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Affiliated investments, at value (cost $209,679,680) | | $ | 255,682,681 | |
| Non-interested Trustees' deferred compensation | | | 6,230 | |
| Receivables: | | | | |
| | Dividends | | | 371,313 | |
| | Fund shares sold | | | 120,924 | |
| | Investments sold | | | 24,129 | |
| Other assets | | | 219 | |
Total Assets | | | 256,205,496 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Investments purchased | | | 371,302 | |
| | Fund shares repurchased | | | 112,638 | |
| | Professional fees | | | 38,125 | |
| | Registration fees | | | 32,138 | |
| | Transfer agent fees and expenses | | | 30,723 | |
| | Non-interested Trustees' deferred compensation fees | | | 6,230 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 5,522 | |
| | Advisory fees | | | 3,494 | |
| | Custodian fees | | | 1,766 | |
| | Non-interested Trustees' fees and expenses | | | 925 | |
| | Accrued expenses and other payables | | | 21,790 | |
Total Liabilities | | | 624,653 | |
Net Assets | | $ | 255,580,843 | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 191,831,843 | |
| Total distributable earnings (loss) | | | 63,749,000 | |
Total Net Assets | | $ | 255,580,843 | |
Net Assets - Class A Shares | | $ | 14,022,972 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 942,341 | |
Net Asset Value Per Share(1) | | $ | 14.88 | |
Maximum Offering Price Per Share(2) | | $ | 15.79 | |
Net Assets - Class C Shares | | $ | 2,854,466 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 194,704 | |
Net Asset Value Per Share(1) | | $ | 14.66 | |
Net Assets - Class D Shares | | $ | 213,724,483 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 14,256,572 | |
Net Asset Value Per Share | | $ | 14.99 | |
Net Assets - Class I Shares | | $ | 6,744,406 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 450,355 | |
Net Asset Value Per Share | | $ | 14.98 | |
Net Assets - Class S Shares | | $ | 1,385,220 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 93,902 | |
Net Asset Value Per Share | | $ | 14.75 | |
Net Assets - Class T Shares | | $ | 16,849,296 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,127,584 | |
Net Asset Value Per Share | | $ | 14.94 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Allocation Fund - Moderate
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends from affiliates | $ | 4,883,394 | |
Total Investment Income | | 4,883,394 | |
Expenses: | | | |
| Advisory fees | | 117,243 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 27,874 | |
| | Class C Shares | | 31,711 | |
| | Class S Shares | | 3,383 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 225,678 | |
| | Class S Shares | | 3,394 | |
| | Class T Shares | | 38,790 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 5,831 | |
| | Class C Shares | | 2,677 | |
| | Class I Shares | | 4,659 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 704 | |
| | Class C Shares | | 194 | |
| | Class D Shares | | 29,280 | |
| | Class I Shares | | 287 | |
| | Class S Shares | | 36 | |
| | Class T Shares | | 243 | |
| Registration fees | | 100,290 | |
| Shareholder reports expense | | 38,880 | |
| Professional fees | | 37,122 | |
| Custodian fees | | 11,912 | |
| Non-interested Trustees’ fees and expenses | | 3,858 | |
| Other expenses | | 16,229 | |
Total Expenses | | 700,275 | |
Less: Excess Expense Reimbursement and Waivers | | (51,713) | |
Net Expenses | | 648,562 | |
Net Investment Income/(Loss) | | 4,234,832 | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments in affiliates | | 16,978,694 | |
| Capital gain distributions from underlying funds | | 4,598,761 | |
Total Net Realized Gain/(Loss) on Investments | | 21,577,455 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments in affiliates | | 28,175,935 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 28,175,935 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 53,988,222 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Moderate
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 4,234,832 | | $ | 3,057,838 | |
| Net realized gain/(loss) on investments | | 21,577,455 | | | 8,091,089 | |
| Change in unrealized net appreciation/depreciation | | 28,175,935 | | | (10,332,519) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 53,988,222 | | | 816,408 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (436,945) | | | (534,028) | |
| | Class C Shares | | (145,569) | | | (253,266) | |
| | Class D Shares | | (8,667,975) | | | (10,744,813) | |
| | Class I Shares | | (232,730) | | | (295,660) | |
| | Class S Shares | | (57,459) | | | (122,172) | |
| | Class T Shares | | (667,809) | | | (882,583) | |
Net Decrease from Dividends and Distributions to Shareholders | | (10,208,487) | | | (12,832,522) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 3,904,630 | | | (635,056) | |
| | Class C Shares | | (2,269,728) | | | (1,561,395) | |
| | Class D Shares | | (1,367,160) | | | (8,909,040) | |
| | Class I Shares | | 1,161,673 | | | (723,000) | |
| | Class S Shares | | (118,615) | | | (864,798) | |
| | Class T Shares | | (36,714) | | | (2,093,162) | |
Net Increase/(Decrease) from Capital Share Transactions | | 1,274,086 | | | (14,786,451) | |
Net Increase/(Decrease) in Net Assets | | 45,053,821 | | | (26,802,565) | |
Net Assets: | | | | | | |
| Beginning of period | | 210,527,022 | | | 237,329,587 | |
| End of period | $ | 255,580,843 | | $ | 210,527,022 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Allocation Fund - Moderate
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.29 | | | $12.90 | | | $13.07 | | | $13.14 | | | $12.20 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.22 | | | 0.16 | | | 0.09 | | | 0.18 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 2.98 | | | (0.06) | | | 0.28 | | | 0.67 | | | 1.01 | |
| Total from Investment Operations | | 3.20 | | | 0.10 | | | 0.37 | | | 0.85 | | | 1.13 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.22) | | | (0.14) | | | (0.10) | | | (0.21) | | | (0.11) | |
| | Distributions (from capital gains) | | (0.39) | | | (0.57) | | | (0.44) | | | (0.71) | | | (0.08) | |
| Total Dividends and Distributions | | (0.61) | | | (0.71) | | | (0.54) | | | (0.92) | | | (0.19) | |
| Net Asset Value, End of Period | | $14.88 | | | $12.29 | | | $12.90 | | | $13.07 | | | $13.14 | |
| Total Return* | | 26.39% | | | 0.60% | | | 3.32% | | | 6.53% | | | 9.47% | |
| Net Assets, End of Period (in thousands) | | $14,023 | | | $8,165 | | | $9,529 | | | $10,021 | | | $10,563 | |
| Average Net Assets for the Period (in thousands) | | $11,150 | | | $9,063 | | | $9,899 | | | $10,557 | | | $12,118 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.43% | | | 0.41% | | | 0.45% | | | 0.46% | | | 0.44% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.43% | | | 0.41% | | | 0.45% | | | 0.46% | | | 0.44% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.56% | | | 1.29% | | | 0.68% | | | 1.34% | | | 0.93% | |
| Portfolio Turnover Rate | | 41% | | | 51% | | | 6% | | | 14% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.11 | | | $12.70 | | | $12.86 | | | $12.95 | | | $12.02 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.16 | | | 0.06 | | | 0.01 | | | 0.10 | | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | 2.88 | | | (0.05) | | | 0.27 | | | 0.64 | | | 1.01 | |
| Total from Investment Operations | | 3.04 | | | 0.01 | | | 0.28 | | | 0.74 | | | 1.04 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.10) | | | (0.03) | | | —(3) | | | (0.12) | | | (0.03) | |
| | Distributions (from capital gains) | | (0.39) | | | (0.57) | | | (0.44) | | | (0.71) | | | (0.08) | |
| Total Dividends and Distributions | | (0.49) | | | (0.60) | | | (0.44) | | | (0.83) | | | (0.11) | |
| Net Asset Value, End of Period | | $14.66 | | | $12.11 | | | $12.70 | | | $12.86 | | | $12.95 | |
| Total Return* | | 25.39% | | | (0.06)% | | | 2.57% | | | 5.74% | | | 8.77% | |
| Net Assets, End of Period (in thousands) | | $2,854 | | | $4,381 | | | $6,211 | | | $7,341 | | | $8,036 | |
| Average Net Assets for the Period (in thousands) | | $3,487 | | | $5,235 | | | $6,648 | | | $8,036 | | | $8,504 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 1.12% | | | 1.18% | | | 1.14% | | | 1.13% | | | 1.10% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 1.11% | | | 1.18% | | | 1.14% | | | 1.13% | | | 1.10% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.17% | | | 0.45% | | | 0.08% | | | 0.73% | | | 0.25% | |
| Portfolio Turnover Rate | | 41% | | | 51% | | | 6% | | | 14% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Moderate
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.38 | | | $12.98 | | | $13.16 | | | $13.22 | | | $12.28 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.26 | | | 0.18 | | | 0.11 | | | 0.21 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 2.98 | | | (0.05) | | | 0.28 | | | 0.68 | | | 1.02 | |
| Total from Investment Operations | | 3.24 | | | 0.13 | | | 0.39 | | | 0.89 | | | 1.16 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.24) | | | (0.16) | | | (0.13) | | | (0.24) | | | (0.14) | |
| | Distributions (from capital gains) | | (0.39) | | | (0.57) | | | (0.44) | | | (0.71) | | | (0.08) | |
| Total Dividends and Distributions | | (0.63) | | | (0.73) | | | (0.57) | | | (0.95) | | | (0.22) | |
| Net Asset Value, End of Period | | $14.99 | | | $12.38 | | | $12.98 | | | $13.16 | | | $13.22 | |
| Total Return* | | 26.53% | | | 0.84% | | | 3.44% | | | 6.77% | | | 9.67% | |
| Net Assets, End of Period (in thousands) | | $213,724 | | | $178,202 | | | $196,873 | | | $212,763 | | | $212,552 | |
| Average Net Assets for the Period (in thousands) | | $197,314 | | | $187,271 | | | $199,360 | | | $218,363 | | | $214,793 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.27% | | | 0.27% | | | 0.29% | | | 0.27% | | | 0.26% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.25% | | | 0.26% | | | 0.26% | | | 0.26% | | | 0.26% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.84% | | | 1.40% | | | 0.88% | | | 1.56% | | | 1.09% | |
| Portfolio Turnover Rate | | 41% | | | 51% | | | 6% | | | 14% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.37 | | | $12.97 | | | $13.15 | | | $13.22 | | | $12.28 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.25 | | | 0.19 | | | 0.11 | | | 0.20 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | 3.00 | | | (0.05) | | | 0.29 | | | 0.69 | | | 1.02 | |
| Total from Investment Operations | | 3.25 | | | 0.14 | | | 0.40 | | | 0.89 | | | 1.17 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.17) | | | (0.14) | | | (0.25) | | | (0.15) | |
| | Distributions (from capital gains) | | (0.39) | | | (0.57) | | | (0.44) | | | (0.71) | | | (0.08) | |
| Total Dividends and Distributions | | (0.64) | | | (0.74) | | | (0.58) | | | (0.96) | | | (0.23) | |
| Net Asset Value, End of Period | | $14.98 | | | $12.37 | | | $12.97 | | | $13.15 | | | $13.22 | |
| Total Return* | | 26.62% | | | 0.88% | | | 3.53% | | | 6.77% | | | 9.73% | |
| Net Assets, End of Period (in thousands) | | $6,744 | | | $4,551 | | | $5,533 | | | $6,856 | | | $4,457 | |
| Average Net Assets for the Period (in thousands) | | $5,660 | | | $4,907 | | | $5,905 | | | $5,072 | | | $4,244 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.21% | | | 0.21% | | | 0.22% | | | 0.21% | | | 0.21% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.21% | | | 0.21% | | | 0.22% | | | 0.20% | | | 0.21% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.81% | | | 1.47% | | | 0.85% | | | 1.50% | | | 1.19% | |
| Portfolio Turnover Rate | | 41% | | | 51% | | | 6% | | | 14% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
| | |
See Notes to Financial Statements. |
| |
| | 15 |
Janus Henderson Global Allocation Fund - Moderate
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.19 | | | $12.79 | | | $12.97 | | | $13.05 | | | $12.12 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.21 | | | 0.15 | | | 0.06 | | | 0.16 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | 2.93 | | | (0.07) | | | 0.29 | | | 0.66 | | | 1.02 | |
| Total from Investment Operations | | 3.14 | | | 0.08 | | | 0.35 | | | 0.82 | | | 1.11 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.19) | | | (0.11) | | | (0.09) | | | (0.19) | | | (0.10) | |
| | Distributions (from capital gains) | | (0.39) | | | (0.57) | | | (0.44) | | | (0.71) | | | (0.08) | |
| Total Dividends and Distributions | | (0.58) | | | (0.68) | | | (0.53) | | | (0.90) | | | (0.18) | |
| Net Asset Value, End of Period | | $14.75 | | | $12.19 | | | $12.79 | | | $12.97 | | | $13.05 | |
| Total Return* | | 26.03% | | | 0.47% | | | 3.14% | | | 6.31% | | | 9.30% | |
| Net Assets, End of Period (in thousands) | | $1,385 | | | $1,247 | | | $2,217 | | | $2,695 | | | $2,821 | |
| Average Net Assets for the Period (in thousands) | | $1,358 | | | $1,929 | | | $2,482 | | | $2,722 | | | $2,702 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.62% | | | 0.62% | | | 0.60% | | | 0.64% | | | 0.61% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.62% | | | 0.62% | | | 0.60% | | | 0.62% | | | 0.60% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.51% | | | 1.17% | | | 0.51% | | | 1.17% | | | 0.72% | |
| Portfolio Turnover Rate | | 41% | | | 51% | | | 6% | | | 14% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.34 | | | $12.94 | | | $13.12 | | | $13.19 | | | $12.25 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.24 | | | 0.16 | | | 0.10 | | | 0.21 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | 2.98 | | | (0.04) | | | 0.28 | | | 0.66 | | | 1.02 | |
| Total from Investment Operations | | 3.22 | | | 0.12 | | | 0.38 | | | 0.87 | | | 1.15 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.23) | | | (0.15) | | | (0.12) | | | (0.23) | | | (0.13) | |
| | Distributions (from capital gains) | | (0.39) | | | (0.57) | | | (0.44) | | | (0.71) | | | (0.08) | |
| Total Dividends and Distributions | | (0.62) | | | (0.72) | | | (0.56) | | | (0.94) | | | (0.21) | |
| Net Asset Value, End of Period | | $14.94 | | | $12.34 | | | $12.94 | | | $13.12 | | | $13.19 | |
| Total Return* | | 26.43% | | | 0.76% | | | 3.38% | | | 6.64% | | | 9.60% | |
| Net Assets, End of Period (in thousands) | | $16,849 | | | $13,981 | | | $16,966 | | | $17,735 | | | $18,793 | |
| Average Net Assets for the Period (in thousands) | | $15,516 | | | $15,728 | | | $17,106 | | | $18,214 | | | $19,231 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses(2) | | 0.37% | | | 0.37% | | | 0.38% | | | 0.37% | | | 0.36% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets)(2) | | 0.32% | | | 0.34% | | | 0.34% | | | 0.33% | | | 0.32% | |
| | Ratio of Net Investment Income/(Loss)(2) | | 1.76% | | | 1.29% | | | 0.79% | | | 1.50% | | | 1.03% | |
| Portfolio Turnover Rate | | 41% | | | 51% | | | 6% | | | 14% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
| | |
See Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Global Allocation Fund - Moderate
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Allocation Fund - Moderate (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Fund operates as a “fund of funds,” meaning substantially all of the Fund’s assets will be invested in other Janus Henderson funds (the “underlying funds”). The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks total return through growth of capital and income. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (“Janus Capital”) or its affiliates to offer Class S Shares on their supermarket platforms.
Janus Henderson Global Allocation Fund - Moderate
Notes to Financial Statements
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
Underlying Funds
The Fund invests in a variety of underlying funds to pursue a target allocation of equity investments, fixed-income securities, and alternative investments and may also invest in money market instruments or cash/cash equivalents. The Fund has a target allocation, which is how the Fund's investments generally will be allocated among the major asset classes over the long term, as well as normal ranges, under normal market conditions, within which the Fund's asset class allocations generally will vary over short-term periods. The Fund's long-term expected average asset allocation is as follows: 55% to equity investments, 35% to fixed-income securities and money market instruments, and 10% to alternative investments. Additional details and descriptions of the investment objectives and strategies of each of the underlying funds are available in the Fund’s and underlying funds’ prospectuses available at janushenderson.com. The Trustees of the underlying funds may change the investment objectives or strategies of the underlying funds at any time without prior notice to the Fund’s shareholders.
The following accounting policies have been followed by the Fund and are in conformity with US GAAP.
Investment Valuation
The Fund’s net asset value (“NAV”) is calculated based upon the NAV of each of the underlying funds in which the Fund invests on the day of valuation. The NAV for each class of the underlying funds is computed by dividing the total value of securities and other assets allocated to the class, less liabilities allocated to that class, by the total number of shares outstanding for the class.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
The Fund classifies each of its investments in underlying funds as Level 1, without consideration as to the classification level of the specific investments held by the underlying funds. There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities held by the underlying funds will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and
Janus Henderson Global Allocation Fund - Moderate
Notes to Financial Statements
losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Dividend distributions received from the underlying funds are recorded on the ex-dividend date. Upon receipt of the notification from an underlying fund, and subsequent to the ex-dividend date, a part or all of the dividend income originally recorded by the Fund may be reclassified as a tax return of capital by reducing the cost basis of the underlying fund and/or increasing the realized gain on sales of investments in the underlying fund.
Expenses
The Fund bears expenses incurred specifically on its behalf. Additionally, the Fund, as a shareholder in the underlying funds, will also indirectly bear its pro rata share of the expenses incurred by the underlying funds. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The underlying funds may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the underlying funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.05% of its average daily net assets.
Janus Henderson Global Allocation Fund - Moderate
Notes to Financial Statements
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any expenses of an underlying fund (acquired fund fees and expenses), the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.12% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s and the underlying funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or
Janus Henderson Global Allocation Fund - Moderate
Notes to Financial Statements
similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”), a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement, and is authorized to perform, or cause others to perform, the administration services necessary for the operation of the Fund. Janus Capital does not receive compensation for serving as administrator and it bears the expenses related to operation of the Fund, such as, but not limited to fund accounting and tax services; shareholder servicing; and preparation of various documents filed with the SEC. The Fund bears costs related to any compensation, fees, or reimbursements paid to Trustees who are independent of Janus Capital; fees and expenses of counsel to the Independent Trustees; fees and expenses of consultants to the Fund; custody fees; audit expenses; brokerage commissions and all other expenses in connection with execution of portfolio transactions; blue sky registration costs; interest; all federal, state and local taxes (including stamp, excise, income, and franchise taxes); expenses of shareholder meetings, including the preparation, printing, and distribution of proxy statements, notices, and reports to shareholders; expenses of printing and mailing to existing shareholders prospectuses, statements of additional information, shareholder reports, and other materials required to be mailed to shareholders by federal or state laws or regulations; transfer agency fees and expenses payable pursuant to a transfer agency agreement between the Trust and Janus Services on behalf of the Fund; any litigation; and other extraordinary expenses. In addition, some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Janus Henderson Global Allocation Fund - Moderate
Notes to Financial Statements
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $1,014.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $74.
3. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 2,563,189 | $ 16,931,172 | $ - | $ - | $ - | $ (4,982) | $ 44,259,621 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 211,423,060 | $44,436,063 | $ (176,442) | $ 44,259,621 |
Janus Henderson Global Allocation Fund - Moderate
Notes to Financial Statements
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 3,874,685 | $ 6,333,802 | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 2,725,686 | $ 10,106,836 | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ 667,878 | $ (109,897) | $ (557,981) |
Capital has been adjusted by $667,878, including $510,076 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Global Allocation Fund - Moderate
Notes to Financial Statements
4. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 353,204 | $ 4,939,392 | | 114,268 | $ 1,425,723 |
Reinvested dividends and distributions | 29,437 | 410,641 | | 41,697 | 531,217 |
Shares repurchased | (104,427) | (1,445,403) | | (230,672) | (2,591,996) |
Net Increase/(Decrease) | 278,214 | $ 3,904,630 | | (74,707) | $ (635,056) |
Class C Shares: | | | | | |
Shares sold | 56,448 | $ 789,172 | | 23,082 | $ 270,595 |
Reinvested dividends and distributions | 10,556 | 145,569 | | 18,697 | 235,580 |
Shares repurchased | (234,160) | (3,204,469) | | (168,881) | (2,067,570) |
Net Increase/(Decrease) | (167,156) | $ (2,269,728) | | (127,102) | $(1,561,395) |
Class D Shares: | | | | | |
Shares sold | 945,778 | $13,462,858 | | 711,446 | $ 8,880,092 |
Reinvested dividends and distributions | 610,595 | 8,572,754 | | 828,093 | 10,616,150 |
Shares repurchased | (1,695,816) | (23,402,772) | | (2,309,730) | (28,405,282) |
Net Increase/(Decrease) | (139,443) | $ (1,367,160) | | (770,191) | $(8,909,040) |
Class I Shares: | | | | | |
Shares sold | 178,870 | $ 2,515,837 | | 126,694 | $ 1,636,302 |
Reinvested dividends and distributions | 16,557 | 232,127 | | 23,047 | 295,000 |
Shares repurchased | (113,089) | (1,586,291) | | (208,436) | (2,654,302) |
Net Increase/(Decrease) | 82,338 | $ 1,161,673 | | (58,695) | $ (723,000) |
Class S Shares: | | | | | |
Shares sold | 7,773 | $ 107,378 | | 11,132 | $ 138,731 |
Reinvested dividends and distributions | 4,152 | 57,459 | | 9,666 | 122,172 |
Shares repurchased | (20,374) | (283,452) | | (91,849) | (1,125,701) |
Net Increase/(Decrease) | (8,449) | $ (118,615) | | (71,051) | $ (864,798) |
Class T Shares: | | | | | |
Shares sold | 331,271 | $ 4,578,143 | | 448,006 | $ 5,590,059 |
Reinvested dividends and distributions | 47,250 | 661,501 | | 67,252 | 860,151 |
Shares repurchased | (383,944) | (5,276,358) | | (692,927) | (8,543,372) |
Net Increase/(Decrease) | (5,423) | $ (36,714) | | (177,669) | $(2,093,162) |
5. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$95,059,886 | $ 95,127,458 | $ - | $ - |
6. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Global Allocation Fund - Moderate
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Allocation Fund – Moderate
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Global Allocation Fund - Moderate (one of the funds constituting Janus Investment Fund, referred to hereafter as the “Fund”) as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Global Allocation Fund - Moderate
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Global Allocation Fund - Moderate
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Global Allocation Fund - Moderate
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Global Allocation Fund - Moderate
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Global Allocation Fund - Moderate
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Capital Gain Distributions | $6,843,878 |
Foreign Taxes Paid | $52,741 |
Foreign Source Income | $114,437 |
Dividends Received Deduction Percentage | 17% |
Qualified Dividend Income Percentage | 25% |
Janus Henderson Global Allocation Fund - Moderate
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Global Allocation Fund - Moderate
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Allocation Fund - Moderate
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Global Allocation Fund - Moderate
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Global Allocation Fund - Moderate
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Allocation Fund - Moderate
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Global Allocation Fund - Moderate
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Ashwin Alankar
151 Detroit Street
Denver, CO 80206
DOB: 1974 | Executive Vice President and Portfolio Manager
Janus Henderson Global Allocation Fund – Moderate | 9/14-Present | Head of Global Asset Allocation of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. Formerly, Co-Chief Investment Officer of AllianceBernstein’s Tail Risk Parity (2010-2014). |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
Janus Henderson Global Allocation Fund - Moderate
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93022 08-21 |
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| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson Global Bond Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Bond Fund
Janus Henderson Global Bond Fund (unaudited)
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FUND SNAPSHOT As a core fixed income holding focused on generating superior risk-adjusted returns relative to the benchmark over a market cycle, the Fund combines a longer-term strategic asset allocation with a tactical component seeking to add incremental return. Portfolio allocations are dynamically adjusted based on opportunities identified through fundamental research, macro assessment and risk budgeting framework. | | 
Helen Anthony co-portfolio manager | 
Nick Maroutsos co-portfolio manager | 
Andrew Mulliner co-portfolio manager | |
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PERFORMANCE SUMMARY
During the one-year period ended June 30, 2021, Janus Henderson Global Bond Fund’s Class I Shares returned 3.96% compared with 2.63% for the Fund’s benchmark, the Bloomberg Barclays Global Aggregate Bond Index.
MARKET ENVIRONMENT
Government bond yields moved sideways over the first half of the period, as accommodative monetary and fiscal policy from central banks and their governments helped to dampen the impact of pandemic-related shutdowns and the uncertainty around reopening. Toward the end of 2020, the announcement of multiple vaccines and the U.S. election result helped to boost risk appetite and this improved sentiment continued into 2021. The new year saw a sharp rise in government bond yields in February and March, as a reflation mindset took hold, driven by the rollout of COVID-19 vaccines and anticipation – and subsequent delivery – of further U.S. fiscal stimulus. The riskier segments of the fixed income universe such as high-yield corporate debt and emerging markets rallied the strongest and outperformed the higher-quality investment-grade segments. Core government bond markets such as UK gilts and U.S. Treasuries lagged.
PERFORMANCE DISCUSSION
Improved investor sentiment and lower volatility reflected investors’ belief in the economic recovery, while globally accommodative fiscal and monetary policy further supported corporate credit markets. We had significantly increased exposure to investment-grade corporate bonds in the second quarter of 2020, which benefited relative performance during the period as credit spreads moved tighter.
Emerging market credit also remained a favored area as the asset class had initially lagged its U.S. and euro counterparts during the rally. Within the Fund’s emerging market credit exposure, we rotated a portion of our positioning out of investment grade into high yield.
During 2021, we continued taking profits on investment-grade corporate bonds where prospects for further upside appear limited, rotating into high-yield corporate debt on the belief that lower-rated securities had more to gain from improving economic fundamentals. Our out-of-index exposure to high-yield bonds was a meaningful contributor to relative results.
We reduced our allocation to U.S. agency mortgage-backed securities (MBS) over the period, believing valuations looked expensive relative to other credit markets. However, contribution from the underweight was offset by security selection, and positioning in the sector ultimately detracted from returns.
While government bond returns were relatively more muted in core markets, we continued to favor emerging market government bonds. We favored countries offering relatively high real yields, after taking into account expected inflation, expecting the central banks of these countries would be more likely to lower policy rates to support the economic recovery, benefiting bond returns. We maintained our position in the government bonds of Indonesia, which proved accretive as the central bank lowered its benchmark rate multiple times over the period. However, the position in Mexican local rates, which has performed well over the longer term, suffered late in the period following the country’s central bank meeting in June as the Banxico raised rates to 4.25% and the market priced in further interest rate hikes, leading to lower bond prices.
Within core developed markets, our expectation was that yield curves would steepen as the recovery continued, and we steadily reduced our interest rate exposure in the developed world. Our underweight allocation to Treasuries proved beneficial. However, in 2021 the reflationary backdrop led to higher yields and steeper yield curves
Janus Henderson Global Bond Fund (unaudited)
globally, which negatively impacted our positions in Australia where yields repriced sharply beyond the 3-year maturity, and our position generated a negative return.
DERIVATIVE USAGE
During the period, the Fund used forward foreign currency exchange contracts, which are employed to increase or decrease exposure to particular markets, to manage or adjust the risk profile of the Fund related to an investment or currency exposure, to adjust its currency exposure relative to its benchmark index, and to earn income and enhance returns. The Fund also used interest rate futures to help manage portfolio risk, duration and yield curve exposure. Use of derivatives detracted from relative results during the period. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
Central banks will likely remain patient and avoid pre-emptive tightening of policy, but they also cannot ignore the strength of the economic data. Given the outperformance of core government bond markets, particularly at longer maturities in recent months, this leaves current yields at the lower end of the expected range, in our view. Global divergence in rate cycles is likely to become more of a theme in coming years as different regions begin to adjust policy settings. Despite the pick-up in inflation, we expect this to peak later in the year and that inflation-linked bond markets have priced this in, with real yields at or close to historic lows. Within emerging market rates, we remain selective given higher inflation risks but continue to favor countries where real yields are elevated and currencies relatively stable.
Within credit, while we remain constructive on higher-yielding areas of corporate credit markets, we are also cognizant that the economic recovery is mostly priced in. The positive fundamental landscape and supportive market technicals should continue to suppress default rates in 2021.
Thank you for investing in Janus Henderson Global Bond Fund.
Janus Henderson Global Bond Fund (unaudited)
Fund At A Glance
June 30, 2021
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Fund Profile | | |
30-day Current Yield* | Without
Reimbursement | With
Reimbursement |
Class A Shares NAV | 0.49% | 0.82% |
Class A Shares MOP | 0.46% | 0.78% |
Class C Shares** | -0.31% | 0.09% |
Class D Shares | 0.82% | 1.03% |
Class I Shares | 0.92% | 1.10% |
Class N Shares | 1.01% | 1.18% |
Class S Shares | -13.78% | 0.63% |
Class T Shares | 0.73% | 0.93% |
Weighted Average Maturity | 9.2 Years |
Average Effective Duration*** | 8.0 Years |
* Yield will fluctuate. | | |
** Does not include the 1.00% contingent deferred sales charge. |
*** A theoretical measure of price volatility. | |
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Ratings† Summary - (% of Total Investments) | |
AAA | 3.2% |
AA | 25.4% |
A | 7.1% |
BBB | 14.5% |
BB | 6.4% |
B | 2.0% |
Not Rated | 39.0% |
Other | 2.4% |
† Credit ratings provided by Standard & Poor's (S&P), an independent credit rating agency. Credit ratings range from AAA (highest) to D (lowest) based on S&P's measures. Further information on S&P's rating methodology may be found at www.standardandpoors.com. Other rating agencies may rate the same securities differently. Ratings are relative and subjective and are not absolute standards of quality. Credit quality does not remove market risk and is subject to change. "Not Rated" securities are not rated by S&P, but may be rated by other rating agencies and do not necessarily indicate low quality. "Other" includes cash equivalents, equity securities, and certain derivative instruments. |
Significant Areas of Investment - (% of Net Assets)
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Asset Allocation - (% of Net Assets) | |
Foreign Government Bonds | | 38.4% | |
Corporate Bonds | | 35.0% | |
United States Treasury Notes/Bonds | | 12.2% | |
Mortgage-Backed Securities | | 5.7% | |
Inflation-Indexed Bonds | | 4.5% | |
Asset-Backed/Commercial Mortgage-Backed Securities | | 1.6% | |
Other | | 2.6% |
| | | 100.0% |
Emerging markets comprised 19.8% of total net assets.
Janus Henderson Global Bond Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 3.71% | 2.66% | 2.68% | 3.03% | | | 1.29% | 0.95% |
Class A Shares at MOP | | -1.18% | 1.67% | 2.18% | 2.55% | | | | |
Class C Shares at NAV | | 2.86% | 1.89% | 1.91% | 2.27% | | | 2.03% | 1.69% |
Class C Shares at CDSC | | 1.86% | 1.89% | 1.91% | 2.27% | | | | |
Class D Shares | | 3.94% | 2.85% | 2.85% | 3.19% | | | 0.93% | 0.73% |
Class I Shares | | 3.96% | 2.90% | 2.94% | 3.28% | | | 0.85% | 0.69% |
Class N Shares | | 3.97% | 3.00% | 2.94% | 3.26% | | | 0.74% | 0.59% |
Class S Shares | | 3.42% | 2.50% | 2.58% | 2.93% | | | 4.64% | 1.10% |
Class T Shares | | 3.72% | 2.75% | 2.76% | 3.10% | | | 1.03% | 0.84% |
Bloomberg Barclays Global Aggregate Bond Index | | 2.63% | 2.34% | 2.05% | 2.52% | | | | |
Morningstar Quartile - Class I Shares | | 3rd | 2nd | 1st | 1st | | | | |
Morningstar Ranking - based on total returns for World Bond Funds | | 148/212 | 75/192 | 32/179 | 29/170 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 4.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs),
Janus Henderson Global Bond Fund (unaudited)
Performance
non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class N Shares commenced operations on October 28, 2013. Performance shown for periods prior to October 28, 2013, reflects the performance of the Fund’s Class I Shares, calculated using the fees and expenses of Class N Shares, without the effect of any fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
Effective October 30, 2020, Helen Anthony, Nick Maroutsos and Andrew Mulliner are Co-Portfolios Managers of the Fund.
*The Fund’s inception date – December 28, 2010
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Bond Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $969.20 | $4.54 | | $1,000.00 | $1,020.18 | $4.66 | 0.93% |
Class C Shares | $1,000.00 | $965.80 | $7.94 | | $1,000.00 | $1,016.71 | $8.15 | 1.63% |
Class D Shares | $1,000.00 | $970.20 | $3.52 | | $1,000.00 | $1,021.22 | $3.61 | 0.72% |
Class I Shares | $1,000.00 | $971.30 | $3.27 | | $1,000.00 | $1,021.47 | $3.36 | 0.67% |
Class N Shares | $1,000.00 | $970.80 | $2.88 | | $1,000.00 | $1,021.87 | $2.96 | 0.59% |
Class S Shares | $1,000.00 | $968.30 | $5.47 | | $1,000.00 | $1,019.24 | $5.61 | 1.12% |
Class T Shares | $1,000.00 | $969.70 | $4.00 | | $1,000.00 | $1,020.73 | $4.11 | 0.82% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Principal Amounts
| | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– 1.6% | | | |
| | JP Morgan Mortgage Trust 2019-1 A15, 4.0000%, 5/25/49 (144A)‡ | | $339,651 | | | $346,852 | |
| | JP Morgan Mortgage Trust 2019-LTV2, 3.5000%, 12/25/49 (144A)‡ | | 241,369 | | | 246,943 | |
| | Kimberly-Clark de Mexico SAB de CV, 2.4310%, 7/1/31 | | 300,000 | | | 297,027 | |
| | Mortgage Funding 2008-1 PLC, | | | | | | |
| | ICE LIBOR GBP 3 Month + 1.1000%, 1.1843%, 3/13/46‡ | | 494,235 | GBP | | 684,334 | |
| | RESIMAC Bastille Trust Series 2018-1NC, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8500%, 0.9300%, 12/5/59 (144A)‡ | | 304,170 | | | 304,681 | |
| | RMAC Securities No 1 2006-NS3X PLC, | | | | | | |
| | ICE LIBOR GBP 3 Month + 0.1500%, 0.2343%, 6/12/44‡ | | 661,583 | GBP | | 881,644 | |
| | RMAC Securities No 1 2006-NS4X PLC, | | | | | | |
| | ICE LIBOR GBP 3 Month + 0.1700%, 0.2543%, 6/12/44‡ | | 669,420 | GBP | | 893,795 | |
| | RMAC Securities No 1 PLC, | | | | | | |
| | ICE LIBOR GBP 3 Month + 0.1500%, 0.2343%, 6/12/44‡ | | 187,993 | GBP | | 251,675 | |
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $3,817,554) | | 3,906,951 | |
Corporate Bonds– 35.0% | | | |
Banking – 3.8% | | | |
| | Bank of America Corp, | | | | | | |
| | Euro Interbank Offered Rate 3 Month + 3.6700%, 3.6480%, 3/31/29‡ | | 414,000 | EUR | | 592,719 | |
| | Citigroup Inc, SOFR + 4.5480%, 5.3160%, 3/26/41‡ | | 627,000 | | | 838,454 | |
| | Credit Agricole SA/London, SOFR + 1.6760%, 1.9070%, 6/16/26 (144A)‡ | | 372,000 | | | 379,269 | |
| | Credit Suisse Group AG, UK Gilts 1 Year + 2.2300%, 2.2500%, 6/9/28‡ | | 400,000 | GBP | | 567,475 | |
| | Credit Suisse Group AG, 0.6250%, 1/18/33 | | 520,000 | EUR | | 579,293 | |
| | DIB Sukuk Ltd, 2.9500%, 1/16/26 | | 758,000 | | | 791,253 | |
| | HSBC Holdings PLC, SOFR + 1.9290%, 2.0990%, 6/4/26‡ | | 1,100,000 | | | 1,130,434 | |
| | JPMorgan Chase & Co, SOFR + 3.7900%, 4.4930%, 3/24/31‡ | | 896,000 | | | 1,061,112 | |
| | Natwest Group PLC, | | | | | | |
| | UK Govt Bonds 5 Year Note Generic Bid Yield + 4.9850%, 5.1250%‡,µ | | 200,000 | GBP | | 297,714 | |
| | Royal Bank of Scotland Group PLC, | | | | | | |
| | UK Govt Bonds 5 Year Note Generic Bid Yield + 3.5500%, 3.6220%, 8/14/30‡ | | 222,000 | GBP | | 327,472 | |
| | Standard Chartered PLC, EUR SWAP ANNUAL 5 YR + 2.8000%, 2.5000%, 9/9/30‡ | | 307,000 | EUR | | 386,282 | |
| | Stichting AK Rabobank Certificaten, 2.1880%‡,µ | | 500,000 | EUR | | 797,676 | |
| | SVB Financial Group, 3.1250%, 6/5/30 | | 254,000 | | | 270,326 | |
| | Wells Fargo & Co, SOFR + 2.1000%, 2.3930%, 6/2/28‡ | | 1,100,000 | | | 1,140,805 | |
| | | 9,160,284 | |
Basic Industry – 1.0% | | | |
| | Alpek SAB de CV, 3.2500%, 2/25/31 (144A) | | 1,240,000 | | | 1,254,892 | |
| | Alrosa Finance SA, 3.1000%, 6/25/27 | | 595,000 | | | 609,899 | |
| | Ecolab Inc, 4.8000%, 3/24/30 | | 101,000 | | | 123,561 | |
| | Firmenich Productions SAS, 1.7500%, 4/30/30 | | 194,000 | EUR | | 253,245 | |
| | Klabin Austria GmbH, 3.2000%, 1/12/31 (144A) | | 200,000 | | | 196,228 | |
| | | 2,437,825 | |
Brokerage – 0.3% | | | |
| | Banco BTG Pactual SA/Cayman Islands, 4.5000%, 1/10/25 | | 700,000 | | | 733,215 | |
Capital Goods – 2.5% | | | |
| | Arcelik AS, 5.0000%, 4/3/23 | | 700,000 | | | 724,500 | |
| | BAE Systems PLC, 3.4000%, 4/15/30 (144A) | | 200,000 | | | 217,381 | |
| | Boeing Co, 1.4330%, 2/4/24 | | 1,300,000 | | | 1,303,440 | |
| | Boeing Co, 2.1960%, 2/4/26 | | 701,000 | | | 707,700 | |
| | CANPACK SA / Eastern PA Land Invetment Holding LLC, 2.3750%, 11/1/27 (144A) | | 230,000 | EUR | | 278,484 | |
| | Cemex SAB de CV, 3.8750%, 7/11/31 (144A) | | 758,000 | | | 770,507 | |
| | Foxconn Far East Ltd, 1.6250%, 10/28/25 | | 900,000 | | | 904,113 | |
| | HT Troplast GmbH, 9.2500%, 7/15/25 | | 550,000 | EUR | | 721,622 | |
| | Siemens Financieringsmaatschappij NV, 0.8750%, 6/5/23 | | 300,000 | GBP | | 418,003 | |
| | | 6,045,750 | |
Communications – 4.6% | | | |
| | Activision Blizzard Inc, 1.3500%, 9/15/30 | | 198,000 | | | 185,137 | |
| | Activision Blizzard Inc, 2.5000%, 9/15/50 | | 800,000 | | | 718,110 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Principal Amounts
| | | Value | |
Corporate Bonds– (continued) | | | |
Communications– (continued) | | | |
| | AT&T Inc, 2.7500%, 6/1/31 | | $1,154,000 | | | $1,199,570 | |
| | AT&T Inc, 3.8500%, 6/1/60 | | 574,000 | | | 604,969 | |
| | Comcast Corp, 2.8000%, 1/15/51 | | 570,000 | | | 548,414 | |
| | HTA Group Ltd, 7.0000%, 12/18/25 | | 700,000 | | | 744,646 | |
| | Millicom International Cellular SA, 4.5000%, 4/27/31 | | 500,000 | | | 517,500 | |
| | Millicom International Cellular SA, 4.5000%, 4/27/31 (144A) | | 200,000 | | | 207,000 | |
| | MTN Mauritius Investments Ltd, 4.7550%, 11/11/24 | | 700,000 | | | 747,103 | |
| | Netflix Inc, 4.6250%, 5/15/29 | | 480,000 | EUR | | 710,653 | |
| | Prosus NV, 4.0270%, 8/3/50 | | 200,000 | | | 192,293 | |
| | Prosus NV, 4.0270%, 8/3/50 (144A) | | 200,000 | | | 192,293 | |
| | Prosus NV, 3.8320%, 2/8/51 | | 207,000 | | | 192,630 | |
| | SES SA, 2.0000%, 7/2/28 | | 530,000 | EUR | | 679,527 | |
| | T-Mobile USA Inc, 2.5500%, 2/15/31 | | 788,000 | | | 796,826 | |
| | Verizon Communications Inc, 3.0000%, 3/22/27 | | 289,000 | | | 311,002 | |
| | Vmed O2 UK Financing I PLC, 4.7500%, 7/15/31 (144A) | | 1,200,000 | | | 1,218,000 | |
| | VMED O2 UK Financing I PLC, 4.0000%, 1/31/29 | | 510,000 | GBP | | 696,981 | |
| | VZ Vendor Financing II BV, 2.8750%, 1/15/29 | | 610,000 | EUR | | 708,278 | |
| | | 11,170,932 | |
Consumer Cyclical – 3.1% | | | |
| | Amazon.com Inc, 2.7000%, 6/3/60 | | 606,000 | | | 580,426 | |
| | Country Garden Holdings Co Ltd, 4.8000%, 8/6/30 | | 1,132,000 | | | 1,178,773 | |
| | Dollar General Corp, 3.5000%, 4/3/30 | | 211,000 | | | 231,799 | |
| | Jaguar Land Rover Automotive PLC, 4.5000%, 1/15/26 | | 600,000 | EUR | | 753,895 | |
| | JSM Global Sarl, 4.7500%, 10/20/30 | | 700,000 | | | 725,998 | |
| | Melco Resorts Finance Ltd, 5.7500%, 7/21/28 | | 700,000 | | | 738,500 | |
| | Pinnacle Bidco PLC, 6.3750%, 2/15/25 | | 530,000 | GBP | | 748,279 | |
| | Studio City Finance Ltd, 5.0000%, 1/15/29 | | 483,000 | | | 487,357 | |
| | Tesco Corporate Treasury Services, 2.7500%, 4/27/30 | | 978,000 | GBP | | 1,443,519 | |
| | Vivo Energy Investments BV, 5.1250%, 9/24/27 (144A) | | 725,000 | | | 773,938 | |
| | | 7,662,484 | |
Consumer Non-Cyclical – 4.7% | | | |
| | Agilent Technologies Inc, 2.1000%, 6/4/30 | | 1,100,000 | | | 1,088,309 | |
| | Altria Group Inc, 3.4000%, 5/6/30 | | 666,000 | | | 702,401 | |
| | Archer-Daniels-Midland Co, 2.7500%, 3/27/25 | | 518,000 | | | 552,050 | |
| | Biogen Inc, 2.2500%, 5/1/30 | | 1,113,000 | | | 1,116,033 | |
| | Cheplapharm Arzneimittel GmbH, 3.5000%, 2/11/27 | | 610,000 | EUR | | 730,371 | |
| | Dentsply Sirona Inc, 3.2500%, 6/1/30 | | 794,000 | | | 849,222 | |
| | Fomento Economico Mexicano SAB de CV, 3.5000%, 1/16/50 | | 460,000 | | | 483,810 | |
| | Grupo Bimbo SAB de CV, 4.0000%, 9/6/49 | | 350,000 | | | 372,683 | |
| | Hasbro Inc, 3.9000%, 11/19/29 | | 753,000 | | | 837,246 | |
| | IQVIA Inc, 1.7500%, 3/15/26 | | 227,000 | EUR | | 271,722 | |
| | IQVIA Inc, 2.2500%, 3/15/29 | | 268,000 | EUR | | 316,853 | |
| | Kellogg Co, 2.1000%, 6/1/30 | | 1,238,000 | | | 1,244,091 | |
| | Kimberly-Clark de Mexico SAB de CV, 2.4310%, 7/1/31 (144A) | | 200,000 | | | 198,018 | |
| | Mars Inc, 4.1250%, 4/1/54 (144A) | | 553,000 | | | 688,723 | |
| | McCormick & Co Inc/MD, 2.5000%, 4/15/30 | | 194,000 | | | 199,788 | |
| | Sysco Corp, 5.9500%, 4/1/30 | | 136,000 | | | 174,428 | |
| | Takeda Pharmaceutical Co Ltd, 3.0000%, 11/21/30 | | 467,000 | EUR | | 663,434 | |
| | Takeda Pharmaceutical Co Ltd, 2.0000%, 7/9/40 | | 390,000 | EUR | | 497,070 | |
| | Upjohn Inc, 2.7000%, 6/22/30 (144A) | | 430,000 | | | 434,808 | |
| | | 11,421,060 | |
Electric – 1.0% | | | |
| | AEP Transmission Co LLC, 3.6500%, 4/1/50 | | 192,000 | | | 217,151 | |
| | Ameren Corp, 3.5000%, 1/15/31 | | 195,000 | | | 213,511 | |
| | Berkshire Hathaway Energy Co, 3.7000%, 7/15/30 | | 171,000 | | | 193,830 | |
| | Black Hills Corp, 2.5000%, 6/15/30 | | 176,000 | | | 179,139 | |
| | East Ohio Gas Co/The, 2.0000%, 6/15/30 (144A) | | 95,000 | | | 93,918 | |
| | East Ohio Gas Co/The, 3.0000%, 6/15/50 (144A) | | 108,000 | | | 106,947 | |
| | Elia Transmission Belgium SA, 0.8750%, 4/28/30 | | 200,000 | EUR | | 244,398 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Principal Amounts
| | | Value | |
Corporate Bonds– (continued) | | | |
Electric– (continued) | | | |
| | IE2 Holdco SAU, 2.8750%, 6/1/26 | | 400,000 | EUR | | $528,066 | |
| | National Grid Electrcity Transmission PLC, 0.8230%, 7/7/32 | | 474,000 | EUR | | 567,703 | |
| | | 2,344,663 | |
Electrical Equipment – 0.3% | | | |
| | Signify NV, 2.3750%, 5/11/27 | | 467,000 | EUR | | 613,408 | |
Energy – 1.4% | | | |
| | LUKOIL Securities BV, 3.8750%, 5/6/30 (144A) | | $1,000,000 | | | 1,057,160 | |
| | PTTEP Treasury Center Co Ltd, 2.5870%, 6/10/27 (144A) | | 275,000 | | | 284,793 | |
| | Repsol International Finance BV, EUR SWAP ANNUAL 5 YR + 4.4090%, 4.2470%‡,µ | | 550,000 | EUR | | 717,235 | |
| | Tengizchevroil Finance Company International Ltd, 2.6250%, 8/15/25 (144A) | | 720,000 | | | 738,585 | |
| | Total Capital International SA, 3.1270%, 5/29/50 | | 700,000 | | | 709,574 | |
| | | 3,507,347 | |
Finance Companies – 0.3% | | | |
| | Peach Property Finance GmbH, 4.3750%, 11/15/25 (144A) | | 540,000 | EUR | | 671,024 | |
Financial Institutions – 0.3% | | | |
| | CPI Property Group SA, 2.7500%, 5/12/26 | | 585,000 | EUR | | 754,637 | |
Government Sponsored – 3.6% | | | |
| | Abu Dhabi National Energy Co, 2.0000%, 4/29/28 (144A) | | 517,000 | | | 519,895 | |
| | China Development Bank, 3.3400%, 7/14/25 | | 6,540,000 | CNY | | 1,017,648 | |
| | Emirates NDB Bank PJSC, USD SWAP SEMI 30/360 6YR + 3.6560%, 6.1250%‡,µ | | 700,000 | | | 754,250 | |
| | Gazprom PJSC, 3.0000%, 6/29/27 | | 1,195,000 | | | 1,212,528 | |
| | Petrobras Global Finance BV, 5.6000%, 1/3/31 | | 629,000 | | | 704,480 | |
| | Petroleos Mexicanos, 6.5000%, 3/13/27 | | 725,000 | | | 765,238 | |
| | Qatar Petroleum, 1.3750%, 9/12/26 (144A) | | 789,250 | | | 789,250 | |
| | Qatar Petroleum, 2.2500%, 7/12/31 (144A) | | 662,878 | | | 662,878 | |
| | SA Global Sukuk Ltd, 2.6940%, 6/17/31 (144A) | | 310,000 | | | 313,844 | |
| | Saudi Arabian Oil Co, 3.2500%, 11/24/50 (144A) | | 365,000 | | | 354,050 | |
| | Saudi Electricity Global Sukuk Co 2, 5.0600%, 4/8/43 | | 400,000 | | | 481,000 | |
| | Saudi Electricity Global Sukuk Co 5, 1.7400%, 9/17/25 | | 700,000 | | | 708,778 | |
| | SingTel Group Treasury Pte Ltd, 1.8750%, 6/10/30 | | 450,000 | | | 445,458 | |
| | | 8,729,297 | |
Insurance – 1.8% | | | |
| | Aia Group Ltd, 3.3750%, 4/7/30 (144A) | | 450,000 | | | 495,733 | |
| | Aviva PLC, | | | | | | |
| | UK Govt Bonds 5 Year Note Generic Bid Yield + 4.7000%, 4.0000%, 6/3/55‡ | | 150,000 | GBP | | 230,896 | |
| | Credit Agricole Assurances SA, 2.0000%, 7/17/30 | | 400,000 | EUR | | 496,518 | |
| | Direct Line Insurance Group PLC, 4.0000%, 6/5/32 | | 200,000 | GBP | | 310,835 | |
| | Galaxy Bidco Ltd, 6.5000%, 7/31/26 | | 490,000 | GBP | | 714,150 | |
| | Health Care Service Corp, 2.2000%, 6/1/30 (144A) | | 1,100,000 | | | 1,103,338 | |
| | Massachusetts Mutual Life Insurance Co, 3.3750%, 4/15/50 (144A) | | 467,000 | | | 487,471 | |
| | PacifiCorp, 3.3000%, 3/15/51 | | 222,000 | | | 235,120 | |
| | Willis North America Inc, 2.9500%, 9/15/29 | | 371,000 | | | 389,556 | |
| | | 4,463,617 | |
Metals & Mining – 0.1% | | | |
| | AngloGold Ashanti Holdings PLC, 3.7500%, 10/1/30 | | 205,000 | | | 211,310 | |
Real Estate Investment Trusts (REITs) – 0.1% | | | |
| | Agree LP, 2.9000%, 10/1/30 | | 176,000 | | | 183,636 | |
Real Estate Management & Development – 0.9% | | | |
| | Adler Group SA, 3.2500%, 8/5/25 | | 600,000 | EUR | | 733,870 | |
| | Heimstaden Bostad AB, EUR SWAP ANNUAL 5 YR + 3.9140%, 3.3750%‡,µ | | 590,000 | EUR | | 723,263 | |
| | Samhallsbyggnadsbolaget i Norden AB, | | | | | | |
| | EUR SWAP ANNUAL 5 YR + 3.2270%, 2.6250%‡,µ | | 620,000 | EUR | | 735,076 | |
| | | 2,192,209 | |
Technology – 4.7% | | | |
| | Apple Inc, 2.3750%, 2/8/41 | | 2,500,000 | | | 2,424,729 | |
| | Apple Inc, 2.6500%, 5/11/50 | | 584,000 | | | 573,392 | |
| | Applied Materials Inc, 1.7500%, 6/1/30 | | 1,100,000 | | | 1,087,795 | |
| | Broadcom Inc, 4.3000%, 11/15/32 | | 583,000 | | | 663,877 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Principal Amounts
| | | Value | |
Corporate Bonds– (continued) | | | |
Technology– (continued) | | | |
| | Equinix Inc, 2.1500%, 7/15/30 | | $892,000 | | | $886,306 | |
| | Fiserv Inc, 1.6250%, 7/1/30 | | 446,000 | EUR | | 567,580 | |
| | Global Payments Inc, 2.9000%, 5/15/30 | | 1,088,000 | | | 1,133,549 | |
| | Lenovo Group Ltd, 3.4210%, 11/2/30 | | 1,027,000 | | | 1,073,266 | |
| | Lenovo Group Ltd, 3.4210%, 11/2/30 (144A) | | 200,000 | | | 209,010 | |
| | PayPal Holdings Inc, 2.3000%, 6/1/30 | | 301,000 | | | 311,506 | |
| | Tencent Music Entertainment Group, 1.3750%, 9/3/25 | | 258,000 | | | 255,433 | |
| | Tencent Music Entertainment Group, 2.0000%, 9/3/30 | | 370,000 | | | 356,273 | |
| | TSMC Global Ltd, 0.7500%, 9/28/25 (144A) | | 1,200,000 | | | 1,173,648 | |
| | VMware Inc, 4.6500%, 5/15/27 | | 696,000 | | | 798,783 | |
| | | 11,515,147 | |
Tobacco – 0.1% | | | |
| | BAT Capital Corp, 4.7000%, 4/2/27 | | 319,000 | | | 360,471 | |
Transportation – 0.2% | | | |
| | Heathrow Funding Ltd, 2.7500%, 10/13/29 | | 184,000 | GBP | | 264,729 | |
| | United Parcel Service Inc, 4.4500%, 4/1/30 | | 282,000 | | | 341,307 | |
| | | 606,036 | |
Water Utilities – 0.2% | | | |
| | Thames Water Utilities Finance PLC, 2.3750%, 4/22/40 | | 434,000 | GBP | | 603,114 | |
Total Corporate Bonds (cost $82,712,504) | | 85,387,466 | |
Foreign Government Bonds– 38.4% | | | |
| | Abu Dhabi Government International Bond, 2.7000%, 9/2/70 (144A) | | 460,000 | | | 416,576 | |
| | Australia Government Bond, 1.7500%, 6/21/51 | | 840,000 | AUD | | 556,182 | |
| | Canadian Government Bond, 2.2500%, 6/1/29 | | 2,399,000 | CAD | | 2,083,646 | |
| | China Government Bond, 3.2900%, 5/23/29 | | 29,850,000 | CNY | | 4,677,357 | |
| | China Government Bond, 2.6800%, 5/21/30 | | 43,670,000 | CNY | | 6,504,101 | |
| | China Government Bond, 3.8600%, 7/22/49 | | 29,560,000 | CNY | | 4,710,220 | |
| | European Union, 0%, 10/4/30 | | 3,469,000 | EUR | | 4,123,152 | |
| | European Union, 0%, 7/4/31 | | 1,655,500 | EUR | | 1,958,368 | |
| | European Union, 0.1000%, 10/4/40 | | 979,000 | EUR | | 1,073,475 | |
| | French Republic Government Bond OAT, 0%, 11/25/30 | | 2,517,083 | EUR | | 2,975,336 | |
| | French Republic Government Bond OAT, 4.0000%, 4/25/60 | | 182,001 | EUR | | 426,594 | |
| | Indonesia Treasury Bond, 8.3750%, 3/15/34 | | 75,301,000,000 | IDR | | 5,744,175 | |
| | Italy Buoni Poliennali Del Tesoro, 0.9500%, 3/15/23 | | 545,000 | EUR | | 660,767 | |
| | Italy Buoni Poliennali Del Tesoro, 1.8500%, 7/1/25 (144A) | | 2,888,000 | EUR | | 3,680,492 | |
| | Italy Buoni Poliennali Del Tesoro, 3.4500%, 3/1/48 (144A) | | 734,000 | EUR | | 1,183,725 | |
| | Japan Government Forty Year Bond, 0.8000%, 3/20/58 | | 41,950,000 | JPY | | 384,117 | |
| | Japan Government Ten Year Bond, 0.4000%, 6/20/25 | | 491,850,000 | JPY | | 4,520,566 | |
| | Japan Government Ten Year Bond, 0.1000%, 12/20/29 | | 1,186,350,000 | JPY | | 10,774,767 | |
| | Japan Government Thirty Year Bond, 0.5000%, 9/20/46 | | 84,850,000 | JPY | | 749,312 | |
| | Japan Government Thirty Year Bond, 0.7000%, 6/20/48 | | 260,800,000 | JPY | | 2,390,870 | |
| | Kingdom of Belgium Government Bond, 1.0000%, 6/22/26 (144A) | | 3,525,926 | EUR | | 4,486,755 | |
| | Kingdom of Belgium Government Bond, 2.1500%, 6/22/66 (144A) | | 899,504 | EUR | | 1,488,837 | |
| | Kingdom of Saudi Arabia International Bond, 2.2500%, 2/2/33 (144A) | | 530,000 | | | 514,869 | |
| | Mexican Bonos, 8.0000%, 11/7/47 | | 11,750,000 | MXN | | 621,044 | |
| | Province of British Columbia Canada, 2.8500%, 6/18/25 | | 5,500,000 | CAD | | 4,747,737 | |
| | Province of Quebec Canada, 3.0000%, 9/1/23 | | 5,500,000 | CAD | | 4,667,287 | |
| | Spain Government Bond, 0.6000%, 10/31/29 (144A) | | 2,485,000 | EUR | | 3,037,203 | |
| | Spain Government Bond, 1.2500%, 10/31/30 (144A) | | 4,424,000 | EUR | | 5,678,424 | |
| | United Kingdom Gilt, 1.6250%, 10/22/28 | | 4,112,518 | GBP | | 6,127,210 | |
| | United Kingdom Gilt, 1.5000%, 7/22/47 | | 1,776,769 | GBP | | 2,599,442 | |
Total Foreign Government Bonds (cost $89,467,236) | | 93,562,606 | |
Inflation-Indexed Bonds– 4.5% | | | |
| | Japanese Government CPI Linked Bond, 0.1000%, 3/10/29((cost $11,336,086) | | 1,189,273,800 | JPY | | 11,000,890 | |
Mortgage-Backed Securities– 5.7% | | | |
Fannie Mae: | | | |
| | 2.0000%, TBA, 15 Year Maturity | | 495,954 | | | 511,487 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Principal Amounts
| | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Fannie Mae Pool: | | | |
| | 2.5000%, 11/1/34 | | $315,119 | | | $331,656 | |
| | 4.5000%, 11/1/42 | | 21,640 | | | 23,983 | |
| | 3.0000%, 1/1/43 | | 9,137 | | | 9,689 | |
| | 4.5000%, 10/1/44 | | 51,745 | | | 58,037 | |
| | 4.5000%, 3/1/45 | | 75,602 | | | 84,795 | |
| | 4.5000%, 6/1/45 | | 43,061 | | | 47,839 | |
| | 4.5000%, 2/1/46 | | 77,098 | | | 85,444 | |
| | 3.0000%, 3/1/46 | | 1,755,718 | | | 1,846,625 | |
| | 3.0000%, 2/1/47 | | 2,434,098 | | | 2,584,074 | |
| | 3.0000%, 9/1/49 | | 2,897 | | | 3,053 | |
| | 2.5000%, 1/1/50 | | 8,443 | | | 8,767 | |
| | 2.5000%, 10/1/50 | | 11,931 | | | 12,363 | |
| | 2.5000%, 1/1/51 | | 45,706 | | | 47,280 | |
| | 3.0000%, 2/1/57 | | 33,250 | | | 35,327 | |
| | | 5,178,932 | |
Freddie Mac Pool: | | | |
| | 3.0000%, 5/1/31 | | 291,097 | | | 307,811 | |
| | 3.0000%, 9/1/32 | | 1,473 | | | 1,560 | |
| | 3.0000%, 10/1/32 | | 2,182 | | | 2,301 | |
| | 3.0000%, 12/1/32 | | 386,136 | | | 408,522 | |
| | 2.5000%, 4/1/33 | | 349,124 | | | 364,730 | |
| | 2.5000%, 11/1/34 | | 275,526 | | | 290,016 | |
| | 3.0000%, 6/1/43 | | 635 | | | 663 | |
| | 4.5000%, 5/1/44 | | 38,429 | | | 42,693 | |
| | 4.5000%, 7/1/48 | | 30,462 | | | 32,797 | |
| | 3.0000%, 10/1/49 | | 592 | | | 617 | |
| | 3.0000%, 11/1/49 | | 4,378,706 | | | 4,638,723 | |
| | 3.0000%, 11/1/49 | | 127,341 | | | 132,737 | |
| | 3.0000%, 11/1/49 | | 42,728 | | | 44,538 | |
| | 3.0000%, 12/1/49 | | 66,685 | | | 69,511 | |
| | 3.0000%, 12/1/49 | | 14,892 | | | 15,523 | |
| | 3.0000%, 12/1/49 | | 7,456 | | | 7,772 | |
| | 2.5000%, 1/1/50 | | 3,463 | | | 3,596 | |
| | 3.0000%, 3/1/50 | | 3,233 | | | 3,376 | |
| | | 6,367,486 | |
Ginnie Mae II Pool: | | | |
| | 4.0000%, 5/20/48 | | 540,074 | | | 574,127 | |
| | 4.0000%, 6/20/48 | | 1,257,198 | | | 1,335,289 | |
| | | 1,909,416 | |
Total Mortgage-Backed Securities (cost $13,705,174) | | 13,967,321 | |
United States Treasury Notes/Bonds– 12.2% | | | |
| | 0.3750%, 3/31/22 | | 3,290,100 | | | 3,297,297 | |
| | 0.1250%, 3/31/23 | | 7,354,200 | | | 7,342,996 | |
| | 2.8750%, 10/31/23 | | 6,442,600 | | | 6,825,129 | |
| | 2.5000%, 1/31/24 | | 741,000 | | | 781,784 | |
| | 2.6250%, 12/31/25 | | 7,434,800 | | | 8,037,135 | |
| | 1.1250%, 2/15/31 | | 3,674,300 | | | 3,566,942 | |
Total United States Treasury Notes/Bonds (cost $29,824,749) | | 29,851,283 | |
Total Investments (total cost $230,863,303) – 97.4% | | 237,676,517 | |
Cash, Receivables and Other Assets, net of Liabilities – 2.6% | | 6,227,515 | |
Net Assets – 100% | | $243,904,032 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $77,005,537 | | 32.4 | % |
Japan | | 30,981,026 | | 13.0 | |
United Kingdom | | 21,709,955 | | 9.1 | |
China | | 20,559,297 | | 8.7 | |
Canada | | 11,498,670 | | 4.9 | |
Spain | | 9,960,928 | | 4.2 | |
Supranational | | 7,154,995 | | 3.0 | |
Belgium | | 6,219,990 | | 2.6 | |
Indonesia | | 5,744,175 | | 2.4 | |
Italy | | 5,524,984 | | 2.3 | |
France | | 4,987,291 | | 2.1 | |
Mexico | | 4,763,219 | | 2.0 | |
Germany | | 3,274,890 | | 1.4 | |
Netherlands | | 2,893,300 | | 1.2 | |
Russia | | 2,879,587 | | 1.2 | |
United Arab Emirates | | 2,481,974 | | 1.1 | |
Saudi Arabia | | 2,372,541 | | 1.0 | |
Brazil | | 2,359,921 | | 1.0 | |
Taiwan | | 2,077,761 | | 0.9 | |
Sweden | | 1,458,339 | | 0.6 | |
Qatar | | 1,452,128 | | 0.6 | |
Switzerland | | 1,400,013 | | 0.6 | |
Hong Kong | | 1,234,233 | | 0.5 | |
Australia | | 860,863 | | 0.4 | |
Czech Republic | | 754,637 | | 0.3 | |
South Africa | | 747,103 | | 0.3 | |
Democratic Republic of the Congo | | 744,646 | | 0.3 | |
Kazakhstan | | 738,585 | | 0.3 | |
Turkey | | 724,500 | | 0.3 | |
Colombia | | 724,500 | | 0.3 | |
Luxembourg | | 679,527 | | 0.3 | |
Macao | | 487,357 | | 0.2 | |
Singapore | | 445,458 | | 0.2 | |
Thailand | | 284,793 | | 0.1 | |
Poland | | 278,484 | | 0.1 | |
Tanzania | | 211,310 | | 0.1 | |
| | | | | | |
| | | | | | |
Total | | $237,676,517 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 6/30/21 |
Investment Companies - N/A |
Money Markets - N/A | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | $ | 9,178 | $ | (61) | $ | (176) | $ | - |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 418∆ | | - | | - | | - |
Total Affiliated Investments – N/A | $ | 9,596 | $ | (61) | $ | (176) | $ | - |
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - N/A |
Money Markets - N/A | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | | 11,801,751 | | 105,735,977 | | (117,537,491) | | - |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | - | | 5,120,402 | | (5,120,402) | | - |
| | | | | | | |
Schedule of Forward Foreign Currency Exchange Contracts | | | | | | |
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Bank of America, National Association: | | | | | | | | |
Australian Dollar | 9/2/21 | 1,377,000 | $ | (1,054,293) | $ | (21,558) | | |
British Pound | 9/2/21 | (8,070,223) | | 11,381,314 | | 218,038 | | |
Canadian Dollar | 9/2/21 | 2,770,174 | | (2,286,794) | | (51,720) | | |
Danish Krone | 9/2/21 | (206,000) | | 33,626 | | 729 | | |
Euro | 9/2/21 | 7,417,200 | | (9,005,371) | | (200,066) | | |
Japanese Yen | 9/2/21 | (348,295,000) | | 3,159,654 | | 22,395 | | |
Mexican Peso | 9/2/21 | (4,633,400) | | 228,608 | | (2,051) | | |
New Zealand Dollar | 9/2/21 | 7,806,000 | | (5,572,079) | | (118,480) | | |
| | | | | | | | | |
| | | | | | | (152,713) | | |
Barclays Capital, Inc.: | | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Australian Dollar | 9/2/21 | (601,000) | $ | 459,989 | | 9,245 | |
British Pound | 9/2/21 | (179,400) | | 252,994 | | 4,836 | |
Canadian Dollar | 9/2/21 | (10,711,000) | | 8,841,347 | | 199,332 | |
Euro | 9/2/21 | (4,886,961) | | 5,932,927 | | 131,386 | |
Japanese Yen | 9/2/21 | 447,287,000 | | (4,058,280) | | (29,353) | |
Norwegian Krone | 9/2/21 | (18,589,000) | | 2,216,943 | | 56,147 | |
Swedish Krona | 9/2/21 | 11,752,000 | | (1,410,067) | | (35,532) | |
| | | | | | | | |
| | | | | | | 336,061 | |
BNP Paribas: | | | | | | | |
British Pound | 9/2/21 | 1,606,000 | | (2,264,733) | | (43,205) | |
Canadian Dollar | 9/2/21 | (7,205,000) | | 5,948,415 | | 135,165 | |
Euro | 9/2/21 | (8,865,184) | | 10,764,993 | | 240,718 | |
Japanese Yen | 9/2/21 | 395,979,000 | | (3,592,598) | | (25,826) | |
Mexican Peso | 9/2/21 | (19,735,777) | | 973,682 | | (8,800) | |
New Zealand Dollar | 9/2/21 | (379,000) | | 270,545 | | 5,760 | |
Norwegian Krone | 9/2/21 | 23,970,000 | | (2,858,516) | | (72,230) | |
Singapore Dollar | 9/2/21 | 2,643,000 | | (1,989,378) | | (23,447) | |
Swedish Krona | 9/2/21 | (5,258,000) | | 631,074 | | 16,089 | |
| | | | | | | | |
| | | | | | | 224,224 | |
Citibank, National Association: | | | | | | | |
Australian Dollar | 9/2/21 | 770,152 | | (589,703) | | (12,097) | |
British Pound | 9/2/21 | (7,417,420) | | 10,461,388 | | 201,113 | |
British Pound | 9/17/21 | 1,344,213 | | (1,870,000) | | (10,517) | |
Canadian Dollar | 9/2/21 | 8,823,575 | | (7,283,699) | | (164,525) | |
Euro | 9/2/21 | (7,179,680) | | 8,716,359 | | 193,026 | |
Japanese Yen | 9/2/21 | 22,188,315 | | (201,280) | | (1,420) | |
Mexican Peso | 9/2/21 | (58,968,200) | | 2,909,079 | | (26,463) | |
New Zealand Dollar | 9/2/21 | (5,441,000) | | 3,883,579 | | 82,268 | |
Norwegian Krone | 9/2/21 | (26,240,000) | | 3,127,664 | | 77,513 | |
Swedish Krona | 9/2/21 | 2,260,000 | | (271,209) | | (6,876) | |
| | | | | | | | |
| | | | | | | 332,022 | |
Credit Suisse International: | | | | | | | |
Australian Dollar | 9/2/21 | 5,032,504 | | (3,852,946) | | (78,622) | |
Euro | 9/2/21 | 309,744 | | (376,093) | | (8,382) | |
Norwegian Krone | 9/2/21 | (74,392,407) | | 8,790,000 | | 142,586 | |
Swiss Franc | 9/2/21 | 1,067,000 | | (1,181,648) | | (26,125) | |
| | | | | | | | |
| | | | | | | 29,457 | |
Goldman Sachs & Co: | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Mexican Peso | 9/2/21 | 259,261,290 | $ | (12,976,170) | | (69,682) | |
HSBC Securities (USA), Inc.: | | | | | | | |
British Pound | 9/2/21 | 4,167,251 | | (5,875,999) | | (111,576) | |
Canadian Dollar | 9/2/21 | 230,000 | | (189,877) | | (4,305) | |
Euro | 9/2/21 | 11,810,378 | | (14,315,387) | | (294,734) | |
Euro | 9/2/21 | (674,590) | | 806,088 | | 5,251 | |
Japanese Yen | 9/2/21 | 251,202,000 | | (2,278,933) | | (16,237) | |
Mexican Peso | 9/2/21 | (15,174,000) | | 748,152 | | (7,236) | |
New Zealand Dollar | 9/2/21 | (1,984,000) | | 1,415,981 | | 29,875 | |
Norwegian Krone | 9/2/21 | 21,257,055 | | (2,534,913) | | (63,982) | |
| | | | | | | | |
| | | | | | | (462,944) | |
JPMorgan Chase Bank, National Association: | | | | | | | |
Australian Dollar | 9/2/21 | 353,000 | | (270,250) | | (5,504) | |
British Pound | 9/2/21 | 8,394,097 | | (11,838,447) | | (227,166) | |
Canadian Dollar | 9/2/21 | 1,232,000 | | (1,016,981) | | (22,959) | |
Euro | 9/2/21 | 12,916,348 | | (15,570,661) | | (237,059) | |
Euro | 9/2/21 | (7,662,086) | | 9,174,160 | | 78,138 | |
Japanese Yen | 9/2/21 | (382,549,380) | | 3,470,308 | | 24,503 | |
Korean Won | 9/2/21 | 3,232,375,000 | | (2,894,967) | | (19,844) | |
Mexican Peso | 9/2/21 | (170,260,767) | | 8,396,777 | | (79,107) | |
Norwegian Krone | 9/2/21 | 50,803,173 | | (6,056,423) | | (151,035) | |
| | | | | | | | |
| | | | | | | (640,033) | |
Morgan Stanley & Co: | | | | | | | |
Australian Dollar | 9/2/21 | (955,606) | | 731,834 | | 15,140 | |
British Pound | 9/2/21 | (692,672) | | 976,788 | | 18,638 | |
Euro | 9/2/21 | 1,770,274 | | (2,149,593) | | (48,018) | |
Euro | 9/2/21 | (376,000) | | 456,657 | | 10,289 | |
Israeli Shekel | 9/2/21 | 1,180,000 | | (362,975) | | (330) | |
Japanese Yen | 9/2/21 | (93,000,000) | | 839,518 | | 1,822 | |
Norwegian Krone | 9/2/21 | 24,382,754 | | (2,908,285) | | (74,020) | |
Polish Zloty | 9/2/21 | 3,745,000 | | (1,018,304) | | (35,207) | |
Swiss Franc | 9/2/21 | 161,000 | | (178,342) | | (3,985) | |
| | | | | | | | |
| | | | | | | (115,671) | |
Total | | | | | $ | (519,279) | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
Schedule of Futures
| | | | | | | | | | | | | | |
Description | | Number of Contracts | | Expiration Date | | Value and Notional Amount | | Unrealized Appreciation/ (Depreciation) | | Variation Margin Asset/(Liability) | | |
Futures Purchased: | | | | | | | | | | | | |
Euro-BTP | | 10 | | 9/10/21 | $ | 1,795,127 | $ | 12,604 | $ | 7,706 | |
Ultra Long Term US Treasury Bond | | 12 | | 9/30/21 | | 2,312,250 | | 82,500 | | 13,500 | |
Total - Futures Purchased | | | | | | | | 95,104 | | 21,206 | | |
Futures Sold: | | | | | | | | | | | | |
Long Gilt | | 131 | | 9/30/21 | | (23,210,052) | | (54,424) | | (25,366) | |
Total | | | | | | | $ | 40,680 | $ | (4,160) | | |
| | | | | | | | | | | | | | |
Schedule of Centrally Cleared Interest Rate Swaps |
Payments made by Fund | Payments received by Fund | Payment Frequency | | Maturity Date | | Notional Amount | | | Premiums Paid/ (Received) | | Unrealized Appreciation/ (Depreciation) | | Variation Margin Asset/(Liability) |
EURIBOR 6M | (0.2451)% Fixed Rate | Annual | | 1/8/31 | | 29,200,000 | EUR | $ | 750 | $ | (1,012,557) | $ | 99,824 |
0.0050% Fixed Rate | EURIBOR 6M | Annual | | 1/9/51 | | 4,900,000 | EUR | | 750 | | 770,213 | | (44,340) |
(0.4610)% Fixed Rate | EURIBOR 6M | Annual | | 1/8/26 | | 29,600,000 | EUR | | 750 | | 262,252 | | (29,532) |
CDOR 3M | 0.9023% Fixed Rate | Semiannual | | 2/8/24 | | 136,530,000 | CAD | | - | | (648,847) | | (11,823) |
ICE LIBOR CHF 6M | (0.4652)% Fixed Rate | Annual | | 2/10/25 | | 83,500,000 | CHF | | - | | (154,369) | | 30,606 |
Total | | | | | | | | $ | 2,250 | $ | (783,308) | $ | 44,735 |
| | | | | | | | | | | | | | |
Schedule of Centrally Cleared Inflation Swaps |
Payments made by Fund | Payments received by Fund | Payment Frequency | | Maturity Date | | Notional Amount | | | Premiums Paid/ (Received) | | Unrealized Appreciation/ (Depreciation) | | Variation Margin Asset/(Liability) |
UK RPI 10Y | 3.7340% Fixed Rate | At Maturity | | 5/15/31 | | 10,300,000 | GBP | | 358 | | (6,885) | | 80,126 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of June 30, 2021.
| | | | | | | | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of June 30, 2021 |
| | | | | | | | | | | |
| | | | | Currency
Contracts | | Inflation
Contracts | | Interest Rate
Contracts | | Total |
Asset Derivatives: | | | | | | | | | |
Forward foreign currency exchange contracts | | | $1,920,002 | | $ - | | $ - | | $1,920,002 |
Variation margin receivable on futures contracts | | | - | | - | | 21,206 | | 21,206 |
Variation margin receivable on swaps | | | - | | 80,126 | | 130,430 | | 210,556 |
| | | | | | | | | | |
Total Asset Derivatives | | | $1,920,002 | | $ 80,126 | | $ 151,636 | | $2,151,764 |
Liability Derivatives: | | | | | | | | | |
Forward foreign currency exchange contracts | | | $2,439,281 | | $ - | | $ - | | $2,439,281 |
Variation margin payable on futures contracts | | | - | | - | | 25,366 | | 25,366 |
Variation margin payable on swaps | | | - | | - | | 85,695 | | 85,695 |
| | | | | | | | | | |
Total Liability Derivatives | | | $2,439,281 | | $ - | | $ 111,061 | | $2,550,342 |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended June 30, 2021.
| | | | | | | | | | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended June 30, 2021 |
| | | | | | | | | | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Credit
Contracts | | Currency
Contracts | | Inflation
Contracts | | Interest Rate
Contracts | | Total |
Futures contracts | | $ - | | $ - | | $ - | | $ 1,437,969 | | $ 1,437,969 |
Forward foreign currency exchange contracts | | - | | (1,978,686) | | - | | - | | (1,978,686) |
Purchased options contracts | | - | | (203,174) | | - | | - | | (203,174) |
Swap contracts | | (19,773) | | - | | - | | (959,084) | | (978,857) |
| | | | | | | | | | | | | |
Total | | $(19,773) | | $(2,181,860) | | $ - | | $ 478,885 | | $(1,722,748) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Credit
Contracts | | Currency
Contracts | | Inflation
Contracts | | Interest Rate
Contracts | | Total |
Futures contracts | | $ - | | $ - | | $ - | | $ 40,680 | | $ 40,680 |
Forward foreign currency exchange contracts | | - | | (285,902) | | - | | - | | (285,902) |
Purchased options contracts | | - | | 203,166 | | - | | - | | 203,166 |
Swap contracts | | - | | - | | (6,885) | | (877,289) | | (884,174) |
| | | | | | | | | | | | | |
Total | | $ - | | $ (82,736) | | $ (6,885) | | $ (836,609) | | $ (926,230) |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Bond Fund
Schedule of Investments
June 30, 2021
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
Average Ending Monthly Market Value of Derivative Instruments During the Year Ended June 30, 2021 |
| |
| Market Value(a) |
Credit default swaps, buy protection | $ (73,396) |
Forward foreign currency exchange contracts, purchased | 103,731,246 |
Forward foreign currency exchange contracts, sold | 93,964,479 |
Futures contracts, purchased | 3,714,656 |
Futures contracts, sold | 13,073,381 |
Interest rate swaps, pay fixed rate/receive floating rate | 426,803 |
Interest rate swaps, receive fixed rate/pay floating rate | (1,078,673) |
Inflation swaps, receive fixed rate/pay floating rate | (9,863) |
Purchased options contracts, put | 1 |
| | |
(a) Forward foreign currency exchange contracts are reported as the average ending monthly currency amount purchased or sold. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson Global Bond Fund
Notes to Schedule of Investments and Other Information
| | |
Bloomberg Barclays Global Aggregate Bond Index | Bloomberg Barclays Global Aggregate Bond Index is a broad-based measure of the global investment grade fixed-rate debt markets. |
| | |
CDOR | Canadian Dollar Offered Rate |
EURIBOR | Euro Interbank Offered Rate |
ICE | Intercontinental Exchange |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
PJSC | Private Joint Stock Company |
PLC | Public Limited Company |
SOFR | Secured Overnight Financing Rate |
TBA | (To Be Announced) Securities are purchased/sold on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement when specific mortgage pools are assigned. |
UK RPI | United Kingdom Retail Price Index |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the year ended June 30, 2021 is $37,256,442, which represents 15.2% of net assets. |
| | |
‡ | Variable or floating rate security. Rate shown is the current rate as of June 30, 2021. Certain variable rate securities are not based on a published reference rate and spread; they are determined by the issuer or agent and current market conditions. Reference rate is as of reset date and may vary by security, which may not indicate a reference rate and/or spread in their description. |
| | |
ºº | Rate shown is the 7-day yield as of June 30, 2021. |
| | |
µ | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. The date indicated, if any, represents the next call date. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Henderson Global Bond Fund
Notes to Schedule of Investments and Other Information
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Asset-Backed/Commercial Mortgage-Backed Securities | $ | - | $ | 3,906,951 | $ | - |
Corporate Bonds | | - | | 85,387,466 | | - |
Foreign Government Bonds | | - | | 93,562,606 | | - |
Inflation-Indexed Bonds | | - | | 11,000,890 | | - |
Mortgage-Backed Securities | | - | | 13,967,321 | | - |
United States Treasury Notes/Bonds | | - | | 29,851,283 | | - |
Total Investments in Securities | $ | - | $ | 237,676,517 | $ | - |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 1,920,002 | | - |
Variation Margin Receivable on Futures Contracts | | 21,206 | | - | | - |
Variation Margin Receivable on Swaps | | - | | 210,556 | | - |
Total Assets | $ | 21,206 | $ | 239,807,075 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 2,439,281 | $ | - |
Variation Margin Payable on Futures Contracts | | 25,366 | | - | | - |
Variation Margin Payable on Swaps | | - | | 85,695 | | - |
Total Liabilities | $ | 25,366 | $ | 2,524,976 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Futures, certain written options on futures, and centrally cleared swap contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Written options, written swaptions, and other swap contracts are reported at their market value at measurement date. |
Janus Henderson Global Bond Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Investments, at value (cost $230,863,303) | | $ | 237,676,517 | |
| Cash | | | 5,256,717 | |
| Deposits with brokers for centrally cleared derivatives | | | 1,800,451 | |
| Deposits with brokers for futures | | | 1,170,000 | |
| Forward foreign currency exchange contracts | | | 1,920,002 | |
| Cash denominated in foreign currency (cost $2,276) | | | 2,276 | |
| Receivable for variation margin on swaps | | | 210,556 | |
| Receivable for variation margin on futures contracts | | | 21,206 | |
| Non-interested Trustees' deferred compensation | | | 5,967 | |
| Receivables: | | | | |
| | Interest | | | 1,291,007 | |
| | Investments sold | | | 662,806 | |
| | Fund shares sold | | | 39,615 | |
| | Dividends from affiliates | | | 144 | |
| Other assets | | | 2,958 | |
Total Assets | | | 250,060,222 | |
Liabilities: | | | | |
| Forward foreign currency exchange contracts | | | 2,439,281 | |
| Payable for variation margin for swaps | | | 85,695 | |
| Payable for variation margin for futures contracts | | | 25,366 | |
| Payables: | | | — | |
| | Investments purchased | | | 2,652,599 | |
| | TBA investments purchased | | | 512,712 | |
| | Fund shares repurchased | | | 184,267 | |
| | Advisory fees | | | 86,076 | |
| | Professional fees | | | 60,316 | |
| | Foreign tax liability | | | 28,110 | |
| | Transfer agent fees and expenses | | | 11,527 | |
| | Custodian fees | | | 7,850 | |
| | Non-interested Trustees' deferred compensation fees | | | 5,967 | |
| | Dividends | | | 2,344 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 1,466 | |
| | Non-interested Trustees' fees and expenses | | | 979 | |
| | Affiliated fund administration fees payable | | | 512 | |
| | Accrued expenses and other payables | | | 51,123 | |
Total Liabilities | | | 6,156,190 | |
Net Assets | | $ | 243,904,032 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Global Bond Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 237,552,580 | |
| Total distributable earnings (loss) (includes $28,110 of foreign capital gains tax) | | | 6,351,452 | |
Total Net Assets | | $ | 243,904,032 | |
Net Assets - Class A Shares | | $ | 1,692,689 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 168,137 | |
Net Asset Value Per Share(1) | | $ | 10.07 | |
Maximum Offering Price Per Share(2) | | $ | 10.57 | |
Net Assets - Class C Shares | | $ | 1,243,182 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 123,522 | |
Net Asset Value Per Share(1) | | $ | 10.06 | |
Net Assets - Class D Shares | | $ | 19,754,409 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,964,539 | |
Net Asset Value Per Share | | $ | 10.06 | |
Net Assets - Class I Shares | | $ | 66,581,032 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,604,167 | |
Net Asset Value Per Share | | $ | 10.08 | |
Net Assets - Class N Shares | | $ | 145,332,654 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 14,458,186 | |
Net Asset Value Per Share | | $ | 10.05 | |
Net Assets - Class S Shares | | $ | 20,022 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,003 | |
Net Asset Value Per Share | | $ | 10.00 | |
Net Assets - Class T Shares | | $ | 9,280,044 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 935,992 | |
Net Asset Value Per Share | | $ | 9.91 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/95.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
22 | JUNE 30, 2021 |
Janus Henderson Global Bond Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Interest | $ | 4,970,971 | |
| Dividends from affiliates | | 9,178 | |
| Affiliated securities lending income, net | | 418 | |
| Unaffiliated securities lending income, net | | 30 | |
| Other income | | 9,081 | |
| Foreign tax withheld | | (89,022) | |
Total Investment Income | | 4,900,656 | |
Expenses: | | | |
| Advisory fees | | 1,487,405 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 4,617 | |
| | Class C Shares | | 14,666 | |
| | Class S Shares | | 100 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 25,217 | |
| | Class S Shares | | 101 | |
| | Class T Shares | | 84,696 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 1,680 | |
| | Class C Shares | | 1,238 | |
| | Class I Shares | | 40,155 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 151 | |
| | Class C Shares | | 93 | |
| | Class D Shares | | 4,905 | |
| | Class I Shares | | 1,698 | |
| | Class N Shares | | 4,098 | |
| | Class S Shares | | 10 | |
| | Class T Shares | | 448 | |
| Registration fees | | 121,220 | |
| Non-affiliated fund administration fees | | 83,774 | |
| Professional fees | | 67,305 | |
| Custodian fees | | 44,883 | |
| Shareholder reports expense | | 22,683 | |
| Affiliated fund administration fees | | 6,934 | |
| Non-interested Trustees’ fees and expenses | | 4,352 | |
| Other expenses | | 18,008 | |
Total Expenses | | 2,040,437 | |
Less: Excess Expense Reimbursement and Waivers | | (385,961) | |
Net Expenses | | 1,654,476 | |
Net Investment Income/(Loss) | | 3,246,180 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Global Bond Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 5,222,718 | |
| Investments in affiliates | | (61) | |
| Purchased options contracts | | (203,174) | |
| Forward foreign currency exchange contracts | | (1,978,686) | |
| Futures contracts | | 1,437,969 | |
| Swap contracts | | (978,857) | |
Total Net Realized Gain/(Loss) on Investments | | 3,499,909 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation (includes $(28,110) of foreign capital gains tax) | | 2,019,009 | |
| Investments in affiliates | | (176) | |
| Purchased options contracts | | 203,166 | |
| Forward foreign currency exchange contracts | | (285,902) | |
| Futures contracts | | 40,680 | |
| Swap contracts | | (884,174) | |
Total Change in Unrealized Net Appreciation/Depreciation | | 1,092,603 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 7,838,692 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
24 | JUNE 30, 2021 |
Janus Henderson Global Bond Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 3,246,180 | | $ | 3,121,280 | |
| Net realized gain/(loss) on investments | | 3,499,909 | | | 12,545,763 | |
| Change in unrealized net appreciation/depreciation | | 1,092,603 | | | (2,448,429) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 7,838,692 | | | 13,218,614 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (62,977) | | | (19,355) | |
| | Class C Shares | | (43,586) | | | (7,878) | |
| | Class D Shares | | (805,690) | | | (189,598) | |
| | Class I Shares | | (1,366,264) | | | (332,527) | |
| | Class N Shares | | (5,348,392) | | | (2,602,072) | |
| | Class S Shares | | (823) | | | (1,004) | |
| | Class T Shares | | (1,273,062) | | | (91,941) | |
Net Decrease from Dividends and Distributions to Shareholders | | (8,900,794) | | | (3,244,375) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 184,865 | | | 102,094 | |
| | Class C Shares | | (238,014) | | | (232,787) | |
| | Class D Shares | | 974,977 | | | 7,949,586 | |
| | Class I Shares | | 37,039,550 | | | 5,896,218 | |
| | Class N Shares | | (12,830,880) | | | (15,429,612) | |
| | Class S Shares | | (116,309) | | | (195,668) | |
| | Class T Shares | | (19,585,366) | | | 23,452,919 | |
Net Increase/(Decrease) from Capital Share Transactions | | 5,428,823 | | | 21,542,750 | |
Net Increase/(Decrease) in Net Assets | | 4,366,721 | | | 31,516,989 | |
Net Assets: | | | | | | |
| Beginning of period | | 239,537,311 | | | 208,020,322 | |
| End of period | $ | 243,904,032 | | $ | 239,537,311 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Global Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.10 | | | $9.63 | | | $9.40 | | | $9.54 | | | $9.84 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.11 | | | 0.12 | | | 0.14 | | | 0.23 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | 0.22 | | | 0.47 | | | 0.23 | | | (0.14) | | | (0.28) | |
| Total from Investment Operations | | 0.33 | | | 0.59 | | | 0.37 | | | 0.09 | | | (0.13) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.12) | | | (0.09) | | | — | | | — | |
| | Distributions (from capital gains) | | (0.23) | | | — | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | (0.05) | | | (0.23) | | | (0.17) | |
| Total Dividends and Distributions | | (0.36) | | | (0.12) | | | (0.14) | | | (0.23) | | | (0.17) | |
| Net Asset Value, End of Period | | $10.07 | | | $10.10 | | | $9.63 | | | $9.40 | | | $9.54 | |
| Total Return* | | 3.10% | | | 6.20% | | | 3.96% | | | 0.92% | | | (1.32)% | |
| Net Assets, End of Period (in thousands) | | $1,693 | | | $1,530 | | | $1,364 | | | $2,230 | | | $3,124 | |
| Average Net Assets for the Period (in thousands) | | $1,848 | | | $1,532 | | | $1,522 | | | $2,633 | | | $9,227 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.25% | | | 1.29% | | | 1.33% | | | 1.10% | | | 1.05% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.94% | | | 0.95% | | | 0.97% | | | 0.94% | | | 0.98% | |
| | Ratio of Net Investment Income/(Loss) | | 1.04% | | | 1.21% | | | 1.49% | | | 2.39% | | | 1.58% | |
| Portfolio Turnover Rate | | 63%(2) | | | 164%(2) | | | 248% | | | 249% | | | 210% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.11 | | | $9.64 | | | $9.41 | | | $9.54 | | | $9.85 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.03 | | | 0.04 | | | 0.07 | | | 0.16 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | 0.20 | | | 0.48 | | | 0.23 | | | (0.13) | | | (0.30) | |
| Total from Investment Operations | | 0.23 | | | 0.52 | | | 0.30 | | | 0.03 | | | (0.21) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | (0.05) | | | (0.05) | | | — | | | — | |
| | Distributions (from capital gains) | | (0.23) | | | — | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | (0.02) | | | (0.16) | | | (0.10) | |
| Total Dividends and Distributions | | (0.28) | | | (0.05) | | | (0.07) | | | (0.16) | | | (0.10) | |
| Net Asset Value, End of Period | | $10.06 | | | $10.11 | | | $9.64 | | | $9.41 | | | $9.54 | |
| Total Return* | | 2.15% | | | 5.41% | | | 3.19% | | | 0.33% | | | (2.16)% | |
| Net Assets, End of Period (in thousands) | | $1,243 | | | $1,491 | | | $1,646 | | | $2,422 | | | $3,334 | |
| Average Net Assets for the Period (in thousands) | | $1,489 | | | $1,525 | | | $1,849 | | | $2,908 | | | $4,557 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.01% | | | 2.03% | | | 2.04% | | | 1.80% | | | 1.80% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.67% | | | 1.69% | | | 1.71% | | | 1.65% | | | 1.72% | |
| | Ratio of Net Investment Income/(Loss) | | 0.30% | | | 0.46% | | | 0.74% | | | 1.68% | | | 0.93% | |
| Portfolio Turnover Rate | | 63%(2) | | | 164%(2) | | | 248% | | | 249% | | | 210% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
26 | JUNE 30, 2021 |
Janus Henderson Global Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.09 | | | $9.62 | | | $9.39 | | | $9.53 | | | $9.84 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.13 | | | 0.13 | | | 0.16 | | | 0.25 | | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | 0.22 | | | 0.48 | | | 0.23 | | | (0.14) | | | (0.30) | |
| Total from Investment Operations | | 0.35 | | | 0.61 | | | 0.39 | | | 0.11 | | | (0.12) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.14) | | | (0.11) | | | — | | | — | |
| | Distributions (from capital gains) | | (0.23) | | | — | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | (0.05) | | | (0.25) | | | (0.19) | |
| Total Dividends and Distributions | | (0.38) | | | (0.14) | | | (0.16) | | | (0.25) | | | (0.19) | |
| Net Asset Value, End of Period | | $10.06 | | | $10.09 | | | $9.62 | | | $9.39 | | | $9.53 | |
| Total Return* | | 3.32% | | | 6.43% | | | 4.18% | | | 1.12% | | | (1.24)% | |
| Net Assets, End of Period (in thousands) | | $19,754 | | | $18,928 | | | $10,293 | | | $12,026 | | | $10,045 | |
| Average Net Assets for the Period (in thousands) | | $21,961 | | | $13,105 | | | $10,705 | | | $11,262 | | | $10,889 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.93% | | | 1.00% | | | 0.92% | | | 0.90% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.73% | | | 0.74% | | | 0.76% | | | 0.75% | | | 0.78% | |
| | Ratio of Net Investment Income/(Loss) | | 1.24% | | | 1.37% | | | 1.68% | | | 2.55% | | | 1.90% | |
| Portfolio Turnover Rate | | 63%(2) | | | 164%(2) | | | 248% | | | 249% | | | 210% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.09 | | | $9.62 | | | $9.39 | | | $9.53 | | | $9.84 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.14 | | | 0.14 | | | 0.16 | | | 0.25 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | 0.23 | | | 0.48 | | | 0.23 | | | (0.13) | | | (0.31) | |
| Total from Investment Operations | | 0.37 | | | 0.62 | | | 0.39 | | | 0.12 | | | (0.12) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.15) | | | (0.11) | | | — | | | — | |
| | Distributions (from capital gains) | | (0.23) | | | — | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | (0.05) | | | (0.26) | | | (0.19) | |
| Total Dividends and Distributions | | (0.38) | | | (0.15) | | | (0.16) | | | (0.26) | | | (0.19) | |
| Net Asset Value, End of Period | | $10.08 | | | $10.09 | | | $9.62 | | | $9.39 | | | $9.53 | |
| Total Return* | | 3.55% | | | 6.47% | | | 4.24% | | | 1.17% | | | (1.19)% | |
| Net Assets, End of Period (in thousands) | | $66,581 | | | $29,927 | | | $22,953 | | | $25,421 | | | $31,136 | |
| Average Net Assets for the Period (in thousands) | | $40,487 | | | $21,968 | | | $22,886 | | | $31,326 | | | $33,938 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.85% | | | 0.85% | | | 0.88% | | | 0.82% | | | 0.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.70% | | | 0.70% | | | 0.71% | | | 0.69% | | | 0.73% | |
| | Ratio of Net Investment Income/(Loss) | | 1.32% | | | 1.45% | | | 1.74% | | | 2.62% | | | 1.94% | |
| Portfolio Turnover Rate | | 63%(2) | | | 164%(2) | | | 248% | | | 249% | | | 210% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 27 |
Janus Henderson Global Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.09 | | | $9.61 | | | $9.39 | | | $9.52 | | | $9.83 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.14 | | | 0.15 | | | 0.17 | | | 0.26 | | | 0.20 | |
| | Net realized and unrealized gain/(loss) | | 0.21 | | | 0.49 | | | 0.22 | | | (0.13) | | | (0.31) | |
| Total from Investment Operations | | 0.35 | | | 0.64 | | | 0.39 | | | 0.13 | | | (0.11) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.16) | | | (0.11) | | | — | | | — | |
| | Distributions (from capital gains) | | (0.23) | | | — | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | (0.06) | | | (0.26) | | | (0.20) | |
| Total Dividends and Distributions | | (0.39) | | | (0.16) | | | (0.17) | | | (0.26) | | | (0.20) | |
| Net Asset Value, End of Period | | $10.05 | | | $10.09 | | | $9.61 | | | $9.39 | | | $9.52 | |
| Total Return* | | 3.36% | | | 6.69% | | | 4.23% | | | 1.38% | | | (1.09)% | |
| Net Assets, End of Period (in thousands) | | $145,333 | | | $158,474 | | | $166,397 | | | $183,605 | | | $178,045 | |
| Average Net Assets for the Period (in thousands) | | $148,263 | | | $161,595 | | | $170,128 | | | $186,758 | | | $188,871 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.74% | | | 0.74% | | | 0.77% | | | 0.72% | | | 0.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.60% | | | 0.60% | | | 0.61% | | | 0.60% | | | 0.62% | |
| | Ratio of Net Investment Income/(Loss) | | 1.38% | | | 1.55% | | | 1.83% | | | 2.72% | | | 2.07% | |
| Portfolio Turnover Rate | | 63%(2) | | | 164%(2) | | | 248% | | | 249% | | | 210% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.10 | | | $9.64 | | | $9.41 | | | $9.54 | | | $9.85 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | 0.11 | | | 0.13 | | | 0.22 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 0.16 | | | 0.46 | | | 0.23 | | | (0.13) | | | (0.32) | |
| Total from Investment Operations | | 0.24 | | | 0.57 | | | 0.36 | | | 0.09 | | | (0.15) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.11) | | | (0.11) | | | (0.09) | | | — | | | — | |
| | Distributions (from capital gains) | | (0.23) | | | — | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | (0.04) | | | (0.22) | | | (0.16) | |
| Total Dividends and Distributions | | (0.34) | | | (0.11) | | | (0.13) | | | (0.22) | | | (0.16) | |
| Net Asset Value, End of Period | | $10.00 | | | $10.10 | | | $9.64 | | | $9.41 | | | $9.54 | |
| Total Return* | | 2.19% | | | 5.92% | | | 3.93% | | | 0.92% | | | (1.52)% | |
| Net Assets, End of Period (in thousands) | | $20 | | | $133 | | | $319 | | | $448 | | | $448 | |
| Average Net Assets for the Period (in thousands) | | $41 | | | $89 | | | $375 | | | $435 | | | $369 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 8.61% | | | 4.64% | | | 2.01% | | | 1.40% | | | 1.21% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.11% | | | 1.10% | | | 1.01% | | | 1.05% | | | 1.07% | |
| | Ratio of Net Investment Income/(Loss) | | 0.77% | | | 1.09% | | | 1.43% | | | 2.25% | | | 1.76% | |
| Portfolio Turnover Rate | | 63%(2) | | | 164%(2) | | | 248% | | | 249% | | | 210% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
28 | JUNE 30, 2021 |
Janus Henderson Global Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | �� | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.10 | | | $9.63 | | | $9.40 | | | $9.53 | | | $9.84 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.11 | | | 0.13 | | | 0.15 | | | 0.24 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 0.07 | | | 0.47 | | | 0.23 | | | (0.13) | | | (0.30) | |
| Total from Investment Operations | | 0.18 | | | 0.60 | | | 0.38 | | | 0.11 | | | (0.13) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.13) | | | (0.10) | | | — | | | — | |
| | Distributions (from capital gains) | | (0.23) | | | — | | | — | | | — | | | — | |
| | Return of capital | | — | | | — | | | (0.05) | | | (0.24) | | | (0.18) | |
| Total Dividends and Distributions | | (0.37) | | | (0.13) | | | (0.15) | | | (0.24) | | | (0.18) | |
| Net Asset Value, End of Period | | $9.91 | | | $10.10 | | | $9.63 | | | $9.40 | | | $9.53 | |
| Total Return* | | 1.56% | | | 6.32% | | | 4.09% | | | 1.14% | | | (1.32)% | |
| Net Assets, End of Period (in thousands) | | $9,280 | | | $29,055 | | | $5,048 | | | $6,600 | | | $5,804 | |
| Average Net Assets for the Period (in thousands) | | $33,807 | | | $6,485 | | | $5,509 | | | $6,097 | | | $7,240 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.00% | | | 1.03% | | | 1.07% | | | 0.99% | | | 0.95% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.84% | | | 0.85% | | | 0.85% | | | 0.83% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 1.10% | | | 1.32% | | | 1.60% | | | 2.46% | | | 1.80% | |
| Portfolio Turnover Rate | | 63%(2) | | | 164%(2) | | | 248% | | | 249% | | | 210% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 29 |
Janus Henderson Global Bond Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Bond Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks total return, consistent with preservation of capital. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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
Janus Henderson Global Bond Fund
Notes to Financial Statements
programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with United States of America generally accepted accounting principles ("US GAAP").
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service
Janus Henderson Global Bond Fund
Notes to Financial Statements
approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Janus Henderson Global Bond Fund
Notes to Financial Statements
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends are declared daily and distributed monthly for the Fund. Realized capital gains, if any, are declared and distributed in December. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the year ended June 30, 2021 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or
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other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital's ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE
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shall be used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a forward currency contract is reported on the Statement of Operations (if applicable).
During the year, the Fund entered into forward currency contracts with the obligation to purchase foreign currencies in the future at an agreed upon rate in order to take a positive outlook on the related currency. These forward contracts seek to increase exposure to currency risk.
During the year, the Fund entered into forward currency contracts with the obligation to purchase foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
During the year, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to take a negative outlook on the related currency. These forward contracts seek to increase exposure to currency risk.
During the year, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts on commodities are valued at the settlement price on valuation date on the commodities exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used. Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
During the year, the Fund purchased interest rate futures to increase exposure to interest rate risk.
During the year, the Fund sold interest rate futures to decrease exposure to interest rate risk.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed upon price on or before a specified date. The purchaser pays a premium to the seller for this right. The seller has the corresponding obligation to sell or buy a financial instrument if the purchaser (owner) "exercises" the option. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid. Upon expiration, or closing of the option transaction, a realized gain or loss is reported on the Statement of Operations (if applicable). The difference between the premium paid/received and the market value of the option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation
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is reported on the Statement of Operations (if applicable). Option contracts are typically valued using an approved vendor’s option valuation model. To the extent reliable market quotations are available, option contracts are valued using market quotations. In cases when an approved vendor cannot provide coverage for an option and there is no reliable market quotation, a broker quotation or an internal valuation using the Black-Scholes model, the Cox-Rubinstein Binomial Option Pricing Model, or other appropriate option pricing model is used. Certain options contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities as “Variation margin receivable” or “Variation margin payable” (if applicable).
The Fund may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Fund generally invests in options to hedge against adverse movements in the value of portfolio holdings. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or unexpected adverse price movements, could render the Fund’s hedging strategy unsuccessful. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. The Fund may be subject to counterparty risk, interest rate risk, liquidity risk, equity risk, commodity risk, and currency risk in the normal course of pursuing its investment objective through its investments in options contracts.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded OTC expose the Fund to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
The Fund may purchase put options to hedge against a decline in the value of its portfolio. By using put options in this way, the Fund will reduce any profit it might otherwise have realized in the underlying security by the amount of the premium paid for the put option and by transaction costs. The Fund may purchase call options to hedge against an increase in the price of securities that it may buy in the future. The premium paid for the call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises sufficiently, the option may expire worthless to the Fund. The risk in buying options is that the Fund pays a premium whether or not the options are exercised. Options purchased are reported in the Schedule of Investments (if applicable).
During the year, the Fund purchased put options on foreign exchange rates vs. the U.S. dollar in order to decrease foreign currency exposure and increase U.S. dollar exposure where decreasing this exposure via the options market was most attractive.
There were no purchased options held at June 30, 2021.
Swaps
Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a day to more than one year to exchange one set of cash flows for another. The most significant factor in the performance of swap agreements is the change in value of the specific index, security, or currency, or other factors that determine the amounts of payments due to and from the Fund. The use of swaps is a highly specialized activity which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. Swap transactions may in some instances involve the delivery of securities or other underlying assets by the Fund or its counterparty to collateralize obligations under the swap. If the other party to a swap that is not collateralized defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. Swap agreements entail the risk that a party will default on its payment obligations to the Fund. If the other party to a swap defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If the Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return.
Swap agreements also bear the risk that the Fund will not be able to meet its obligation to the counterparty. Swap agreements are typically privately negotiated and entered into in the OTC market. However, certain swap agreements are required to be cleared through a clearinghouse and traded on an exchange or swap execution facility. Swaps that are required to be cleared are required to post initial and variation margins in accordance with the exchange requirements. Regulations enacted require the Fund to centrally clear certain interest rate and credit default index swaps through a clearinghouse or central counterparty (“CCP”). To clear a swap with a CCP, the Fund will submit the swap to, and post collateral with, a futures clearing merchant (“FCM”) that is a clearinghouse member. Alternatively, the
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Fund may enter into a swap with a financial institution other than the FCM (the “Executing Dealer”) and arrange for the swap to be transferred to the FCM for clearing. The Fund may also enter into a swap with the FCM itself. The CCP, the FCM, and the Executing Dealer are all subject to regulatory oversight by the U.S. Commodity Futures Trading Commission (“CFTC”). A default or failure by a CCP or an FCM, or the failure of a swap to be transferred from an Executing Dealer to the FCM for clearing, may expose the Fund to losses, increase its costs, or prevent the Fund from entering or exiting swap positions, accessing collateral, or fully implementing its investment strategies. The regulatory requirement to clear certain swaps could, either temporarily or permanently, reduce the liquidity of cleared swaps or increase the costs of entering into those swaps.
Index swaps, interest rate swaps, inflation swaps and credit default swaps are valued using an approved vendor supplied price. Basket swaps are valued using a broker supplied price. Equity swaps that consist of a single underlying equity are valued either at the closing price, the latest bid price, or the last sale price on the primary market or exchange it trades. The market value of swap contracts are aggregated by positive and negative values and are disclosed separately as an asset or liability on the Fund’s Statement of Assets and Liabilities (if applicable). Realized gains and losses are reported on the Fund’s Statement of Operations (if applicable). The change in unrealized net appreciation or depreciation during the year is included in the Statement of Operations (if applicable).
The Fund’s maximum risk of loss from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund’s exposure to the counterparty.
The Fund may enter into various types of credit default swap agreements, including OTC credit default swap agreements, for investment purposes, to add leverage to its Fund, or to hedge against widening credit spreads on high-yield/high-risk bonds. Credit default swaps are a specific kind of counterparty agreement that allow 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. Credit default swaps could result in losses if the Fund does not correctly evaluate the creditworthiness of the company or companies on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject to illiquidity risk, counterparty risk, and credit risk. The Fund will generally incur a greater degree of risk when it sells a credit default swap than when it purchases a credit default swap. As a buyer of a credit default swap, the Fund may lose its investment and recover nothing should no credit event occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event were to occur, the value of any deliverable obligation received by the Fund, coupled with the upfront or periodic payments previously received, may be less than what it pays to the buyer, resulting in a loss of value to the Fund.
As a buyer of credit protection, the Fund is entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract in the event of a default or other credit event by a third party, such as a U.S. or foreign issuer, on the debt obligation. In return, the Fund as buyer would pay to the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no credit event occurs, the Fund would have spent the stream of payments and potentially received no benefit from the contract.
If the Fund is the seller of credit protection against a particular security, the Fund would receive an up-front or periodic payment to compensate against potential credit events. As the seller in a credit default swap contract, the Fund would be required to pay the par value (the “notional value”) (or other agreed-upon value) of a referenced debt obligation to the counterparty in the event of a default by a third party, such as a U.S. or foreign corporate issuer, on the debt obligation. In return, the Fund would receive from the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, the Fund would keep the stream of payments and would have no payment obligations. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional value of the swap. The maximum potential amount of future payments (undiscounted) that the Fund as a seller could be required to make in a credit default transaction would be the notional amount of the agreement.
The Fund may invest in CDXs. A CDX is a swap on an index of credit default swaps. CDXs allow an investor to manage credit risk or take a position on a basket of credit entities (such as credit default swaps or commercial mortgage-backed securities) in a more efficient manner than transacting in a single-name CDS. If a credit event occurs in one of
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the underlying companies, the protection is paid out via the delivery of the defaulted bond by the buyer of protection in return for a payment of notional value of the defaulted bond by the seller of protection or it may be settled through a cash settlement between the two parties. The underlying company is then removed from the index. If the Fund holds a long position in a CDX, the Fund would indirectly bear its proportionate share of any expenses paid by a CDX. A Fund holding a long position in CDXs typically receives income from principal or interest paid on the underlying securities. By investing in CDXs, the Fund could be exposed to illiquidity risk, counterparty risk, and credit risk of the issuers of the underlying loan obligations and of the CDX markets. If there is a default by the CDX counterparty, the Fund will have contractual remedies pursuant to the agreements related to the transaction. CDXs also bear the risk that the Fund will not be able to meet its obligation to the counterparty.
During the year, the Fund purchased protection via the credit default swap market in order to reduce credit risk exposure to individual corporates, countries and/or credit indices where reducing this exposure via the cash bond market was less attractive.
There were no credit default swaps held at June 30, 2021.
The Fund’s use of interest rate swaps involves investment techniques and risks different from those associated with ordinary portfolio security transactions. Interest rate swaps do not involve the delivery of securities, other underlying assets, or principal. 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). Interest rate swaps may result in potential losses if interest rates do not move as expected or if the counterparties are unable to satisfy their obligations. Interest rate swaps are generally entered into on a net basis. Accordingly, the risk of loss with respect to interest rate swaps is limited to the net amount of interest payments that the Fund is contractually obligated to make.
During the year, the Fund entered into interest rate swaps paying a floating interest rate and receiving a fixed interest rate in order to increase interest rate risk (duration) exposure. As interest rates fall, the Fund benefits by paying a lower future floating rate, while receiving a fixed rate that has not decreased.
The Fund may enter into inflation swaps to add protection from adverse movements in the rate of inflation. Inflation-linked swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of fixed rate payments for floating rate payments or an exchange of floating rate payments based on two different reference indices). By design, one of the reference indices is an inflation index. An inflation swap may result in potential losses if inflation does not move as expected or if the counterparties are unable to satisfy their obligations. An inflation swap held long by a Fund can potentially lose value if the rate of inflation over the life of the swap is less than the fixed rate that the Fund agrees to pay at the initiation of the swap.
During the year, the Fund entered into inflation swaps paying a floating interest rate linked to an inflation index; i.e. actual realized inflation and receiving a fixed interest rate in order to decrease the Fund’s exposure to inflation. With lower inflation, the Fund benefits by paying a lower floating rate, while receiving a higher fixed rate that has not decreased.
3. Other Investments and Strategies
Additional Investment Risk
The Fund may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes, or adverse developments specific to the issuer.
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-
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related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
Within the parameters of its specific investment policies, the Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging market countries.” Such countries include but are not limited to countries included in the MSCI Emerging Markets IndexSM. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a
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large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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. Similarly, issuers in such markets may not be subject to regulatory, accounting, auditing, and financial reporting and recordkeeping standards comparable to those to which U.S. companies are subject. There is a risk in developing countries that a current or future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, sanctions or imposition of restrictions by various governmental entities on investment and trading, or creation of government monopolies, any of which may have a detrimental effect on the Fund’s investments. In addition, the Fund’s investments may be denominated in foreign currencies and therefore, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Fund’s investments. To the extent that the Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on the Fund’s performance. Developing countries may also experience a higher level of exposure and vulnerability to the adverse effects of climate change. This can be attributed to both the geographic location of emerging market countries and/or a country’s lack of access to technology or resources to adjust and adapt to its effects. An increased occurrence and severity of natural disasters and extreme weather events such as droughts and decreased crop yields, heat waves, flooding and rising sea levels, and increased spread of disease, could cause harmful effects to the performance of affected economies. Additionally, foreign and emerging market risks, including, but not limited to, price controls, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, nationalization, and restrictions on repatriation of assets may be heightened to the extent the Fund invests in Chinese local market securities.
Inflation-Linked Securities
The Fund may invest in inflation-indexed bonds, including municipal inflation-indexed bonds and corporate inflation-indexed bonds, or in derivatives that are linked to these securities. Inflation-linked bonds are fixed-income securities that have a principal value that is periodically adjusted according to the rate of inflation. If an index measuring inflation falls, the principal value of inflation-indexed bonds will typically be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Because of their inflation adjustment feature, inflation-linked bonds typically have lower yields than conventional fixed-rate bonds. In addition, inflation-linked bonds also normally decline in price when real interest rates rise. In the event of deflation, when prices decline over time, the principal and income of inflation-linked bonds would likely decline, resulting in losses to the Fund.
In the case of Treasury Inflation-Protected Securities, also known as TIPS, repayment of original bond principal upon maturity (as adjusted for inflation) is guaranteed by the U.S. Treasury. For inflation-linked bonds that do not provide a similar guarantee, the adjusted principal value of the inflation-linked bond repaid at maturity may be less than the original principal. Other non-U.S. sovereign governments also issue inflation-linked securities (sometimes referred to as “linkers”) that are tied to their own local consumer price indices. In certain of these non-U.S. jurisdictions, the repayment of the original bond principal upon the maturity of an inflation-linked bond is not guaranteed, allowing for the amount of the bond repaid at maturity to be less than par. Inflation-linked bonds may also be issued by, or related to, sovereign governments of other developed countries, emerging market countries, or companies or other entities not affiliated with governments.
Mortgage- and Asset-Backed Securities
Mortgage- and asset-backed securities represent interests in “pools” of commercial or residential mortgages or other assets, including consumer and commercial loans or receivables. The Fund may purchase fixed or variable rate commercial or residential mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. Ginnie Mae’s guarantees are backed as to the timely payment of principal and interest by the full faith and credit of the U.S. Government. Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. Since that time, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases and Treasury and Federal Reserve purchases of their mortgage-backed securities.
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Notes to Financial Statements
The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac.
The Fund may also purchase other mortgage- and asset-backed securities through single- and multi-seller conduits, collateralized debt obligations, structured investment vehicles, and other similar securities. Asset-backed securities may be backed by various consumer obligations, including automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying loans are not paid, the securities’ issuer could be forced to sell the assets and recognize losses on such assets, which could impact your return. Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Mortgage- and asset-backed securities are subject to both extension risk, where borrowers pay off their debt obligations more slowly in times of rising interest rates, and prepayment risk, where borrowers pay off their debt obligations sooner than expected in times of declining interest rates. These risks may reduce the Fund’s returns. In addition, investments in mortgage- and asset-backed securities, including those comprised of subprime mortgages, may be subject to a higher degree of credit risk, valuation risk, extension risk (if interest rates rise), and liquidity risk than various other types of fixed-income securities. Additionally, although mortgage-backed securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that guarantors or insurers will meet their obligations.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment.
The following tables present gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of June 30, 2021” table located in the Fund’s Schedule of Investments.
Janus Henderson Global Bond Fund
Notes to Financial Statements
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Bank of America, National Association | $ | 241,162 | $ | (241,162) | $ | — | $ | — |
Barclays Capital, Inc. | | 400,946 | | (64,885) | | — | | 336,061 |
BNP Paribas | | 397,732 | | (173,508) | | — | | 224,224 |
Citibank, National Association | | 553,920 | | (221,898) | | — | | 332,022 |
Credit Suisse International | | 142,586 | | (113,129) | | — | | 29,457 |
HSBC Securities (USA), Inc. | | 35,126 | | (35,126) | | — | | — |
JPMorgan Chase Bank, National Association | | 102,641 | | (102,641) | | — | | — |
Morgan Stanley & Co | | 45,889 | | (45,889) | | — | | — |
| | | | | | | | | |
Total | $ | 1,920,002 | $ | (998,238) | $ | — | $ | 921,764 |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Bank of America, National Association | $ | 393,875 | $ | (241,162) | $ | — | $ | 152,713 |
Barclays Capital, Inc. | | 64,885 | | (64,885) | | — | | — |
BNP Paribas | | 173,508 | | (173,508) | | — | | — |
Citibank, National Association | | 221,898 | | (221,898) | | — | | — |
Credit Suisse International | | 113,129 | | (113,129) | | — | | — |
HSBC Securities (USA), Inc. | | 498,070 | | (35,126) | | — | | 462,944 |
JPMorgan Chase Bank, National Association | | 742,674 | | (102,641) | | — | | 640,033 |
Morgan Stanley & Co | | 161,560 | | (45,889) | | — | | 115,671 |
Goldman Sachs & Co | | 69,682 | | — | | — | | 69,682 |
| | | | | | | | | |
Total | $ | 2,439,281 | $ | (998,238) | $ | — | $ | 1,441,043 |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s
Janus Henderson Global Bond Fund
Notes to Financial Statements
custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
Real Estate Investing
The Fund may invest 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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the Securities and Exchange Commission (the "SEC"). If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to primarily invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations.
There were no securities on loan as of June 30, 2021.
Janus Henderson Global Bond Fund
Notes to Financial Statements
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt of less developed countries, 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 debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including, but not limited to, 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 debtor’s 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 debtor’s ability or willingness to timely service its debts. The 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 Fund’s 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 Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
TBA Commitments
The Fund may enter into “to be announced” or “TBA” commitments. TBAs are forward agreements for the purchase or sale of securities, including mortgage-backed securities, for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate, and mortgage terms. Although the particular TBA securities must meet industry-accepted “good delivery” standards, there can be no assurance that a security purchased on forward commitment basis will ultimately be issued or delivered by the counterparty. During the settlement period, the Fund will still bear the risk of any decline in the value of the security to be delivered. Because TBA commitments do not require the purchase and sale of identical securities, the characteristics of the security delivered to the Fund may be less favorable than the security delivered to the dealer. If the counterparty to a transaction fails to deliver the security, the Fund could suffer a loss.
To facilitate TBA commitments, the Fund is required to segregate or otherwise earmark liquid assets marked to market daily in an amount at least equal to such TBA commitments. Rules of the Financial Industry Regulatory Authority (“FINRA”) which are expected to be effective in October 2021, include mandatory margin requirements for TBA commitments which, in some circumstances, will require the Fund to also post collateral. These collateral requirements may increase costs associated with the Fund’s participation in the TBA market.
When-Issued, Delayed Delivery and Forward Commitment Transactions
The Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis. When purchasing a security on a when-issued, delayed delivery, or forward commitment basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made. Because the Fund is not required to pay for the security until the delivery date, these risks are in addition to the risks associated with the Fund’s other investments. If the other party to a transaction fails to deliver the securities, the Fund could miss a favorable price or yield opportunity. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases are outstanding, the purchases may result in a form of leverage. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases (including TBA commitments) are outstanding, the purchases may result in a form of leverage.
When the Fund has sold a security on a when-issued, delayed delivery, or forward commitment basis, the Fund does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to pay for the securities, the Fund could suffer a loss. Additionally, when selling a security on a when-issued, delayed delivery, or forward commitment basis without owning the security, the Fund will incur a loss if the security’s price appreciates in value such that the security’s price is above the agreed upon price on the settlement date. The Fund may dispose of or
Janus Henderson Global Bond Fund
Notes to Financial Statements
renegotiate a transaction after it is entered into, and may purchase or sell when-issued, delayed delivery or forward commitment securities before the settlement date, which may result in a gain or loss.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $1 Billion | 0.60 |
Next $1 Billion | 0.55 |
Over $2 Billion | 0.50 |
The Fund’s actual investment advisory fee rate for the reporting period was 0.60% of average annual net assets before any applicable waivers.
Janus Capital has entered into a personnel-sharing arrangement with its foreign (non-U.S.) affiliate, Janus Capital International Limited (UK) (“JCIL”), pursuant to which one or more employees of JCIL may also serve as “associated persons” of Janus Capital. In this capacity, such employees of JCIL are subject to the oversight and supervision of Janus Capital and may provide portfolio management, research, and related services to the Fund on behalf of Janus Capital. The responsibilities of both Janus Capital and JCIL under the participating affiliate arrangement are documented in a memorandum of understanding between the two entities.
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.59% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
Janus Henderson Global Bond Fund
Notes to Financial Statements
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Global Bond Fund
Notes to Financial Statements
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 4.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $427.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $85.
As of June 30, 2021, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
Janus Henderson Global Bond Fund
Notes to Financial Statements
| | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 98 | | 58 | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes (reduced by foreign tax liability).
Other book to tax differences primarily consist of deferred compensation, derivatives, and foreign currency contract adjustments. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 2,734,222 | $ 713,661 | $ - | $ - | $ - | $ (817,367) | $ 3,720,936 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships, and straddle loss deferrals.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 233,927,471 | $ 5,221,145 | $ (1,472,099) | $ 3,749,046 |
Information on the tax components of derivatives as of June 30, 2021 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (453,274) | $ - | $ (812,910) | $ (812,910) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash
Janus Henderson Global Bond Fund
Notes to Financial Statements
sale losses, foreign currency transactions, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 6,790,989 | $ 2,109,805 | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 3,244,375 | $ - | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ (1) | $ (1,561,807) | $ 1,561,808 |
Janus Henderson Global Bond Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 85,441 | $ 890,797 | | 97,284 | $ 950,378 |
Reinvested dividends and distributions | 5,452 | 56,932 | | 1,971 | 19,296 |
Shares repurchased | (74,140) | (762,864) | | (89,505) | (867,580) |
Net Increase/(Decrease) | 16,753 | $ 184,865 | | 9,750 | $ 102,094 |
Class C Shares: | | | | | |
Shares sold | 84,218 | $ 886,107 | | 47,244 | $ 456,402 |
Reinvested dividends and distributions | 3,802 | 39,863 | | 637 | 6,231 |
Shares repurchased | (112,008) | (1,163,984) | | (71,230) | (695,420) |
Net Increase/(Decrease) | (23,988) | $ (238,014) | | (23,349) | $ (232,787) |
Class D Shares: | | | | | |
Shares sold | 1,361,672 | $ 14,107,767 | | 1,918,252 | $ 18,783,809 |
Reinvested dividends and distributions | 75,680 | 789,323 | | 18,639 | 182,940 |
Shares repurchased | (1,347,866) | (13,922,113) | | (1,131,438) | (11,017,163) |
Net Increase/(Decrease) | 89,486 | $ 974,977 | | 805,453 | $ 7,949,586 |
Class I Shares: | | | | | |
Shares sold | 5,027,695 | $ 51,411,081 | | 2,027,986 | $ 19,914,808 |
Reinvested dividends and distributions | 131,359 | 1,365,287 | | 33,919 | 332,125 |
Shares repurchased | (1,519,919) | (15,736,818) | | (1,482,561) | (14,350,715) |
Net Increase/(Decrease) | 3,639,135 | $ 37,039,550 | | 579,344 | $ 5,896,218 |
Class N Shares: | | | | | |
Shares sold | 1,837,225 | $ 19,027,068 | | 1,593,108 | $ 15,491,114 |
Reinvested dividends and distributions | 513,813 | 5,348,381 | | 266,195 | 2,602,072 |
Shares repurchased | (3,603,557) | (37,206,329) | | (3,454,671) | (33,522,798) |
Net Increase/(Decrease) | (1,252,519) | $(12,830,880) | | (1,595,368) | $(15,429,612) |
Class S Shares: | | | | | |
Shares sold | 202 | $ 2,086 | | 11,146 | $ 110,789 |
Reinvested dividends and distributions | 79 | 823 | | 102 | 1,004 |
Shares repurchased | (11,471) | (119,218) | | (31,135) | (307,461) |
Net Increase/(Decrease) | (11,190) | $ (116,309) | | (19,887) | $ (195,668) |
Class T Shares: | | | | | |
Shares sold | 1,833,139 | $ 18,951,778 | | 2,606,785 | $ 25,921,844 |
Reinvested dividends and distributions | 119,982 | 1,253,179 | | 8,808 | 87,167 |
Shares repurchased | (3,894,851) | (39,790,323) | | (262,187) | (2,556,092) |
Net Increase/(Decrease) | (1,941,730) | $(19,585,366) | | 2,353,406 | $ 23,452,919 |
7. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$119,334,230 | $ 134,888,884 | $ 31,639,189 | $ 12,578,415 |
Janus Henderson Global Bond Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Global Bond Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Global Bond Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Bond Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Global Bond Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Global Bond Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Global Bond Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Bond Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Global Bond Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Global Bond Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Global Bond Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Global Bond Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Global Bond Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Global Bond Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Global Bond Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Global Bond Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Global Bond Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Global Bond Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Global Bond Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Section 163(j) Interest Dividend | 75% |
Capital Gain Distributions | $2,109,805 |
Janus Henderson Global Bond Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Global Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Bond Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Global Bond Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Global Bond Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Bond Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Global Bond Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Helen Anthony
151 Detroit Street
Denver, CO 80206
DOB: 1974 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Bond Fund | 6/20-Present | Portfolio Manager for other Janus Henderson accounts. |
Nick Maroutsos
151 Detroit Street
Denver, CO 80206
DOB: 1974 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Bond Fund | 6/20-Present | Co-Head of Global Bonds of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. Formerly, Portfolio Manager at Voya Financial (2000-2011). |
Andrew Mulliner
151 Detroit Street
Denver, CO 80206
DOB:1983 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Bond Fund | 1/19-Present | Head of Global Aggregate Strategies of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Janus Henderson Global Bond Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
| | | | |
Janus Henderson Global Bond Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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| | | | |
This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93023 08-21 |
| | | |
| | | |
| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson Global Income Managed Volatility Fund |
| | |
| | Janus Investment Fund |
| |
| | | |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Income Managed Volatility Fund
Janus Henderson Global Income Managed Volatility Fund (unaudited)
| | | | | | |
FUND SNAPSHOT Intech’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | | | | | sub-advised by Intech Investment Management LLC |
| | | |
PERFORMANCE OVERVIEW
For the 12-month period ended June 30, 2021, Janus Henderson Global Income Managed Volatility Fund’s Class I Shares returned 20.45%. This compares to the 39.04% return posted by the MSCI World IndexSM, the Fund’s primary benchmark, and a 27.24% return for its secondary benchmark, the MSCI World High Dividend Yield Index.
INVESTMENT STRATEGY
Intech’s mathematical investment process is designed to determine potentially more efficient equity weightings of the securities in the benchmark index, utilizing a specific mathematical optimization and disciplined rebalancing routine. Rather than trying to predict the future direction of stock prices, the process seeks to use the volatility and correlation characteristics of stocks to construct portfolios.
The investment process begins with the stocks in the MSCI World High Dividend Yield Index. Intech’s investment process aims to capture stocks’ natural volatility through a rebalancing mechanism based on estimates of relative volatility and correlation in order to outperform the benchmark index over the long term. Within specific risk constraints, the investment process will tend to balance risk reduction with diversification potential captured through periodic rebalancing. Once the target proportions are determined and the portfolio is constructed, it is then rebalanced to those target proportions and re-optimized on a periodic basis. The Janus Henderson Global Income Managed Volatility Fund focuses on seeking an excess return above the benchmark, while also providing downside protection in down markets with upside participation in rising markets for greater performance consistency across changing market environments.
PERFORMANCE REVIEW
Global equity markets rebounded strongly and quickly recovered the losses suffered from the drawdown amid the COVID crisis with the MSCI World Index gaining over 39% over the past 12 months. The sharp rally that began in the second half of 2020 continued into 2021 despite concerns of inflation and uncertainty surrounding future stimulus efforts. Overall, yield-oriented segments lagged the broad market during the period.
The Fund was negatively impacted by its overall defensive positioning in what was generally a risk-on environment during the period. In particular, an average overweight to lower-beta stocks and underweight to higher-beta stocks was a headwind on relative performance as higher-beta stocks generally outperformed over the past 12 months.
From a sector perspective, while an average underweight to health care contributed, the Fund’s average overweights to consumer staples and communication services detracted from overall relative performance. Adverse stock selection also detracted from the Fund’s relative performance during the period, particularly within the consumer staples, financials and utilities sectors.
OUTLOOK
Because Intech does not conduct traditional economic or fundamental analysis, Intech has no view on individual stocks, sectors, economic, or market conditions.
Managing downside exposure potentially allows for returns to compound and improve risk-adjusted returns over time. Over the long term, we believe that by providing downside protection in down markets with upside participation in rising markets, the Fund will achieve its investment objective of producing an excess return over the benchmark with lower absolute risk. Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. As Intech’s ongoing research efforts yield modest improvements, we will
Janus Henderson Global Income Managed Volatility Fund (unaudited)
continue implementing changes that we believe are likely to improve the long-term results for our fund shareholders.
Thank you for your investment in Janus Henderson Global Income Managed Volatility Fund.
Janus Henderson Global Income Managed Volatility Fund (unaudited)
Fund At A Glance
June 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
AbbVie Inc | |
Biotechnology | 6.0% |
Wesfarmers Ltd | |
Multiline Retail | 4.9% |
Procter & Gamble Co | |
Household Products | 4.5% |
Zurich Insurance Group AG | |
Insurance | 4.4% |
Fortescue Metals Group Ltd | |
Metals & Mining | 4.3% |
| | 24.1% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.5% | |
Investments Purchased with Cash Collateral from Securities Lending | | 1.6% | |
Investment Companies | | 0.3% | |
Other | | (1.4)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of June 30, 2021 
| As of June 30, 2020 
|
Janus Henderson Global Income Managed Volatility Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 20.16% | 6.87% | 8.96% | | | 1.06% | 0.83% |
Class A Shares at MOP | | 13.25% | 5.61% | 8.29% | | | | |
Class C Shares at NAV | | 19.19% | 6.11% | 8.16% | | | 1.81% | 1.61% |
Class C Shares at CDSC | | 18.19% | 6.11% | 8.16% | | | | |
Class D Shares | | 20.36% | 7.11% | 9.14% | | | 0.86% | 0.65% |
Class I Shares | | 20.45% | 7.15% | 9.26% | | | 0.78% | 0.60% |
Class N Shares | | 20.57% | 7.10% | 8.78% | | | 0.78% | 0.50% |
Class S Shares | | 20.87% | 6.98% | 9.02% | | | 4.14% | 1.00% |
Class T Shares | | 20.21% | 6.99% | 9.07% | | | 0.95% | 0.75% |
MSCI World Index | | 39.04% | 14.83% | 12.87% | | | | |
MSCI World High Dividend Yield Index | | 27.24% | 8.73% | 9.06% | | | | |
Morningstar Quartile - Class I Shares | | 4th | 4th | 3rd | | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | 166/170 | 133/165 | 69/128 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs),
Janus Henderson Global Income Managed Volatility Fund (unaudited)
Performance
non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Intech's focus on managed volatility may keep the Fund from achieving excess returns over its index. The strategy may underperform during certain periods of up markets, and may not achieve the desired level of protection in down markets.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class N Shares commenced operations on August 4, 2017. Performance shown for periods prior to August 4, 2017 reflects the performance of the Fund’s Class I Shares, calculated using the fees and expenses of Class N Shares, without the effect of any fee and expense limitations or waivers.
If Class N Shares of the Fund had been available during periods prior to August 4, 2017, the performance shown may have been different. The performance shown for periods following the Fund’s commencement Class N Shares reflects the fees and expenses of Class N Shares, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – December 15, 2011
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Income Managed Volatility Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $1,086.50 | $4.24 | | $1,000.00 | $1,020.73 | $4.11 | 0.82% |
Class C Shares | $1,000.00 | $1,082.50 | $7.90 | | $1,000.00 | $1,017.21 | $7.65 | 1.53% |
Class D Shares | $1,000.00 | $1,087.80 | $3.26 | | $1,000.00 | $1,021.67 | $3.16 | 0.63% |
Class I Shares | $1,000.00 | $1,088.20 | $3.05 | | $1,000.00 | $1,021.87 | $2.96 | 0.59% |
Class N Shares | $1,000.00 | $1,088.70 | $2.59 | | $1,000.00 | $1,022.32 | $2.51 | 0.50% |
Class S Shares | $1,000.00 | $1,089.40 | $1.50 | | $1,000.00 | $1,023.36 | $1.45 | 0.29% |
Class T Shares | $1,000.00 | $1,087.10 | $3.78 | | $1,000.00 | $1,021.17 | $3.66 | 0.73% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Global Income Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 99.5% | | | |
Aerospace & Defense – 2.5% | | | |
| | Lockheed Martin Corp | | 8,901 | | | $3,367,693 | |
Air Freight & Logistics – 0.3% | | | |
| | Deutsche Post AG | | 6,271 | | | 426,468 | |
Auto Components – 0.3% | | | |
| | Bridgestone Corp# | | 7,600 | | | 345,859 | |
Biotechnology – 6.0% | | | |
| | AbbVie Inc | | 71,168 | | | 8,016,364 | |
Building Products – 2.6% | | | |
| | Xinyi Glass Holdings Ltd | | 830,000 | | | 3,383,457 | |
Capital Markets – 1.5% | | | |
| | Partners Group Holding AG | | 498 | | | 754,537 | |
| | Singapore Exchange Ltd | | 141,700 | | | 1,178,374 | |
| | | 1,932,911 | |
Chemicals – 1.1% | | | |
| | JSR Corp | | 36,800 | | | 1,113,144 | |
| | Nitto Denko Corp | | 4,200 | | | 313,450 | |
| | | 1,426,594 | |
Communications Equipment – 2.1% | | | |
| | Cisco Systems Inc | | 51,517 | | | 2,730,401 | |
Containers & Packaging – 0.6% | | | |
| | Amcor PLC | | 66,193 | | | 758,572 | |
Diversified Telecommunication Services – 11.2% | | | |
| | AT&T Inc | | 59,505 | | | 1,712,554 | |
| | Elisa OYJ | | 55,226 | | | 3,294,768 | |
| | HKT Trust & HKT Ltd | | 2,491,000 | | | 3,394,441 | |
| | Nippon Telegraph & Telephone Corp | | 48,600 | | | 1,266,409 | |
| | Spark New Zealand Ltd | | 344,430 | | | 1,155,305 | |
| | Swisscom AG (REG)# | | 3,857 | | | 2,202,451 | |
| | Verizon Communications Inc | | 32,097 | | | 1,798,395 | |
| | | 14,824,323 | |
Electric Utilities – 3.3% | | | |
| | Edison International | | 9,014 | | | 521,189 | |
| | Endesa SA | | 19,453 | | | 471,881 | |
| | Fortis Inc/Canada | | 5,459 | | | 241,678 | |
| | Hydro One Ltd (144A) | | 58,447 | | | 1,412,839 | |
| | Power Assets Holdings Ltd | | 138,500 | | | 850,005 | |
| | Terna Rete Elettrica Nazionale SpA | | 10,609 | | | 79,041 | |
| | Xcel Energy Inc | | 12,500 | | | 823,500 | |
| | | 4,400,133 | |
Electrical Equipment – 0.9% | | | |
| | Eaton Corp PLC | | 4,389 | | | 650,362 | |
| | Schneider Electric SE | | 3,024 | | | 475,694 | |
| | | 1,126,056 | |
Food & Staples Retailing – 2.3% | | | |
| | Colruyt SA | | 12,514 | | | 699,698 | |
| | ICA Gruppen AB | | 9,284 | | | 432,210 | |
| | Kesko Oyj | | 50,472 | | | 1,864,014 | |
| | | 2,995,922 | |
Food Products – 8.5% | | | |
| | Archer-Daniels-Midland Co | | 18,300 | | | 1,108,980 | |
| | Campbell Soup Co | | 35,403 | | | 1,614,023 | |
| | Conagra Brands Inc | | 9,523 | | | 346,447 | |
| | General Mills Inc | | 41,409 | | | 2,523,050 | |
| | JM Smucker Co | | 11,330 | | | 1,468,028 | |
| | Kellogg Co | | 54,561 | | | 3,509,909 | |
| | Orkla ASA | | 33,909 | | | 345,544 | |
| | Wilmar International Ltd | | 99,100 | | | 331,709 | |
| | | 11,247,690 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Income Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Gas Utilities – 0.2% | | | |
| | Snam SpA | | 41,482 | | | $239,759 | |
Household Durables – 0.4% | | | |
| | Sekisui House Ltd | | 28,900 | | | 592,804 | |
Household Products – 7.3% | | | |
| | Kimberly-Clark Corp | | 27,745 | | | 3,711,726 | |
| | Procter & Gamble Co | | 44,580 | | | 6,015,179 | |
| | | 9,726,905 | |
Information Technology Services – 0.4% | | | |
| | Paychex Inc | | 4,996 | | | 536,071 | |
Insurance – 7.9% | | | |
| | Admiral Group PLC | | 37,134 | | | 1,614,767 | |
| | Direct Line Insurance Group PLC | | 134,470 | | | 530,061 | |
| | Progressive Corp | | 18,844 | | | 1,850,669 | |
| | Tryg A/S | | 25,959 | | | 637,352 | |
| | Zurich Insurance Group AG | | 14,662 | | | 5,883,821 | |
| | | 10,516,670 | |
Machinery – 3.1% | | | |
| | Kone OYJ | | 50,948 | | | 4,155,815 | |
Media – 0.9% | | | |
| | Interpublic Group of Cos Inc | | 8,368 | | | 271,876 | |
| | Shaw Communications Inc | | 30,948 | | | 896,678 | |
| | | 1,168,554 | |
Metals & Mining – 5.1% | | | |
| | Evolution Mining Ltd | | 65,217 | | | 220,049 | |
| | Fortescue Metals Group Ltd | | 327,052 | | | 5,723,514 | |
| | Rio Tinto Ltd | | 3,348 | | | 317,908 | |
| | Rio Tinto PLC | | 6,473 | | | 532,605 | |
| | | 6,794,076 | |
Multiline Retail – 4.9% | | | |
| | Wesfarmers Ltd | | 146,883 | | | 6,508,848 | |
Multi-Utilities – 3.6% | | | |
| | Algonquin Power & Utilities Corp# | | 15,681 | | | 233,684 | |
| | Ameren Corp | | 8,581 | | | 686,823 | |
| | CMS Energy Corp | | 3,398 | | | 200,754 | |
| | Consolidated Edison Inc | | 3,490 | | | 250,303 | |
| | Dominion Energy Inc | | 4,665 | | | 343,204 | |
| | WEC Energy Group Inc | | 34,011 | | | 3,025,278 | |
| | | 4,740,046 | |
Oil, Gas & Consumable Fuels – 0.6% | | | |
| | Washington H Soul Pattinson & Co Ltd | | 31,976 | | | 808,697 | |
Personal Products – 0.8% | | | |
| | Unilever PLC | | 17,133 | | | 1,002,492 | |
Pharmaceuticals – 4.0% | | | |
| | Johnson & Johnson | | 14,762 | | | 2,431,892 | |
| | Novartis AG | | 26,039 | | | 2,373,631 | |
| | Recordati SpA | | 9,764 | | | 557,976 | |
| | | 5,363,499 | |
Professional Services – 1.0% | | | |
| | SGS SA | | 440 | | | 1,357,578 | |
Road & Rail – 1.4% | | | |
| | Nippon Express Co Ltd | | 23,800 | | | 1,812,640 | |
Semiconductor & Semiconductor Equipment – 1.0% | | | |
| | Texas Instruments Inc | | 6,915 | | | 1,329,755 | |
Software – 0.5% | | | |
| | Trend Micro Inc/Japan | | 12,700 | | | 665,412 | |
Technology Hardware, Storage & Peripherals – 5.2% | | | |
| | HP Inc | | 59,403 | | | 1,793,377 | |
| | Seagate Technology Holdings PLC | | 58,527 | | | 5,146,279 | |
| | | 6,939,656 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Global Income Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Tobacco – 4.0% | | | |
| | Altria Group Inc | | 112,056 | | | $5,342,830 | |
Trading Companies & Distributors – 2.5% | | | |
| | ITOCHU Corp | | 115,900 | | | 3,338,855 | |
Wireless Telecommunication Services – 1.5% | | | |
| | KDDI Corp | | 36,300 | | | 1,132,333 | |
| | Softbank Corp | | 68,400 | | | 895,025 | |
| | | 2,027,358 | |
Total Common Stocks (cost $121,862,935) | | 131,950,763 | |
Investment Companies– 0.3% | | | |
Money Markets – 0.3% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº,£((cost $339,311) | | 339,277 | | | 339,311 | |
Investments Purchased with Cash Collateral from Securities Lending– 1.6% | | | |
Investment Companies – 1.3% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 1,715,073 | | | 1,715,073 | |
Time Deposits – 0.3% | | | |
| | Royal Bank of Canada, 0.0500%, 7/1/21 | | $428,768 | | | 428,768 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $2,143,841) | | 2,143,841 | |
Total Investments (total cost $124,346,087) – 101.4% | | 134,433,915 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.4)% | | (1,875,538) | |
Net Assets – 100% | | $132,558,377 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $66,368,635 | | 49.4 | % |
Australia | | 13,579,016 | | 10.1 | |
Switzerland | | 12,572,018 | | 9.3 | |
Japan | | 11,475,931 | | 8.5 | |
Finland | | 9,314,597 | | 6.9 | |
Hong Kong | | 7,627,903 | | 5.7 | |
United Kingdom | | 3,679,925 | | 2.7 | |
Canada | | 2,784,879 | | 2.1 | |
Singapore | | 1,510,083 | | 1.1 | |
New Zealand | | 1,155,305 | | 0.9 | |
Italy | | 876,776 | | 0.7 | |
Belgium | | 699,698 | | 0.5 | |
Denmark | | 637,352 | | 0.5 | |
France | | 475,694 | | 0.4 | |
Spain | | 471,881 | | 0.3 | |
Sweden | | 432,210 | | 0.3 | |
Germany | | 426,468 | | 0.3 | |
Norway | | 345,544 | | 0.3 | |
| | | | | | |
| | | | | | |
Total | | $134,433,915 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Income Managed Volatility Fund
Schedule of Investments
June 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 6/30/21 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | $ | 753 | $ | (109) | $ | - | $ | 339,311 |
Investments Purchased with Cash Collateral from Securities Lending - 1.3% |
Investment Companies - 1.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 5,707∆ | | - | | - | | 1,715,073 |
Total Affiliated Investments - 1.6% | $ | 6,460 | $ | (109) | $ | - | $ | 2,054,384 |
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | | 1,488,852 | | 36,505,279 | | (37,654,711) | | 339,311 |
Investments Purchased with Cash Collateral from Securities Lending - 1.3% |
Investment Companies - 1.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | - | | 12,034,463 | | (10,319,390) | | 1,715,073 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson Global Income Managed Volatility Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI World High Dividend Yield IndexSM | MSCI World High Dividend Yield IndexSM reflects the performance of high dividend yield securities from global developed markets. |
MSCI World IndexSM | MSCI World IndexSM reflects the equity market performance of global developed markets. |
| | |
LLC | Limited Liability Company |
PLC | Public Limited Company |
REG | Registered |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the year ended June 30, 2021 is $1,412,839, which represents 1.1% of net assets. |
| | |
ºº | Rate shown is the 7-day yield as of June 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at June 30, 2021. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | $ | 131,950,763 | $ | - | $ | - |
Investment Companies | | - | | 339,311 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 2,143,841 | | - |
Total Assets | $ | 131,950,763 | $ | 2,483,152 | $ | - |
| | | | | | | |
Janus Henderson Global Income Managed Volatility Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $122,291,703)(1) | | $ | 132,379,531 | |
| Affiliated investments, at value (cost $2,054,384) | | | 2,054,384 | |
| Cash denominated in foreign currency (cost $1,460) | | | 1,460 | |
| Non-interested Trustees' deferred compensation | | | 3,220 | |
| Receivables: | | | | |
| | Dividends | | | 265,249 | |
| | Foreign tax reclaims | | | 229,026 | |
| | Fund shares sold | | | 201,461 | |
| | Dividends from affiliates | | | 23 | |
| Other assets | | | 3,694 | |
Total Assets | | | 135,138,048 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 2,143,841 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 253,593 | |
| | Professional fees | | | 49,744 | |
| | Advisory fees | | | 33,405 | |
| | Transfer agent fees and expenses | | | 19,860 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 13,553 | |
| | Dividends | | | 4,591 | |
| | Custodian fees | | | 3,240 | |
| | Non-interested Trustees' deferred compensation fees | | | 3,220 | |
| | Non-interested Trustees' fees and expenses | | | 522 | |
| | Affiliated fund administration fees payable | | | 276 | |
| | Accrued expenses and other payables | | | 53,826 | |
Total Liabilities | | | 2,579,671 | |
Net Assets | | $ | 132,558,377 | |
| | |
See Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Global Income Managed Volatility Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 133,473,499 | |
| Total distributable earnings (loss) | | | (915,122) | |
Total Net Assets | | $ | 132,558,377 | |
Net Assets - Class A Shares | | $ | 5,256,534 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 344,662 | |
Net Asset Value Per Share(2) | | $ | 15.25 | |
Maximum Offering Price Per Share(3) | | $ | 16.18 | |
Net Assets - Class C Shares | | $ | 14,976,239 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 989,688 | |
Net Asset Value Per Share(2) | | $ | 15.13 | |
Net Assets - Class D Shares | | $ | 27,194,597 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,788,265 | |
Net Asset Value Per Share | | $ | 15.21 | |
Net Assets - Class I Shares | | $ | 59,596,619 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,895,119 | |
Net Asset Value Per Share | | $ | 15.30 | |
Net Assets - Class N Shares | | $ | 2,897,317 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 189,420 | |
Net Asset Value Per Share | | $ | 15.30 | |
Net Assets - Class S Shares | | $ | 11,593 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 763 | |
Net Asset Value Per Share | | $ | 15.19 | |
Net Assets - Class T Shares | | $ | 22,625,478 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,485,694 | |
Net Asset Value Per Share | | $ | 15.23 | |
| |
(1) Includes $1,874,488 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Income Managed Volatility Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 5,723,783 | |
| Affiliated securities lending income, net | | 5,707 | |
| Dividends from affiliates | | 753 | |
| Unaffiliated securities lending income, net | | 169 | |
| Other income | | 1,997 | |
| Foreign tax withheld | | (297,344) | |
Total Investment Income | | 5,435,065 | |
Expenses: | | | |
| Advisory fees | | 745,137 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 13,281 | |
| | Class C Shares | | 146,040 | |
| | Class S Shares | | — | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 29,781 | |
| | Class S Shares | | — | |
| | Class T Shares | | 64,363 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 4,356 | |
| | Class C Shares | | 14,546 | |
| | Class I Shares | | 58,709 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 395 | |
| | Class C Shares | | 897 | |
| | Class D Shares | | 7,121 | |
| | Class I Shares | | 2,961 | |
| | Class N Shares | | 109 | |
| | Class S Shares | | 5 | |
| | Class T Shares | | 497 | |
| Registration fees | | 101,675 | |
| Non-affiliated fund administration fees | | 66,135 | |
| Professional fees | | 50,146 | |
| Shareholder reports expense | | 26,404 | |
| Custodian fees | | 16,363 | |
| Affiliated fund administration fees | | 3,784 | |
| Non-interested Trustees’ fees and expenses | | 1,820 | |
| Other expenses | | 11,046 | |
Total Expenses | | 1,365,571 | |
Less: Excess Expense Reimbursement and Waivers | | (347,213) | |
Net Expenses | | 1,018,358 | |
Net Investment Income/(Loss) | | 4,416,707 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Global Income Managed Volatility Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 15,135,747 | |
| Investments in affiliates | | (109) | |
Total Net Realized Gain/(Loss) on Investments | | 15,135,638 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 5,365,631 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 5,365,631 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 24,917,976 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Income Managed Volatility Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 4,416,707 | | $ | 6,658,178 | |
| Net realized gain/(loss) on investments | | 15,135,638 | | | (25,299,655) | |
| Change in unrealized net appreciation/depreciation | | 5,365,631 | | | (17,962,371) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 24,917,976 | | | (36,603,848) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (173,278) | | | (237,521) | |
| | Class C Shares | | (380,660) | | | (460,353) | |
| | Class D Shares | | (890,996) | | | (1,157,443) | |
| | Class I Shares | | (2,070,329) | | | (5,729,440) | |
| | Class N Shares | | (102,027) | | | (135,306) | |
| | Class S Shares | | (410) | | | (3,463) | |
| | Class T Shares | | (840,813) | | | (1,201,762) | |
Net Decrease from Dividends and Distributions to Shareholders | | (4,458,513) | | | (8,925,288) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (1,356,497) | | | (1,365,013) | |
| | Class C Shares | | (2,330,517) | | | (491,454) | |
| | Class D Shares | | (3,388,691) | | | (3,345,795) | |
| | Class I Shares | | (6,614,361) | | | (87,330,990) | |
| | Class N Shares | | (699,701) | | | (106,063) | |
| | Class S Shares | | 410 | | | (158,394) | |
| | Class T Shares | | (10,403,057) | | | (1,103,392) | |
Net Increase/(Decrease) from Capital Share Transactions | | (24,792,414) | | | (93,901,101) | |
Net Increase/(Decrease) in Net Assets | | (4,332,951) | | | (139,430,237) | |
Net Assets: | | | | | | |
| Beginning of period | | 136,891,328 | | | 276,321,565 | |
| End of period | $ | 132,558,377 | | $ | 136,891,328 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Global Income Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.11 | | | $14.10 | | | $13.07 | | | $13.38 | | | $12.84 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.45 | | | 0.38 | | | 0.38 | | | 0.44 | | | 0.32 | |
| | Net realized and unrealized gain/(loss) | | 2.15 | | | (0.87) | | | 1.06 | | | (0.30) | | | 0.57 | |
| Total from Investment Operations | | 2.60 | | | (0.49) | | | 1.44 | | | 0.14 | | | 0.89 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.46) | | | (0.40) | | | (0.41) | | | (0.45) | | | (0.35) | |
| | Distributions (from capital gains) | | — | | | (0.10) | | | — | | | — | | | —(2) | |
| Total Dividends and Distributions | | (0.46) | | | (0.50) | | | (0.41) | | | (0.45) | | | (0.35) | |
| Net Asset Value, End of Period | | $15.25 | | | $13.11 | | | $14.10 | | | $13.07 | | | $13.38 | |
| Total Return* | | 20.16% | | | (3.61)% | | | 11.22% | | | 1.01% | | | 7.13% | |
| Net Assets, End of Period (in thousands) | | $5,257 | | | $5,830 | | | $7,724 | | | $7,335 | | | $13,425 | |
| Average Net Assets for the Period (in thousands) | | $5,382 | | | $6,611 | | | $7,467 | | | $10,020 | | | $27,845 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.12% | | | 1.06% | | | 1.05% | | | 1.03% | | | 1.05% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.84% | | | 0.83% | | | 0.83% | | | 0.87% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 3.16% | | | 2.76% | | | 2.81% | | | 3.25% | | | 2.55% | |
| Portfolio Turnover Rate | | 117% | | | 73% | | | 24% | | | 60% | | | 58% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.02 | | | $13.99 | | | $12.98 | | | $13.28 | | | $12.75 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.35 | | | 0.28 | | | 0.28 | | | 0.36 | | | 0.30 | |
| | Net realized and unrealized gain/(loss) | | 2.12 | | | (0.86) | | | 1.04 | | | (0.30) | | | 0.50 | |
| Total from Investment Operations | | 2.47 | | | (0.58) | | | 1.32 | | | 0.06 | | | 0.80 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.36) | | | (0.29) | | | (0.31) | | | (0.36) | | | (0.27) | |
| | Distributions (from capital gains) | | — | | | (0.10) | | | — | | | — | | | —(2) | |
| Total Dividends and Distributions | | (0.36) | | | (0.39) | | | (0.31) | | | (0.36) | | | (0.27) | |
| Net Asset Value, End of Period | | $15.13 | | | $13.02 | | | $13.99 | | | $12.98 | | | $13.28 | |
| Total Return* | | 19.19% | | | (4.22)% | | | 10.33% | | | 0.41% | | | 6.36% | |
| Net Assets, End of Period (in thousands) | | $14,976 | | | $15,029 | | | $16,735 | | | $17,491 | | | $20,450 | |
| Average Net Assets for the Period (in thousands) | | $15,141 | | | $15,943 | | | $16,705 | | | $19,521 | | | $16,659 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.82% | | | 1.80% | | | 1.77% | | | 1.70% | | | 1.78% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.57% | | | 1.59% | | | 1.58% | | | 1.54% | | | 1.61% | |
| | Ratio of Net Investment Income/(Loss) | | 2.46% | | | 2.03% | | | 2.06% | | | 2.73% | | | 2.39% | |
| Portfolio Turnover Rate | | 117% | | | 73% | | | 24% | | | 60% | | | 58% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Income Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.08 | | | $14.06 | | | $13.03 | | | $13.34 | | | $12.80 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.48 | | | 0.40 | | | 0.40 | | | 0.49 | | | 0.40 | |
| | Net realized and unrealized gain/(loss) | | 2.14 | | | (0.86) | | | 1.07 | | | (0.32) | | | 0.52 | |
| Total from Investment Operations | | 2.62 | | | (0.46) | | | 1.47 | | | 0.17 | | | 0.92 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.49) | | | (0.42) | | | (0.44) | | | (0.48) | | | (0.38) | |
| | Distributions (from capital gains) | | — | | | (0.10) | | | — | | | — | | | —(2) | |
| Total Dividends and Distributions | | (0.49) | | | (0.52) | | | (0.44) | | | (0.48) | | | (0.38) | |
| Net Asset Value, End of Period | | $15.21 | | | $13.08 | | | $14.06 | | | $13.03 | | | $13.34 | |
| Total Return* | | 20.36% | | | (3.37)% | | | 11.46% | | | 1.24% | | | 7.39% | |
| Net Assets, End of Period (in thousands) | | $27,195 | | | $26,688 | | | $32,363 | | | $35,061 | | | $49,826 | |
| Average Net Assets for the Period (in thousands) | | $26,014 | | | $30,397 | | | $32,106 | | | $44,872 | | | $55,232 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.86% | | | 0.83% | | | 0.84% | | | 0.87% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.64% | | | 0.65% | | | 0.64% | | | 0.65% | | | 0.66% | |
| | Ratio of Net Investment Income/(Loss) | | 3.38% | | | 2.95% | | | 2.99% | | | 3.62% | | | 3.16% | |
| Portfolio Turnover Rate | | 117% | | | 73% | | | 24% | | | 60% | | | 58% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.15 | | | $14.14 | | | $13.10 | | | $13.41 | | | $12.87 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.49 | | | 0.40 | | | 0.41 | | | 0.49 | | | 0.46 | |
| | Net realized and unrealized gain/(loss) | | 2.16 | | | (0.86) | | | 1.07 | | | (0.31) | | | 0.47 | |
| Total from Investment Operations | | 2.65 | | | (0.46) | | | 1.48 | | | 0.18 | | | 0.93 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.50) | | | (0.43) | | | (0.44) | | | (0.49) | | | (0.39) | |
| | Distributions (from capital gains) | | — | | | (0.10) | | | — | | | — | | | —(2) | |
| Total Dividends and Distributions | | (0.50) | | | (0.53) | | | (0.44) | | | (0.49) | | | (0.39) | |
| Net Asset Value, End of Period | | $15.30 | | | $13.15 | | | $14.14 | | | $13.10 | | | $13.41 | |
| Total Return* | | 20.45% | | | (3.38)% | | | 11.53% | | | 1.30% | | | 7.42% | |
| Net Assets, End of Period (in thousands) | | $59,597 | | | $57,095 | | | $182,730 | | | $157,957 | | | $76,883 | |
| Average Net Assets for the Period (in thousands) | | $60,296 | | | $149,151 | | | $167,142 | | | $130,145 | | | $53,486 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.84% | | | 0.78% | | | 0.78% | | | 0.75% | | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.60% | | | 0.61% | | | 0.60% | | | 0.60% | | | 0.59% | |
| | Ratio of Net Investment Income/(Loss) | | 3.40% | | | 2.83% | | | 3.07% | | | 3.66% | | | 3.59% | |
| Portfolio Turnover Rate | | 117% | | | 73% | | | 24% | | | 60% | | | 58% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson Global Income Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018(1) | |
| Net Asset Value, Beginning of Period | | $13.15 | | | $14.14 | | | $13.10 | | | $13.65 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.51 | | | 0.43 | | | 0.43 | | | 0.42 | |
| | Net realized and unrealized gain/(loss) | | 2.15 | | | (0.88) | | | 1.07 | | | (0.51) | |
| Total from Investment Operations | | 2.66 | | | (0.45) | | | 1.50 | | | (0.09) | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.51) | | | (0.44) | | | (0.46) | | | (0.46) | |
| | Distributions (from capital gains) | | — | | | (0.10) | | | — | | | — | |
| Total Dividends and Distributions | | (0.51) | | | (0.54) | | | (0.46) | | | (0.46) | |
| Net Asset Value, End of Period | | $15.30 | | | $13.15 | | | $14.14 | | | $13.10 | |
| Total Return* | | 20.57% | | | (3.28)% | | | 11.63% | | | (0.66)% | |
| Net Assets, End of Period (in thousands) | | $2,897 | | | $3,154 | | | $3,538 | | | $3,371 | |
| Average Net Assets for the Period (in thousands) | | $2,891 | | | $3,449 | | | $3,324 | | | $2,827 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.83% | | | 0.78% | | | 0.76% | | | 0.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.50% | | | 0.50% | | | 0.50% | | | 0.51% | |
| | Ratio of Net Investment Income/(Loss) | | 3.55% | | | 3.15% | | | 3.16% | | | 3.45% | |
| Portfolio Turnover Rate | | 117% | | | 73% | | | 24% | | | 60% | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.09 | | | $14.07 | | | $13.05 | | | $13.35 | | | $12.81 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.55 | | | 0.30 | | | 0.36 | | | 0.45 | | | 0.38 | |
| | Net realized and unrealized gain/(loss) | | 2.10 | | | (0.79) | | | 1.09 | | | (0.31) | | | 0.51 | |
| Total from Investment Operations | | 2.65 | | | (0.49) | | | 1.45 | | | 0.14 | | | 0.89 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.55) | | | (0.39) | | | (0.43) | | | (0.44) | | | (0.35) | |
| | Distributions (from capital gains) | | — | | | (0.10) | | | — | | | — | | | —(3) | |
| Total Dividends and Distributions | | (0.55) | | | (0.49) | | | (0.43) | | | (0.44) | | | (0.35) | |
| Net Asset Value, End of Period | | $15.19 | | | $13.09 | | | $14.07 | | | $13.05 | | | $13.35 | |
| Total Return* | | 20.62% | | | (3.61)% | | | 11.27% | | | 1.03% | | | 7.09% | |
| Net Assets, End of Period (in thousands) | | $12 | | | $10 | | | $167 | | | $360 | | | $370 | |
| Average Net Assets for the Period (in thousands) | | $11 | | | $100 | | | $274 | | | $366 | | | $344 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 28.73% | | | 4.14% | | | 2.17% | | | 1.36% | | | 1.18% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.20% | | | 0.93% | | | 0.82% | | | 0.92% | | | 0.92% | |
| | Ratio of Net Investment Income/(Loss) | | 3.85% | | | 2.07% | | | 2.67% | | | 3.35% | | | 2.97% | |
| Portfolio Turnover Rate | | 117% | | | 73% | | | 24% | | | 60% | | | 58% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 4, 2017 (inception date) through June 30, 2018. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Income Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.10 | | | $14.08 | | | $13.05 | | | $13.36 | | | $12.82 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.46 | | | 0.39 | | | 0.41 | | | 0.47 | | | 0.39 | |
| | Net realized and unrealized gain/(loss) | | 2.15 | | | (0.86) | | | 1.04 | | | (0.31) | | | 0.52 | |
| Total from Investment Operations | | 2.61 | | | (0.47) | | | 1.45 | | | 0.16 | | | 0.91 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.48) | | | (0.41) | | | (0.42) | | | (0.47) | | | (0.37) | |
| | Distributions (from capital gains) | | — | | | (0.10) | | | — | | | — | | | —(2) | |
| Total Dividends and Distributions | | (0.48) | | | (0.51) | | | (0.42) | | | (0.47) | | | (0.37) | |
| Net Asset Value, End of Period | | $15.23 | | | $13.10 | | | $14.08 | | | $13.05 | | | $13.36 | |
| Total Return* | | 20.21% | | | (3.45)% | | | 11.34% | | | 1.14% | | | 7.28% | |
| Net Assets, End of Period (in thousands) | | $22,625 | | | $29,086 | | | $33,064 | | | $36,137 | | | $55,018 | |
| Average Net Assets for the Period (in thousands) | | $25,745 | | | $32,256 | | | $35,201 | | | $47,900 | | | $58,466 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.00% | | | 0.95% | | | 0.92% | | | 0.91% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.74% | | | 0.74% | | | 0.74% | | | 0.74% | | | 0.75% | |
| | Ratio of Net Investment Income/(Loss) | | 3.26% | | | 2.87% | | | 3.01% | | | 3.49% | | | 3.08% | |
| Portfolio Turnover Rate | | 117% | | | 73% | | | 24% | | | 60% | | | 58% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
20 | JUNE 30, 2021 |
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Income Managed Volatility Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital and income. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with United States of America generally accepted accounting principles ("US GAAP").
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends of net investment income are generally declared and distributed monthly and realized capital gains (if any) are distributed annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 1,874,488 | $ | — | $ | (1,874,488) | $ | — |
| | | | | | | | | |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to primarily invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of June 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $1,874,488. Gross amounts of recognized liabilities for securities lending (collateral received) as of June 30, 2021 is $2,143,841, resulting in the net amount due to the counterparty of $269,353.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.55% of its average daily net assets.
Intech Investment Management LLC (“Intech”) serves as subadviser to the Fund. As subadviser, Intech provides day-to-day management of the investment operations of the Fund subject to the general oversight of Janus Capital. Janus Capital owns approximately 97% of Intech.
Janus Capital pays Intech a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (net of any fee waivers and expense reimbursements).
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.50% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $233.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $685.
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
As of June 30, 2021, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 2 | | -* | | |
Class S Shares | 100 | | -* | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 193,595 | $ - | $ (10,833,252) | $ - | $ - | $ (289) | $ 9,724,824 | |
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended June 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(5,067,767) | $(5,765,485) | $ (10,833,252) | | |
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 124,709,091 | $10,966,676 | $ (1,241,852) | $ 9,724,824 |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 4,458,513 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 6,946,544 | $ 1,978,744 | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ - | $ (36,603) | $ 36,603 |
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 58,683 | $ 850,120 | | 64,803 | $ 900,044 |
Reinvested dividends and distributions | 12,205 | 173,278 | | 17,159 | 237,521 |
Shares repurchased | (170,751) | (2,379,895) | | (185,339) | (2,502,578) |
Net Increase/(Decrease) | (99,863) | $ (1,356,497) | | (103,377) | $ (1,365,013) |
Class C Shares: | | | | | |
Shares sold | 61,686 | $ 868,648 | | 130,741 | $ 1,800,560 |
Reinvested dividends and distributions | 26,969 | 380,660 | | 33,417 | 459,745 |
Shares repurchased | (253,670) | (3,579,825) | | (205,296) | (2,751,759) |
Net Increase/(Decrease) | (165,015) | $ (2,330,517) | | (41,138) | $ (491,454) |
Class D Shares: | | | | | |
Shares sold | 207,916 | $ 3,037,508 | | 267,016 | $ 3,635,985 |
Reinvested dividends and distributions | 59,244 | 840,383 | | 79,038 | 1,090,362 |
Shares repurchased | (519,576) | (7,266,582) | | (607,261) | (8,072,142) |
Net Increase/(Decrease) | (252,416) | $ (3,388,691) | | (261,207) | $ (3,345,795) |
Class I Shares: | | | | | |
Shares sold | 1,429,210 | $ 20,316,475 | | 2,716,279 | $ 37,534,217 |
Reinvested dividends and distributions | 145,075 | 2,069,362 | | 407,458 | 5,728,464 |
Shares repurchased | (2,019,442) | (29,000,198) | | (11,710,186) | (130,593,671) |
Net Increase/(Decrease) | (445,157) | $ (6,614,361) | | (8,586,449) | $(87,330,990) |
Class N Shares: | | | | | |
Shares sold | 22,310 | $ 322,154 | | 57,130 | $ 805,355 |
Reinvested dividends and distributions | 7,154 | 102,027 | | 9,776 | 135,306 |
Shares repurchased | (79,879) | (1,123,882) | | (77,336) | (1,046,724) |
Net Increase/(Decrease) | (50,415) | $ (699,701) | | (10,430) | $ (106,063) |
Class S Shares: | | | | | |
Shares sold | 1 | $ - | | 723 | $ 9,942 |
Reinvested dividends and distributions | 29 | 410 | | 244 | 3,463 |
Shares repurchased | - | - | | (12,107) | (171,799) |
Net Increase/(Decrease) | 30 | $ 410 | | (11,140) | $ (158,394) |
Class T Shares: | | | | | |
Shares sold | 263,782 | $ 3,746,390 | | 1,049,093 | $ 14,291,023 |
Reinvested dividends and distributions | 59,458 | 840,792 | | 86,998 | 1,201,762 |
Shares repurchased | (1,058,541) | (14,990,239) | | (1,263,569) | (16,596,177) |
Net Increase/(Decrease) | (735,301) | $(10,403,057) | | (127,478) | $ (1,103,392) |
6. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$155,418,633 | $ 179,197,776 | $ - | $ - |
Janus Henderson Global Income Managed Volatility Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Global Income Managed Volatility Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Income Managed Volatility Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Global Income Managed Volatility Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 60-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Global Income Managed Volatility Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Global Income Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Global Income Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Global Income Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Global Income Managed Volatility Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Foreign Taxes Paid | $267,385 |
Foreign Source Income | $3,546,841 |
Dividends Received Deduction Percentage | 41% |
Qualified Dividend Income Percentage | 100% |
Janus Henderson Global Income Managed Volatility Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Global Income Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Income Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Global Income Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Global Income Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Income Managed Volatility Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Global Income Managed Volatility Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
| | | | |
| | | | |
Janus Henderson Global Income Managed Volatility Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Global Income Managed Volatility Fund
Notes
NotesPage1
Janus Henderson Global Income Managed Volatility Fund
Notes
NotesPage2
Janus Henderson Global Income Managed Volatility Fund
Notes
NotesPage3
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93013 08-21 |
| | | |
| | | |
| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson Government Money Market Fund |
| | |
| | Janus Investment Fund |
| |
Table of Contents
Janus Henderson Government Money Market Fund
Janus Henderson Government Money Market Fund (unaudited)
Performance
| | | | | | |
| | | | 
David Spilsted co-portfolio manager | 
Garrett Strum co-portfolio manager |
| | | |
| | | | | | |
Average Annual Total Return | | Seven-Day Current Yield | |
For the periods ended June 30, 2021 | | | Class D Shares | | |
Class D Shares | | | With Reimbursement | 0.00% | |
1 Year | 0.00% | | Without Reimbursement | 0.00% | |
5 Year | 0.70% | | Class T Shares | | |
10 Year | 0.35% | | With Reimbursement | 0.00% | |
Since Inception (February 14, 1995) | 2.04% | | Without Reimbursement | 0.00% | |
Class T Shares | | | Expense Ratios | |
1 Year | 0.00% | | Per the October 28, 2020 prospectuses | | |
5 Year | 0.69% | | Class D Shares | | |
10 Year | 0.34% | | Total Annual Fund Operating Expenses | 0.63% | |
Since Inception (February 14, 1995) | 2.04% | | Class T Shares | | |
| | | Total Annual Fund Operating Expenses | 0.66% | |
| | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Returns include reinvestment of all dividends and distributions.
The yield more closely reflects the current earnings of the money market fund than the total return.
Class D Shares of the Fund commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
If Class D Shares of the Fund had been available during periods prior to February 16, 2010, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
See “Useful Information About Your Fund Report.”
See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Government Money Market Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in either share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class D Shares | $1,000.00 | $1,000.00 | $0.30 | | $1,000.00 | $1,024.50 | $0.30 | 0.06% |
Class T Shares | $1,000.00 | $1,000.00 | $0.30 | | $1,000.00 | $1,024.50 | $0.30 | 0.06% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Government Money Market Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Principal Amounts
| | | Value | |
U.S. Government Agency Notes– 37.3% | | | |
Federal Farm Credit Discount Notes: | | | |
| | 0.0600%, 8/6/21 | | $3,000,000 | | | $2,999,820 | |
Federal Home Loan Bank Discount Notes: | | | |
| | 0.0200%, 7/2/21 | | 5,000,000 | | | 4,999,997 | |
| | 0.0200%, 7/7/21 | | 3,000,000 | | | 2,999,990 | |
| | 0.0040%, 7/9/21 | | 2,600,000 | | | 2,599,998 | |
| | 0.0168%, 7/14/21 | | 5,000,000 | | | 4,999,970 | |
| | 0.0402%, 7/15/21 | | 5,000,000 | | | 4,999,922 | |
| | 0.0050%, 7/23/21 | | 4,100,000 | | | 4,099,987 | |
| | 0.0201%, 7/27/21 | | 5,000,000 | | | 4,999,928 | |
| | 0.0150%, 7/28/21 | | 5,000,000 | | | 4,999,944 | |
| | 0.0150%, 8/4/21 | | 5,000,000 | | | 4,999,929 | |
| | 0.0129%, 8/11/21 | | 5,000,000 | | | 4,999,927 | |
| | 0.0315%, 8/13/21 | | 10,000,000 | | | 9,999,624 | |
| | 0.0149%, 8/16/21 | | 5,000,000 | | | 4,999,905 | |
| | 0.0117%, 8/18/21 | | 10,000,000 | | | 9,999,843 | |
| | 0.0149%, 8/20/21 | | 5,000,000 | | | 4,999,897 | |
| | 0.0131%, 8/25/21 | | 8,000,000 | | | 7,999,840 | |
| | 0.0080%, 8/27/21 | | 5,000,000 | | | 4,999,936 | |
| | 0.0178%, 9/1/21 | | 5,000,000 | | | 4,999,847 | |
| | 0.0198%, 9/3/21 | | 5,000,000 | | | 4,999,824 | |
| | 0.0201%, 9/8/21 | | 5,000,000 | | | 4,999,808 | |
| | 0.0221%, 9/10/21 | | 5,000,000 | | | 4,999,782 | |
| | 0.0247%, 9/15/21 | | 5,000,000 | | | 4,999,739 | |
| | 0.0482%, 9/17/21 | | 5,000,000 | | | 4,999,478 | |
| | 0.0421%, 9/22/21 | | 5,000,000 | | | 4,999,514 | |
| | 0.0300%, 10/8/21 | | 5,000,000 | | | 4,999,588 | |
| | | 127,696,217 | |
Total U.S. Government Agency Notes (cost $130,696,037) | | 130,696,037 | |
U.S. Treasury Debt– 18.6% | | | |
| | Cash Management Bill, 0.0214%, 8/3/21 | | 5,000,000 | | | 4,999,909 | |
| | Cash Management Bill, 0.0205%, 8/10/21 | | 5,000,000 | | | 4,999,889 | |
| | Cash Management Bill, 0.0050%, 9/14/21 | | 5,000,000 | | | 4,999,948 | |
| | United States Treasury Bill, 0.0001%, 7/1/21 | | 5,000,000 | | | 5,000,000 | |
| | United States Treasury Bill, 0.0457%, 7/8/21 | | 5,000,000 | | | 4,999,961 | |
| | United States Treasury Bill, 0.0108%, 7/29/21 | | 5,000,000 | | | 4,999,962 | |
| | United States Treasury Bill, 0.0430%, 8/5/21 | | 5,000,000 | | | 4,999,806 | |
| | United States Treasury Bill, 0.0106%, 8/12/21 | | 5,000,000 | | | 4,999,942 | |
| | United States Treasury Bill, 0.0433%, 8/19/21 | | 5,000,000 | | | 4,999,721 | |
| | United States Treasury Bill, 0.0105%, 8/26/21 | | 5,000,000 | | | 4,999,922 | |
| | United States Treasury Bill, 0.0157%, 9/2/21 | | 5,000,000 | | | 4,999,869 | |
| | United States Treasury Bill, 0.0206%, 9/16/21 | | 5,000,000 | | | 4,999,788 | |
| | United States Treasury Bill, 0.0156%, 9/23/21 | | 5,000,000 | | | 4,999,825 | |
Total U.S. Treasury Debt (cost $64,998,542) | | 64,998,542 | |
Variable Rate Demand Notes¶– 15.8% | | | |
| | AE Realty LLC (LOC: FHLB Dallas), 0.2000%, 10/1/23 | | 280,000 | | | 280,000 | |
| | Bryan W Kelley IRR (LOC: FHLB of Dallas), 0.1100%, 7/1/70 | | 2,980,000 | | | 2,980,000 | |
| | Cypress Bend Real Estate Development Co LLC (LOC: FHLB Dallas), | | | | | | |
| | 0.1200%, 4/1/33 | | 9,000,000 | | | 9,000,000 | |
| | Irvine Inn Apartments (LOC: FHLB San Francisco), 0.1200%, 2/1/60 | | 4,000,000 | | | 4,000,000 | |
| | John H. Smith Irrevocable Trust of 2017, 0.1200%, 2/1/41 | | 5,820,000 | | | 5,820,000 | |
| | Johnson Capital Management LLC (LOC: FHLB Indianapolis), 0.1900%, 6/3/47 | | 2,845,000 | | | 2,845,000 | |
| | Lake Nona Trust (LOC: FHLB Atlanta), 0.2000%, 10/1/44 | | 2,600,000 | | | 2,600,000 | |
| | LML Trust (LOC: FHLB of Dallas), 0.1200%, 2/1/41 | | 4,500,000 | | | 4,500,000 | |
| | Mississippi Business Finance Corp (LOC: FHLB Dallas), 0.3700%, 9/1/21 | | 375,000 | | | 375,000 | |
| | Mississippi Business Finance Corp (LOC: FHLB Dallas), 0.2200%, 12/1/35 | | 2,665,000 | | | 2,665,000 | |
| | New Sawmill Ridge LLC (LOC: FHLB of Indianapolis), 0.1200%, 6/1/61 | | 3,900,000 | | | 3,900,000 | |
| | Olivetree Apartments LP (LOC: FHLB San Francisco), 0.1200%, 6/2/59 | | 7,000,000 | | | 7,000,000 | |
| | SMZ Holdings LLC/TX (LOC: FHLB Dallas), 0.1200%, 6/1/40 | | 4,240,000 | | | 4,240,000 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 3 |
Janus Henderson Government Money Market Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Principal Amounts
| | | Value | |
Variable Rate Demand Notes¶– (continued) | | | |
| | Tyler Enterprises LLC (LOC: FHLB Dallas), 0.2500%, 10/3/22 | | $225,000 | | | $225,000 | |
| | Ventana Housing LP (LOC: FHLB San Francisco), 0.1200%, 6/1/60 | | 5,000,000 | | | 5,000,000 | |
Total Variable Rate Demand Notes (cost $55,430,000) | | 55,430,000 | |
Repurchase Agreementsë– 27.9% | | | |
| | Goldman Sachs & Co., Joint repurchase agreement, 0.0500%, dated 6/30/21, maturing 7/1/21 to be repurchased at $10,000,014 collateralized by $9,983,234 in U.S. Government Agencies 0.6934% - 3.4580%, 10/16/48 - 5/16/53 with a value of $10,200,000 | | 10,000,000 | | | 10,000,000 | |
| | HSBC Securities (USA), Inc, Joint repurchase agreement, 0.0400%, dated 6/30/21, maturing 7/1/21 to be repurchased at $10,000,011 collateralized by $12,936,616 in U.S. Treasuries 0% - 7.2500%, 6/30/22 - 11/15/49 with a value of $10,200,000 | | 10,000,000 | | | 10,000,000 | |
| | ING Financial Markets LLC, Joint repurchase agreement, 0.0300%, dated 6/30/21, maturing 7/1/21 to be repurchased at $20,000,017 collateralized by $19,870,029 in U.S. Treasuries 0% - 2.8750%, 10/7/21 - 2/15/45 with a value of $20,400,019 | | 20,000,000 | | | 20,000,000 | |
| | ING Financial Markets LLC, Joint repurchase agreement, 0.0400%, dated 6/30/21, maturing 7/1/21 to be repurchased at $15,000,017 collateralized by $14,767,410 in U.S. Government Agencies 1.5000% - 4.5000%, 9/1/29 - 1/1/57 with a value of $15,300,017 | | 15,000,000 | | | 15,000,000 | |
| | Royal Bank of Canada, NY Branch, Joint repurchase agreement, 0.0500%, dated 6/30/21, maturing 7/1/21 to be repurchased at $22,500,031 collateralized by $2,754,410 in U.S. Government Agencies 2.5000% - 7.2500%, 6/15/24 - 3/20/51 and $19,959,638 in U.S. Treasuries 0.1250% - 0.3750%, 9/30/22 - 4/15/24 with a value of $22,950,032 | | 22,500,000 | | | 22,500,000 | |
| | Wells Fargo Securities LLC, Joint repurchase agreement, 0.0600%, dated 6/30/21, maturing 7/1/21 to be repurchased at $20,000,033 collateralized by $19,244,520 in U.S. Government Agencies 2.0000% - 4.5000%, 11/1/35 - 2/1/51 with a value of $20,400,034 | | 20,000,000 | | | 20,000,000 | |
Total Repurchase Agreements (cost $97,500,000) | | 97,500,000 | |
Total Investments (total cost $348,624,579) – 99.6% | | 348,624,579 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.4% | | 1,352,128 | |
Net Assets – 100% | | $349,976,707 | |
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See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
4 | JUNE 30, 2021 |
Janus Henderson Government Money Market Fund
Notes to Schedule of Investments and Other Information
| | |
LLC | Limited Liability Company |
LOC | Letter of Credit |
LP | Limited Partnership |
Money market funds may hold securities with stated maturities of greater than 397 days when those securities have features that allow a fund to “put” back the security to the issuer or to a third party within 397 days of acquisition. The maturity dates shown in the security descriptions are the stated maturity dates.
| | |
¶ | Variable rate demand notes are not based on a published reference rate and spread; they are determined by the issuer or remarketing agent and current market conditions. The reference rate in the security description is as of June 30, 2021. |
| | |
ë | The Fund may have elements of risk due to concentration of investments. Such concentrations may subject the Fund to additional risks. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
U.S. Government Agency Notes | $ | - | $ | 130,696,037 | $ | - |
U.S. Treasury Debt | | - | | 64,998,542 | | - |
Variable Rate Demand Notes | | - | | 55,430,000 | | - |
Repurchase Agreements | | - | | 97,500,000 | | - |
Total Assets | $ | - | $ | 348,624,579 | $ | - |
| | | | | | | |
Janus Henderson Government Money Market Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Investments, at value (cost $251,124,579) | | $ | 251,124,579 | |
| Repurchase agreements, at value (cost $97,500,000) | | | 97,500,000 | |
| Cash | | | 105,389 | |
| Non-interested Trustees' deferred compensation | | | 8,491 | |
| Receivables: | | | | |
| | Fund shares sold | | | 1,593,777 | |
| | Interest | | | 6,080 | |
| Other assets | | | 6 | |
Total Assets | | | 350,338,322 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 305,187 | |
| | Professional fees | | | 39,325 | |
| | Non-interested Trustees' deferred compensation fees | | | 8,491 | |
| | Advisory fees | | | 6,915 | |
| | Non-interested Trustees' fees and expenses | | | 1,356 | |
| | Dividends | | | 341 | |
Total Liabilities | | | 361,615 | |
Net Assets | | $ | 349,976,707 | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 349,979,464 | |
| Total distributable earnings (loss) | | | (2,757) | |
Total Net Assets | | $ | 349,976,707 | |
Net Assets - Class D Shares | | $ | 343,130,457 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 343,140,395 | |
Net Asset Value Per Share | | $ | 1.00 | |
Net Assets - Class T Shares | | $ | 6,846,250 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,846,494 | |
Net Asset Value Per Share | | $ | 1.00 | |
| | |
See Notes to Financial Statements. |
| |
6 | JUNE 30, 2021 |
Janus Henderson Government Money Market Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Interest | $ | 322,980 | |
| Other income | | 211 | |
Total Investment Income | | 323,191 | |
Expenses: | | | |
| Advisory fees | | 704,035 | |
| Administration services fees: | | | |
| | Class D Shares | | 1,241,936 | |
| | Class T Shares | | 26,735 | |
| Professional fees | | 40,475 | |
| Non-interested Trustees’ fees and expenses | | 6,178 | |
Total Expenses | | 2,019,359 | |
Less: Excess Expense Reimbursement and Waivers | | (1,703,102) | |
Net Expenses | | 316,257 | |
Net Investment Income/(Loss) | | 6,934 | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | | (2) | |
Total Net Realized Gain/(Loss) on Investments | | (2) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 6,932 | |
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| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Government Money Market Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 6,934 | | $ | 2,202,484 | |
| Net realized gain/(loss) on investments | | (2) | | | (18) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 6,932 | | | 2,202,466 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class D Shares | | (6,795) | | | (2,126,919) | |
| | Class T Shares | | (138) | | | (75,565) | |
Net Decrease from Dividends and Distributions to Shareholders | | (6,933) | | | (2,202,484) | |
Capital Share Transactions: | | | | | | |
| | Class D Shares | | 18,529,382 | | | 122,021,460 | |
| | Class T Shares | | (537,803) | | | (464,559) | |
Net Increase/(Decrease) from Capital Share Transactions | | 17,991,579 | | | 121,556,901 | |
Net Increase/(Decrease) in Net Assets | | 17,991,578 | | | 121,556,883 | |
Net Assets: | | | | | | |
| Beginning of period | | 331,985,129 | | | 210,428,246 | |
| End of period | $ | 349,976,707 | | $ | 331,985,129 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Government Money Market Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | —(2) | | | 0.01 | | | 0.02 | | | 0.01 | | | —(2) | |
| | Net realized and unrealized gain/(loss)(2) | | — | | | — | | | — | | | — | | | — | |
| Total from Investment Operations | | — | | | 0.01 | | | 0.02 | | | 0.01 | | | — | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | —(2) | | | (0.01) | | | (0.02) | | | (0.01) | | | —(2) | |
| Total Dividends and Distributions | | — | | | (0.01) | | | (0.02) | | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | |
| Total Return* | | 0.00% | | | 0.96% | | | 1.71% | | | 0.79% | | | 0.05% | |
| Net Assets, End of Period (in thousands) | | $343,130 | | | $324,601 | | | $202,580 | | | $188,213 | | | $179,761 | |
| Average Net Assets for the Period (in thousands) | | $344,963 | | | $252,388 | | | $197,526 | | | $185,892 | | | $181,337 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.57% | | | 0.63% | | | 0.69% | | | 0.69% | | | 0.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.09% | | | 0.49% | | | 0.59% | | | 0.59% | | | 0.58% | |
| | Ratio of Net Investment Income/(Loss) | | 0.00%(3) | | | 0.84% | | | 1.70% | | | 0.79% | | | 0.05% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | —(2) | | | 0.01 | | | 0.02 | | | 0.01 | | | —(2) | |
| | Net realized and unrealized gain/(loss)(2) | | — | | | — | | | — | | | — | | | — | |
| Total from Investment Operations | | — | | | 0.01 | | | 0.02 | | | 0.01 | | | — | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | —(2) | | | (0.01) | | | (0.02) | | | (0.01) | | | —(2) | |
| Total Dividends and Distributions | | — | | | (0.01) | | | (0.02) | | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | |
| Total Return* | | 0.00% | | | 0.94% | | | 1.70% | | | 0.76% | | | 0.04% | |
| Net Assets, End of Period (in thousands) | | $6,846 | | | $7,384 | | | $7,849 | | | $8,544 | | | $7,458 | |
| Average Net Assets for the Period (in thousands) | | $7,040 | | | $7,745 | | | $8,055 | | | $8,262 | | | $8,190 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.59% | | | 0.66% | | | 0.71% | | | 0.72% | | | 0.71% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.09% | | | 0.53% | | | 0.61% | | | 0.62% | | | 0.61% | |
| | Ratio of Net Investment Income/(Loss) | | 0.00%(3) | | | 0.98% | | | 1.67% | | | 0.76% | | | 0.04% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. (3) Less than 0.005%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Government Money Market Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Government Money Market Fund (the “Fund”) is a series fund. The Fund is part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 Funds which include multiple series of shares, with differing investment objectives and policies. The Fund seeks capital preservation and liquidity with current income as a secondary objective.
The Fund offers two classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer both classes of shares.
The Fund operates as a “government money market fund” as such term is defined in or interpreted under Rule 2a-7 under the Investment Company Act of 1940, as amended. As a government money market fund, the Fund pursues its investment objectives by normally investing at least 99.5% of its total assets in cash, U.S. Government securities, and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash and/or government securities).
As a government money market fund, the Fund is not required to impose a liquidity fee and/or a redemption gate on fund redemptions. The Trustees have determined not to subject the Fund to a liquidity fee and/or a redemption gate on fund redemptions. The Trustees have reserved its ability to change this determination with respect to liquidity fees and/or redemption gates, but only after providing appropriate prior notice to shareholders.
Shareholders, including individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus Henderson funds. Class D Shares are available only to investors who hold accounts directly with the Janus Henderson funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (“Janus Capital”) or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with US GAAP.
Liquidity
The Fund has adopted liquidity requirements (measured at the time of purchase) as noted:
The Fund will limit its investments in illiquid securities to 5% or less of its total assets.
Daily liquidity. The Fund will invest at least 10% of its total assets in “daily liquid assets,” which generally include cash (including demand deposits), direct obligations of the U.S. Government, securities (including repurchase agreements) that will mature or are subject to a demand feature that is exercisable and payable within one business day, and/or amounts receivable and due unconditionally within one business day on pending sales of portfolio securities.
Weekly liquidity. The Fund will invest at least 30% of its assets in “weekly liquid assets,” which generally include cash (including demand deposits), direct obligations of the U.S. Government, agency discount notes with remaining maturities of 60 days or less, and securities (including repurchase agreements) that will mature or are subject to a demand feature that is exercisable and payable within five business days.
Janus Henderson Government Money Market Fund
Notes to Financial Statements
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Investments held by the Fund are valued utilizing the amortized cost method of valuation permitted in accordance with Rule 2a-7 under the 1940 Act and certain conditions therein. Under the amortized cost method, which does not take into account unrealized capital gains or losses, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization to maturity of any discount or premium.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE.
Periodic review and monitoring of the valuation of short-term securities is performed in an effort to ensure that amortized cost approximates market value. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are
Janus Henderson Government Money Market Fund
Notes to Financial Statements
allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Dividends and Distributions
Dividends, if any, are declared daily and distributed monthly for the Fund. Realized capital gains, if any, are declared and distributed in December. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or the Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States.
Janus Henderson Government Money Market Fund
Notes to Financial Statements
These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through its investments in certain securities, including, but not limited to, repurchase agreements and debt securities. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Janus Henderson Government Money Market Fund
Notes to Financial Statements
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Goldman Sachs & Co. | $ | 10,000,000 | $ | — | $ | (10,000,000) | $ | — |
HSBC Securities (USA), Inc | | 10,000,000 | | — | | (10,000,000) | | — |
ING Financial Markets LLC | | 35,000,000 | | — | | (35,000,000) | | — |
Royal Bank of Canada, NY Branch | | 22,500,000 | | — | | (22,500,000) | | — |
Wells Fargo Securities LLC | | 20,000,000 | | — | | (20,000,000) | | — |
| | | | | | | | | |
Total | $ | 97,500,000 | $ | — | $ | (97,500,000) | $ | — |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
All repurchase agreements are transacted under legally enforceable master repurchase agreements that give the Fund, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the counterparty. For financial reporting purposes, the Fund does not offset financial instruments' payables and receivables and related collateral on the Statement of Assets and Liabilities. Repurchase agreements held by the Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest.
Repurchase Agreements
The Fund and other funds advised by Janus Capital or its affiliates may transfer daily uninvested cash balances into one or more joint trading accounts. Assets in the joint trading accounts are invested in money market instruments and the proceeds are allocated to the participating funds on a pro rata basis.
Repurchase agreements held by the Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings.
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt of less developed countries, 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 debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including, but not limited to, 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 debtor’s 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 debtor’s ability or willingness to timely service its debts. The Fund may be requested to participate in the rescheduling of such
Janus Henderson Government Money Market Fund
Notes to Financial Statements
sovereign debt and to extend further loans to governmental entities, which may adversely affect the Fund’s 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 Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
Variable and Floating Rate Notes
The Fund also may purchase variable and floating rate demand notes of corporations and other entities, which are unsecured obligations redeemable upon not more than 30 days’ notice. The Fund may purchase variable and floating rate demand notes of U.S. Government issuers or commercial banks. These obligations include master demand notes that permit investment of fluctuating amounts at varying rates of interest pursuant to direct arrangements with the issuer of the instrument. The issuer of these obligations often has the right, after a given period, to prepay the outstanding principal amount of the obligations upon a specified number of days’ notice. These obligations generally are not traded, nor generally is there an established secondary market for these obligations. To the extent a demand note does not have a seven day or shorter demand feature and there is no readily available market for the obligation, it is treated as an illiquid investment. The rate of interest on securities purchased by the Fund may be tied to short-term Treasury or other government securities or indices on securities that are permissible investments of the Fund, as well as other money market rates of interest. The Fund will not purchase securities whose values are tied to interest rates or indices that are not appropriate for the duration and volatility standards of a money market fund.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.20% of its average daily net assets.
Janus Capital may waive and/or reimburse additional fees to the extent necessary to assist the Fund in attempting to maintain a yield of at least 0.00%. These waivers and reimbursements are voluntary and could change or be terminated at any time at the discretion of Janus Capital. There is no guarantee that the Fund will maintain a positive yield. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statement of Operations.
Class D Shares and Class T Shares of the Fund compensate Janus Capital at an annual rate of 0.36% and 0.38%, respectively, of average daily net assets for providing certain administration services including, but not limited to, oversight and coordination of the Fund’s service providers, recordkeeping and registration functions and also to pay for costs such as shareholder servicing and custody. These amounts are disclosed as “Administration services fees” on the Statement of Operations. A portion of the Fund’s administration fee is paid to BNP Paribas Financial Services ("BPFS"). BPFS provides certain administrative services to the Fund, including services related to Fund accounting, calculation of the Fund’s daily NAV, and Fund audit, tax, and reporting obligations, pursuant to a sub-administration agreement with Janus Capital on behalf of the Fund. Janus Capital does not receive any additional compensation, beyond the administration services fee for serving as administrator.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Janus Henderson Government Money Market Fund
Notes to Financial Statements
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 5,116 | $ - | $ (20) | $ - | $ - | $ (7,853) | $ - | |
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended June 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $ (20) | $ - | $ (20) | | |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 6,933 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 2,202,484 | $ - | $ - | $ - | |
Janus Henderson Government Money Market Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class D Shares: | | | | | |
Shares sold | 283,357,789 | $283,357,788 | | 317,884,747 | $317,884,746 |
Reinvested dividends and distributions | 5,118 | 5,118 | | 2,093,457 | 2,093,457 |
Shares repurchased | (264,833,523) | (264,833,524) | | (197,956,742) | (197,956,743) |
Net Increase/(Decrease) | 18,529,384 | $ 18,529,382 | | 122,021,462 | $122,021,460 |
Class T Shares: | | | | | |
Shares sold | 10,516,520 | $ 10,516,520 | | 8,718,223 | $ 8,718,222 |
Reinvested dividends and distributions | 138 | 138 | | 75,224 | 75,224 |
Shares repurchased | (11,054,461) | (11,054,461) | | (9,258,005) | (9,258,005) |
Net Increase/(Decrease) | (537,803) | $ (537,803) | | (464,558) | $ (464,559) |
6. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Government Money Market Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Government Money Market Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Government Money Market Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the “Fund”) as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Monthly Portfolio Holdings
The Fund files its complete holdings in a monthly report on Form N-MFP within 5 business days after each month end. These reports (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that,
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the
Janus Henderson Government Money Market Fund
Additional Information (unaudited)
subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Government Money Market Fund
Useful Information About Your Fund Report (unaudited)
Performance Overviews
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
Janus Henderson Government Money Market Fund
Useful Information About Your Fund Report (unaudited)
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Government Money Market Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Section 163(j) Interest Dividend | 81% |
Janus Henderson Government Money Market Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Government Money Market Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Government Money Market Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Government Money Market Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Government Money Market Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Government Money Market Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Government Money Market Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
David Spilsted
151 Detroit Street
Denver, CO 80206
DOB: 1963 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Government Money Market Fund | 7/17-Present | Portfolio Manager for other Janus Henderson accounts and Analyst for Janus Henderson Investors. |
Garrett Strum
151 Detroit Street
Denver, CO 80206
DOB: 1981 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Government Money Market Fund | 5/17-Present | Portfolio Manager for other Janus Henderson accounts and Analyst for Janus Henderson Investors. |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
Janus Henderson Government Money Market Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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| | | | |
This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93025 08-21 |
| | | |
| | | |
| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson High-Yield Fund |
| | |
| | Janus Investment Fund |
| |
| | | |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson High-Yield Fund
Janus Henderson High-Yield Fund (unaudited)
| | | | | | |
FUND SNAPSHOT A high-conviction, active high-yield fund that seeks to generate competitive risk-adjusted returns while mitigating drawdowns. The Fund takes a research-first mentality on both macro and security selection risks. | | | | 
Seth Meyer co-portfolio manager | 
Brent Olson co-portfolio manager |
| | | |
PERFORMANCE OVERVIEW
During the one-year period ended June 30, 2021, Janus Henderson High-Yield Fund’s Class I Shares returned 16.99% compared with a 15.37% return for the Fund’s benchmark, the Bloomberg Barclays U.S. Corporate High-Yield Bond Index.
MARKET ENVIRONMENT
The period began amid economically damaging social distancing measures put in place by governments worldwide to mitigate the spread of COVID-19. However, U.S. credit markets had already begun recovering from their March lows as significant monetary and fiscal stimulus supported the markets and mid-period vaccine developments created optimism around a potential economic reopening in 2021. Indeed, during the second half of the period, vaccines were distributed at a faster-than-expected-rate and cyclical industries rebounded sharply as consumers began to resume aspects of their lifestyles that had previously been restricted.
Strong consumer spending coupled with supply chain issues and the residual effects of monetary and fiscal stimulus measures then brought on concerns of inflation. Yields on longer-term Treasury bonds rose quickly during February and March. However, inflation expectations moderated by period end as certain commodity prices cooled and market participants gravitated toward the Federal Reserve’s (Fed) view that many aspects of inflation should be transitory. Ultimately, the yield on the 5-year note closed June at 0.89%, up from 0.29% a year earlier.
High-yield bonds, which are typically more sensitive to an improving economic environment than Treasury moves, generated double-digit gains. Despite a robust new issuance market, high-yield spreads compressed to their tightest post-Global Financial Crisis levels. CCC rated bonds outperformed higher-rated tiers as investors eager for higher yields felt comfortable adding additional credit risk.
PERFORMANCE DISCUSSION
We had a favorable view on the U.S. economy and believed the Fed was likely to remain accommodative, which should benefit high-yield bonds. Further, the high-yield market increasingly focused on improving economic fundamentals, becoming more confident in sustained economic growth, lower default rates and improved corporate earnings in 2021.
Fund performance benefited from our early-period rotation into more cyclical sectors, including gaming and metals and mining, as well as our investment-grade exposure. As valuations tightened and investors’ showed appetite for more credit risk, we rotated from certain stronger-performing investment-grade names into lower-rated issuers, enabling us to capture some of the robust performance in the lowest tiers of the high-yield market; although, we trimmed our overweights in CCC and CC rated securities near period end, after strong performance.
Over the period, we also added significant exposure to the BB rated segment of the market, seeking to identify individual names that we think have the potential to be “rising stars” – securities that, in our view, could see sufficient rating improvement to push them into the investment-grade market in the years ahead. Additionally, we sought to capitalize on what we deemed to be attractively priced new issues from companies with quality business models.
Strong security selection aided relative outperformance during the period particularly in the gaming, automotive and independent energy sectors. Our asset allocation decisions, including the Fund’s exposure to equity and equity-like securities also contributed to incremental results. An equity position in Caesars Entertainment benefited from improved visitation rates as the period progressed and from the casino operator’s better-than-expected earnings results. Positioning in Ford also aided relative returns – we held the company’s debt earlier in the period, but subsequently rotated into equity, believing
Janus Henderson High-Yield Fund (unaudited)
it presented a more attractive risk-adjusted opportunity. Successfully navigating Ford’s capital structure was a meaningful contributor. Bonds of Great Western Petroleum were also additive to incremental returns. We had expected the company to refinance bonds maturing this year, which they did, and our position was tendered at par.
Gains were partially offset by our positionings in the retailers sector and lack of exposure to names that did not meet our strict criteria for inclusion in the portfolio. Specifically, our lack of exposure to the CCC rated names in the oil field services sector detracted. A zero weight in a multinational business jet manufacturer that constitutes a large position in the index also weighed on returns when the company was able to execute on a long overdue asset sale of its rail business – the proceeds of which were earmarked to pay down debt. Computer memory manufacturer Micron Technology further held back results due to a weak environment for NAND memory. We sold the position in the first half of the period and redeployed the proceeds into higher-conviction ideas. Our modest cash position also detracted; cash is not used as a strategy within the Fund but is a residual of our investment process.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We continue to expect strong economic growth, fueled by the combination of excess aggregate consumer savings, fiscal stimulus and pent-up demand. The positive effect on company fundamentals, and high-yield companies in particular, can be seen in the steady decline of default expectations. While forecasts vary, it is possible that the coming quarters will produce the lowest default rate in the history of the high-yield index, at levels below 1%.
Additionally, the market is entering a multi-year period where the volume of short-dated maturities is relatively benign. With little debt maturing, there is less need to access markets, further improving the outlook for short-term risk-adjusted returns. Between the positive fundamental outlook, declining defaults, and the ongoing demand for yield in a low-yield environment, we expect that high-yield bond spreads are likely to continue to tighten, despite nearing historic lows.
We expect BB rated bonds will outperform the general market in the quarters ahead. This is due in part to the potential for historic credit upgrades amid a historic recovery, but relative valuations favor BB securities as well. On a risk-adjusted basis, BB securities currently offer around four times the yield of BBB investment-grade securities – a historic aberration that is more likely to be corrected than extended.
While high-yield portfolio returns in 2020 were largely determined by the broad market shock and recovery from COVID-19, we anticipate overall returns in 2021 will be determined by the relative performance of individual sectors and companies. Selectivity will be essential. However, we believe opportunities will continue to present themselves, whether as a result of perceived mispricings in the market, or the inevitability of volatility.
Thank you for your investment in Janus Henderson High-Yield Fund.
Janus Henderson High-Yield Fund (unaudited)
Fund At A Glance
June 30, 2021
| | | |
Fund Profile | | |
30-day Current Yield* | Without
Reimbursement | With
Reimbursement |
Class A Shares NAV | 3.67% | 3.67% |
Class A Shares MOP | 3.50% | 3.50% |
Class C Shares** | 2.89% | 2.93% |
Class D Shares | 3.86% | 3.87% |
Class I Shares | 3.92% | 3.92% |
Class N Shares | 4.00% | 4.00% |
Class R Shares | 3.22% | 3.25% |
Class S Shares | 3.37% | 3.50% |
Class T Shares | 3.75% | 3.75% |
Weighted Average Maturity | 6.7 Years |
Average Effective Duration*** | 3.7 Years |
* Yield will fluctuate. | | |
** Does not include the 1.00% contingent deferred sales charge. |
*** A theoretical measure of price volatility. | |
| | |
Ratings† Summary - (% of Total Investments) | |
BBB | 2.5% |
BB | 43.4% |
B | 37.6% |
CCC | 11.1% |
Not Rated | -0.5% |
Other | 5.9% |
† Credit ratings provided by Standard & Poor's (S&P), an independent credit rating agency. Credit ratings range from AAA (highest) to D (lowest) based on S&P's measures. Further information on S&P's rating methodology may be found at www.standardandpoors.com. Other rating agencies may rate the same securities differently. Ratings are relative and subjective and are not absolute standards of quality. Credit quality does not remove market risk and is subject to change. "Not Rated" securities are not rated by S&P, but may be rated by other rating agencies and do not necessarily indicate low quality. "Other" includes cash equivalents, equity securities, and certain derivative instruments. |
Significant Areas of Investment - (% of Net Assets)
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Corporate Bonds | | 87.2% | |
Bank Loans and Mezzanine Loans | | 4.8% | |
Preferred Stocks | | 2.3% | |
Common Stocks | | 2.2% | |
Investment Companies | | 1.9% | |
Investments Purchased with Cash Collateral from Securities Lending | | 1.9% | |
Asset-Backed/Commercial Mortgage-Backed Securities | | 0.6% | |
Other | | (0.9)% |
| | | 100.0% |
Janus Henderson High-Yield Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 16.56% | 6.60% | 5.75% | 7.17% | | | 0.98% | 0.98% |
Class A Shares at MOP | | 10.99% | 5.56% | 5.23% | 6.97% | | | | |
Class C Shares at NAV | | 15.86% | 5.90% | 5.03% | 6.43% | | | 1.72% | 1.72% |
Class C Shares at CDSC | | 14.86% | 5.90% | 5.03% | 6.43% | | | | |
Class D Shares | | 16.93% | 6.86% | 5.99% | 7.31% | | | 0.77% | 0.77% |
Class I Shares | | 16.99% | 6.93% | 6.07% | 7.34% | | | 0.72% | 0.72% |
Class N Shares | | 17.09% | 7.02% | 6.13% | 7.35% | | | 0.62% | 0.62% |
Class R Shares | | 16.20% | 6.15% | 5.33% | 6.71% | | | 1.57% | 1.39% |
Class S Shares | | 16.47% | 6.42% | 5.60% | 6.97% | | | 1.30% | 1.13% |
Class T Shares | | 16.82% | 6.77% | 5.90% | 7.26% | | | 0.87% | 0.87% |
Bloomberg Barclays U.S. Corporate High-Yield Bond Index | | 15.37% | 7.48% | 6.66% | 7.12% | | | | |
Morningstar Quartile - Class T Shares | | 1st | 2nd | 2nd | 1st | | | | |
Morningstar Ranking - based on total returns for High Yield Bond Funds | | 171/693 | 219/634 | 160/489 | 16/200 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 4.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Janus Henderson High-Yield Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund's Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective share class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund's former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares of the Fund commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund's former Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares of the Fund commenced operations on May 31, 2012. Performance shown for periods prior to May 31, 2012, reflects the performance of the Fund's Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – December 29, 1995
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson High-Yield Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
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| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $1,039.30 | $4.70 | | $1,000.00 | $1,020.18 | $4.66 | 0.93% |
Class C Shares | $1,000.00 | $1,035.80 | $8.03 | | $1,000.00 | $1,016.91 | $7.95 | 1.59% |
Class D Shares | $1,000.00 | $1,041.50 | $3.70 | | $1,000.00 | $1,021.17 | $3.66 | 0.73% |
Class I Shares | $1,000.00 | $1,040.60 | $3.44 | | $1,000.00 | $1,021.42 | $3.41 | 0.68% |
Class N Shares | $1,000.00 | $1,042.20 | $3.04 | | $1,000.00 | $1,021.82 | $3.01 | 0.60% |
Class R Shares | $1,000.00 | $1,037.20 | $6.97 | | $1,000.00 | $1,017.95 | $6.90 | 1.38% |
Class S Shares | $1,000.00 | $1,038.40 | $5.56 | | $1,000.00 | $1,019.34 | $5.51 | 1.10% |
Class T Shares | $1,000.00 | $1,039.80 | $4.20 | | $1,000.00 | $1,020.68 | $4.16 | 0.83% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson High-Yield Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– 0.6% | | | |
| | Amercian Airlines Inc / AAdvantage Loyalty IP Ltd, 5.5000%, 4/20/26 (144A) | | $4,091,000 | | | $4,331,346 | |
| | Amercian Airlines Inc / AAdvantage Loyalty IP Ltd, 5.7500%, 4/20/29 (144A) | | 3,035,000 | | | 3,281,594 | |
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $7,126,000) | | 7,612,940 | |
Bank Loans and Mezzanine Loans– 4.8% | | | |
Basic Industry – 0.2% | | | |
| | Aruba Investments Holdings LLC, | | | | | | |
| | ICE LIBOR USD 3 Month + 7.7500%, 8.5000%, 11/24/28‡ | | 2,497,000 | | | 2,505,315 | |
Brokerage – 0.3% | | | |
| | Jane Street Group LLC, ICE LIBOR USD 1 Month + 2.7500%, 2.8543%, 1/26/28‡ | | 2,859,630 | | | 2,844,302 | |
Capital Goods – 0.4% | | | |
| | Arcline FM Holdings LLC, ICE LIBOR USD 3 Month + 4.7500%, 5.5000%, 6/16/28‡ | | 2,075,000 | | | 2,076,307 | |
| | Arcline FM Holdings LLC, ICE LIBOR USD 3 Month + 8.2500%, 9.0000%, 6/15/29‡ | | 2,582,000 | | | 2,582,000 | |
| | | 4,658,307 | |
Communications – 0.6% | | | |
| | CCI Buyer Inc, ICE LIBOR USD 3 Month + 4.0000%, 4.7500%, 12/17/27‡ | | 2,288,423 | | | 2,290,872 | |
| | Formula One Management Ltd, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.5000%, 3.5000%, 2/1/24‡ | | 5,290,845 | | | 5,258,624 | |
| | | 7,549,496 | |
Consumer Cyclical – 1.8% | | | |
| | 18 Fremont Street Acquisition LLC, | | | | | | |
| | ICE LIBOR USD 3 Month + 8.0000%, 9.5000%, 8/9/25‡ | | 4,715,183 | | | 4,809,486 | |
| | Boardriders Inc, ICE LIBOR USD 3 Month + 8.0000%, 9.0000%, 4/23/24‡,¢ | | 326,316 | | | 326,316 | |
| | Enterprise Development Authority/The, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.2500%, 5.0000%, 2/28/28‡ | | 2,482,472 | | | 2,488,678 | |
| | Flynn Restaurant Group LP, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.5000%, 3.6043%, 6/27/25‡ | | 1,807,513 | | | 1,792,981 | |
| | K-MAC Holdings Corp, ICE LIBOR USD 3 Month + 6.7500%, 9.0000%, 3/16/26‡ | | 1,411,606 | | | 1,417,408 | |
| | Kodiak BP LLC, ICE LIBOR USD 3 Month + 3.2500%, 4.0000%, 3/12/28‡ | | 815,955 | | | 814,168 | |
| | Mic Glen LLC, ICE LIBOR USD 1 Month + 6.7500%, 7.2500%, 6/23/29ƒ,‡ | | 3,064,676 | | | 3,078,467 | |
| | Tacala Investment Corp, ICE LIBOR USD 1 Month + 7.5000%, 8.2500%, 2/4/28‡ | | 6,817,969 | | | 6,822,264 | |
| | | 21,549,768 | |
Consumer Non-Cyclical – 0.5% | | | |
| | City Brewing Co LLC, ICE LIBOR USD 3 Month + 3.5000%, 4.2500%, 4/5/28‡ | | 2,568,367 | | | 2,577,999 | |
| | Journey Personal Care Corp, | | | | | | |
| | ICE LIBOR USD 3 Month + 4.2500%, 5.0000%, 3/1/28‡ | | 2,671,647 | | | 2,676,670 | |
| | National Mentor Holdings Inc, | | | | | | |
| | ICE LIBOR USD 1 Month + 7.2500%, 8.0000%, 3/2/29‡ | | 759,111 | | | 768,600 | |
| | | 6,023,269 | |
Technology – 0.8% | | | |
| | Magenta Buyer LLC, ICE LIBOR USD 1 Month + 8.2500%, 9.0000%, 5/3/29ƒ,‡ | | 7,098,000 | | | 7,009,275 | |
| | Proofpoint Inc, ICE LIBOR USD 1 Month + 3.2500%, 3.7500%, 6/9/28ƒ,‡ | | 2,948,000 | | | 2,929,958 | |
| | | 9,939,233 | |
Transportation – 0.2% | | | |
| | AAdvantage Loyalty IP Ltd, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.7500%, 5.5000%, 4/20/28‡ | | 2,108,000 | | | 2,196,009 | |
Total Bank Loans and Mezzanine Loans (cost $56,595,224) | | 57,265,699 | |
Corporate Bonds– 87.2% | | | |
Banking – 0.4% | | | |
| | Credit Suisse Group AG, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.5540%, 4.5000% (144A)‡,µ | | 4,532,000 | | | 4,497,557 | |
Basic Industry – 5.6% | | | |
| | Arconic Rolled Products, 6.1250%, 2/15/28 (144A) | | 7,187,000 | | | 7,709,639 | |
| | CVR Partners LP / CVR Nitrogen Finance Corp, 6.1250%, 6/15/28 (144A) | | 3,408,000 | | | 3,493,200 | |
| | Freeport-McMoRan Inc, 4.6250%, 8/1/30 | | 5,268,000 | | | 5,768,460 | |
| | Herens Holdco Sarl, 4.7500%, 5/15/28 (144A) | | 1,085,000 | | | 1,079,575 | |
| | Hudbay Minerals Inc, 4.5000%, 4/1/26 (144A) | | 4,705,000 | | | 4,722,644 | |
| | Hudbay Minerals Inc, 6.1250%, 4/1/29 (144A) | | 5,384,000 | | | 5,733,960 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson High-Yield Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Basic Industry– (continued) | | | |
| | INEOS Quattro Finance 2 PLC, 3.3750%, 1/15/26 (144A) | | $2,870,000 | | | $2,907,970 | |
| | Kaiser Aluminum Corp, 4.5000%, 6/1/31 (144A) | | 3,455,000 | | | 3,543,241 | |
| | Novelis Corp, 4.7500%, 1/30/30 (144A) | | 4,483,000 | | | 4,707,150 | |
| | OCI NV, 5.2500%, 11/1/24 (144A) | | 1,841,000 | | | 1,897,519 | |
| | Olin Corp, 5.6250%, 8/1/29 | | 6,287,000 | | | 6,901,869 | |
| | Polar US Borrower LLC, 6.7500%, 5/15/26 (144A) | | 4,876,000 | | | 4,882,095 | |
| | SCIH Salt Holdings Inc, 4.8750%, 5/1/28 (144A) | | 7,716,000 | | | 7,715,074 | |
| | Trinseo Materials Operating SCA / Trinseo Materials Finance Inc, | | | | | | |
| | 5.1250%, 4/1/29 (144A) | | 2,779,000 | | | 2,841,528 | |
| | Univar Solutions USA Inc, 5.1250%, 12/1/27 (144A) | | 2,765,000 | | | 2,906,706 | |
| | | 66,810,630 | |
Brokerage – 0.9% | | | |
| | Compass Group Diversified Holdings LLC, 5.2500%, 4/15/29 (144A) | | 2,644,000 | | | 2,749,760 | |
| | LPL Holdings Inc, 4.3750%, 5/15/31 (144A) | | 7,372,000 | | | 7,454,935 | |
| | | 10,204,695 | |
Capital Goods – 7.9% | | | |
| | APi Group DE Inc, 4.1250%, 7/15/29 (144A) | | 3,763,000 | | | 3,741,852 | |
| | ARD Finance SA, 6.5000% (6.50% Cash or 7.25% PIK), 6/30/27 (144A)Ø | | 14,513,175 | | | 15,246,347 | |
| | Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc, | | | | | | |
| | 5.2500%, 8/15/27 (144A) | | 6,942,000 | | | 7,080,840 | |
| | Atkore Inc, 4.2500%, 6/1/31 (144A) | | 1,200,000 | | | 1,215,360 | |
| | Beacon Roofing Supply Inc, 4.1250%, 5/15/29 (144A) | | 3,550,000 | | | 3,540,930 | |
| | BWX Technologies Inc, 4.1250%, 4/15/29 (144A) | | 2,257,000 | | | 2,296,498 | |
| | CP Atlas Buyer Inc, 7.0000%, 12/1/28 (144A) | | 2,797,000 | | | 2,898,391 | |
| | JELD-WEN Inc, 4.8750%, 12/15/27 (144A) | | 4,823,000 | | | 5,012,158 | |
| | LABL Escrow Issuer LLC, 6.7500%, 7/15/26 (144A) | | 2,677,000 | | | 2,855,636 | |
| | LABL Escrow Issuer LLC, 10.5000%, 7/15/27 (144A) | | 5,036,000 | | | 5,552,190 | |
| | Madison IAQ LLC, 5.8750%, 6/30/29 (144A) | | 4,675,000 | | | 4,756,812 | |
| | Standard Industries Inc/NJ, 3.3750%, 1/15/31 (144A) | | 7,941,000 | | | 7,601,205 | |
| | Summit Materials LLC / Summit Materials Finance Corp, | | | | | | |
| | 5.2500%, 1/15/29 (144A) | | 5,524,000 | | | 5,868,863 | |
| | Titan International Inc, 7.0000%, 4/30/28 (144A) | | 5,033,000 | | | 5,265,776 | |
| | TransDigm Inc, 4.8750%, 5/1/29 (144A) | | 11,839,000 | | | 11,951,470 | |
| | Vertical Holdco GmbH, 7.6250%, 7/15/28 (144A) | | 3,694,000 | | | 4,008,692 | |
| | Vertical US Newco Inc, 5.2500%, 7/15/27 (144A) | | 3,245,000 | | | 3,419,419 | |
| | White Cap Parent LLC, 8.2500% (8.25% Cash or 9.00% PIK), 3/15/26 (144A)#,Ø | | 1,783,000 | | | 1,844,799 | |
| | | 94,157,238 | |
Communications – 13.5% | | | |
| | Altice Financing SA, 5.0000%, 1/15/28 (144A) | | 6,351,000 | | | 6,225,060 | |
| | Altice France Holding SA, 10.5000%, 5/15/27 (144A) | | 4,585,000 | | | 5,095,081 | |
| | Altice France SA, 5.1250%, 7/15/29 (144A) | | 8,776,000 | | | 8,819,002 | |
| | Block Communications Inc, 4.8750%, 3/1/28 (144A) | | 6,753,000 | | | 6,888,060 | |
| | Cablevision Lightpath LLC, 5.6250%, 9/15/28 (144A) | | 2,803,000 | | | 2,854,855 | |
| | CCO Holdings LLC / CCO Holdings Capital Corp, 5.1250%, 5/1/27 (144A) | | 5,136,000 | | | 5,387,150 | |
| | CCO Holdings LLC / CCO Holdings Capital Corp, 5.0000%, 2/1/28 (144A) | | 3,551,000 | | | 3,724,111 | |
| | CCO Holdings LLC / CCO Holdings Capital Corp, 4.5000%, 8/15/30 (144A) | | 4,365,000 | | | 4,544,899 | |
| | CCO Holdings LLC / CCO Holdings Capital Corp, 4.5000%, 6/1/33 (144A) | | 5,033,000 | | | 5,150,068 | |
| | Connect Finco Sarl / Connect US Finco LLC, 6.7500%, 10/1/26 (144A) | | 7,453,000 | | | 7,881,547 | |
| | Consolidated Communications Inc, 5.0000%, 10/1/28 (144A) | | 4,560,000 | | | 4,622,700 | |
| | CSC Holdings LLC, 5.3750%, 2/1/28 (144A) | | 6,534,000 | | | 6,912,645 | |
| | CSC Holdings LLC, 7.5000%, 4/1/28 (144A) | | 5,522,000 | | | 6,060,395 | |
| | CSC Holdings LLC, 5.7500%, 1/15/30 (144A) | | 3,741,000 | | | 3,885,964 | |
| | CSC Holdings LLC, 4.6250%, 12/1/30 (144A) | | 8,275,000 | | | 8,118,685 | |
| | DISH DBS Corp, 5.1250%, 6/1/29 (144A) | | 2,600,000 | | | 2,567,318 | |
| | Front Range BidCo Inc, 4.0000%, 3/1/27 (144A) | | 5,931,000 | | | 5,890,195 | |
| | GCI LLC, 4.7500%, 10/15/28 (144A) | | 6,538,000 | | | 6,691,643 | |
| | Gray Television Inc, 4.7500%, 10/15/30 (144A) | | 6,874,000 | | | 6,850,147 | |
| | LCPR Senior Secured Financing DAC, 6.7500%, 10/15/27 (144A) | | 3,655,000 | | | 3,938,993 | |
| | LCPR Senior Secured Financing DAC, 5.1250%, 7/15/29 (144A) | | 3,397,000 | | | 3,511,649 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson High-Yield Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Communications– (continued) | | | |
| | Level 3 Financing Inc, 3.6250%, 1/15/29 (144A) | | $4,574,000 | | | $4,413,910 | |
| | Liberty Interactive LLC, 8.2500%, 2/1/30 | | 7,598,000 | | | 8,684,572 | |
| | Northwest Fiber LLC / Northwest Fiber Finance Sub Inc, | | | | | | |
| | 6.0000%, 2/15/28 (144A) | | 2,856,000 | | | 2,862,255 | |
| | Sirius XM Radio Inc, 4.0000%, 7/15/28 (144A) | | 4,261,000 | | | 4,388,830 | |
| | Summer (BC) Bidco B LLC, 5.5000%, 10/31/26 (144A) | | 898,000 | | | 912,988 | |
| | Uniti Group LP / Uniti Group Finance Inc, 6.5000%, 2/15/29 (144A) | | 3,918,000 | | | 3,927,795 | |
| | Univision Communications Inc, 4.5000%, 5/1/29 (144A) | | 2,977,000 | | | 2,999,327 | |
| | Virgin Media Finance PLC, 5.0000%, 7/15/30 (144A) | | 2,771,000 | | | 2,799,514 | |
| | Windstream Escrow LLC, 7.7500%, 8/15/28 (144A) | | 7,067,000 | | | 7,279,010 | |
| | Ziggo BV, 5.1250%, 2/28/30 (144A) | | 6,300,000 | | | 6,447,987 | |
| | | 160,336,355 | |
Construction & Engineering – 0.2% | | | |
| | Arcosa Inc, 4.3750%, 4/15/29 (144A) | | 1,846,000 | | | 1,878,305 | |
Consumer Cyclical – 18.6% | | | |
| | 1011778 BC ULC / New Red Finance Inc, 4.0000%, 10/15/30 (144A) | | 9,682,000 | | | 9,367,335 | |
| | American Axle & Manufacturing Inc, 6.8750%, 7/1/28# | | 3,164,000 | | | 3,455,658 | |
| | Arches Buyer Inc, 4.2500%, 6/1/28 (144A) | | 2,267,000 | | | 2,241,496 | |
| | Bloomin' Brands Inc, 5.1250%, 4/15/29 (144A) | | 4,011,000 | | | 4,121,302 | |
| | Caesars Resort Collection LLC / CRC Finco Inc, 5.2500%, 10/15/25 (144A) | | 2,885,000 | | | 2,921,062 | |
| | Carnival Corp, 7.6250%, 3/1/26 (144A) | | 3,165,000 | | | 3,437,981 | |
| | Carrols Restaurant Group Inc, 5.8750%, 7/1/29 (144A) | | 2,243,000 | | | 2,212,159 | |
| | Cars.com Inc, 6.3750%, 11/1/28 (144A) | | 2,655,000 | | | 2,831,664 | |
| | Carvana Co, 5.5000%, 4/15/27 (144A) | | 4,501,000 | | | 4,648,318 | |
| | CCM Merger Inc, 6.3750%, 5/1/26 (144A) | | 1,312,000 | | | 1,377,600 | |
| | Century Communities Inc, 5.8750%, 7/15/25 | | 2,812,000 | | | 2,908,227 | |
| | Cinemark USA Inc, 5.2500%, 7/15/28 (144A) | | 4,086,000 | | | 4,188,150 | |
| | Colt Merger Sub Inc, 5.7500%, 7/1/25 (144A) | | 2,622,000 | | | 2,762,933 | |
| | Downstream Development Authority of the Quapaw Tribe of Oklahoma, | | | | | | |
| | 10.5000%, 2/15/23 (144A) | | 9,325,000 | | | 9,719,914 | |
| | Ford Motor Co, 8.5000%, 4/21/23 | | 3,005,000 | | | 3,353,430 | |
| | Ford Motor Co, 9.0000%, 4/22/25 | | 10,174,000 | | | 12,543,219 | |
| | Ford Motor Co, 6.3750%, 2/1/29 | | 605,000 | | | 702,708 | |
| | Ford Motor Co, 9.6250%, 4/22/30 | | 4,089,000 | | | 5,867,715 | |
| | Ford Motor Co, 7.4500%, 7/16/31 | | 6,511,000 | | | 8,561,965 | |
| | Ford Motor Co, 4.7500%, 1/15/43 | | 3,384,000 | | | 3,595,500 | |
| | Full House Resorts Inc, 8.2500%, 2/15/28 (144A) | | 5,105,000 | | | 5,564,450 | |
| | General Motors Financial Co Inc, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.5980%, 5.7500%‡,µ | | 4,793,000 | | | 5,216,653 | |
| | GoDaddy Operating Co LLC / GD Finance Co Inc, 3.5000%, 3/1/29 (144A) | | 3,623,000 | | | 3,599,450 | |
| | Golden Entertainment Inc, 7.6250%, 4/15/26 (144A) | | 3,746,000 | | | 3,980,125 | |
| | Goodyear Tire & Rubber Co/The, 5.2500%, 4/30/31 | | 4,968,000 | | | 5,185,350 | |
| | Goodyear Tire & Rubber Co/The, 5.2500%, 7/15/31 (144A) | | 3,411,000 | | | 3,564,495 | |
| | IRB Holding Corp, 7.0000%, 6/15/25 (144A) | | 2,746,000 | | | 2,965,735 | |
| | Jaguar Land Rover Automotive PLC, 7.7500%, 10/15/25 (144A) | | 2,707,000 | | | 2,970,932 | |
| | Jaguar Land Rover Automotive PLC, 5.8750%, 1/15/28 (144A) | | 3,580,000 | | | 3,767,950 | |
| | JB Poindexter & Co Inc, 7.1250%, 4/15/26 (144A) | | 2,837,000 | | | 2,996,581 | |
| | Life Time Inc, 5.7500%, 1/15/26 (144A) | | 5,555,000 | | | 5,756,369 | |
| | Life Time Inc, 8.0000%, 4/15/26 (144A) | | 2,673,000 | | | 2,848,723 | |
| | Lithia Motors Inc, 3.8750%, 6/1/29 (144A) | | 1,296,000 | | | 1,343,369 | |
| | Lithia Motors Inc, 4.3750%, 1/15/31 (144A) | | 5,471,000 | | | 5,860,043 | |
| | LSF9 Atlantis Holdings LLC / Victra Finance Corp, 7.7500%, 2/15/26 (144A) | | 3,757,000 | | | 3,896,234 | |
| | Newco GB SAS, 8.0000% (8.00% Cash or 8.75% PIK), 12/15/22Ø | | 1,873,914 | EUR | | 2,243,942 | |
| | Nordstrom Inc, 5.0000%, 1/15/44 | | 3,923,000 | | | 3,910,042 | |
| | Prime Security Services Borrower LLC / Prime Finance Inc, | | | | | | |
| | 3.3750%, 8/31/27 (144A) | | 2,018,000 | | | 1,957,460 | |
| | Realogy Group LLC / Realogy Co-Issuer Corp, 5.7500%, 1/15/29 (144A) | | 2,789,000 | | | 2,915,593 | |
| | Rent-A-Center Inc, 6.3750%, 2/15/29 (144A) | | 3,913,000 | | | 4,201,584 | |
| | Service Corporation International, 4.0000%, 5/15/31 | | 2,276,000 | | | 2,323,056 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson High-Yield Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Consumer Cyclical– (continued) | | | |
| | Shea Homes LP / Shea Homes Funding Corp, 4.7500%, 4/1/29 (144A) | | $6,203,000 | | | $6,369,737 | |
| | Taylor Morrison Home Corp, 5.1250%, 8/1/30 (144A) | | 2,663,000 | | | 2,886,372 | |
| | Twin River Worldwide Holdings Inc, 6.7500%, 6/1/27 (144A) | | 8,825,000 | | | 9,404,185 | |
| | Vail Resorts Inc, 6.2500%, 5/15/25 (144A) | | 6,450,000 | | | 6,903,951 | |
| | VICI Properties LP / VICI Note Co Inc, 4.1250%, 8/15/30 (144A) | | 4,601,000 | | | 4,724,399 | |
| | Weekley Homes LLC / Weekly Finance Corp, 4.8750%, 9/15/28 (144A) | | 1,872,000 | | | 1,937,520 | |
| | Wendy's International LLC, 7.0000%, 12/15/25 | | 2,072,000 | | | 2,331,000 | |
| | WW International Inc, 4.5000%, 4/15/29 (144A) | | 1,653,000 | | | 1,665,398 | |
| | Wyndham Destinations Inc, 6.6000%, 10/1/25 | | 4,492,000 | | | 5,048,963 | |
| | Wyndham Destinations Inc, 6.6250%, 7/31/26 (144A) | | 3,691,000 | | | 4,181,903 | |
| | Wynn Macau Ltd, 5.6250%, 8/26/28 (144A) | | 4,679,000 | | | 4,877,857 | |
| | Yum! Brands Inc, 3.6250%, 3/15/31 | | 2,938,000 | | | 2,923,310 | |
| | | 221,141,067 | |
Consumer Non-Cyclical – 14.5% | | | |
| | Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC, | | | | | | |
| | 4.6250%, 1/15/27 (144A) | | 4,546,000 | | | 4,754,889 | |
| | Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC, | | | | | | |
| | 4.8750%, 2/15/30 (144A) | | 6,610,000 | | | 7,049,631 | |
| | AMN Healthcare Inc, 4.6250%, 10/1/27 (144A) | | 6,752,000 | | | 7,016,678 | |
| | Ardent Health Services LLC, 5.7500%, 7/15/29 (144A) | | 1,600,000 | | | 1,622,000 | |
| | Bausch Health Americas Inc, 8.5000%, 1/31/27 (144A) | | 3,884,000 | | | 4,221,520 | |
| | Bausch Health Cos Inc, 9.0000%, 12/15/25 (144A) | | 5,168,000 | | | 5,541,646 | |
| | Bausch Health Cos Inc, 5.0000%, 1/30/28 (144A) | | 7,009,000 | | | 6,649,789 | |
| | Bausch Health Cos Inc, 4.8750%, 6/1/28 (144A) | | 2,041,000 | | | 2,088,964 | |
| | Bausch Health Cos Inc, 5.0000%, 2/15/29 (144A) | | 1,732,000 | | | 1,615,090 | |
| | CHS / Community Health Systems Inc, 6.6250%, 2/15/25 (144A) | | 3,320,000 | | | 3,510,867 | |
| | CHS / Community Health Systems Inc, 6.8750%, 4/15/29 (144A) | | 3,762,000 | | | 3,936,820 | |
| | DaVita Inc, 3.7500%, 2/15/31 (144A) | | 5,737,000 | | | 5,507,520 | |
| | Dole Food Co Inc, 7.2500%, 6/15/25 (144A) | | 8,355,000 | | | 8,522,100 | |
| | FAGE International SA / FAGE USA Dairy Industry Inc, | | | | | | |
| | 5.6250%, 8/15/26 (144A) | | 2,978,000 | | | 3,066,447 | |
| | Fresh Market Inc/The, 9.7500%, 5/1/23 (144A) | | 3,129,000 | | | 3,208,320 | |
| | Hadrian Merger Sub Inc, 8.5000%, 5/1/26 (144A) | | 5,312,000 | | | 5,537,760 | |
| | HLF Financing Sarl LLC / Herbalife International Inc, | | | | | | |
| | 4.8750%, 6/1/29 (144A) | | 5,836,000 | | | 5,879,770 | |
| | Horizon Pharma USA Inc, 5.5000%, 8/1/27 (144A) | | 4,288,000 | | | 4,550,640 | |
| | Jazz Securities DAC, 4.3750%, 1/15/29 (144A) | | 1,925,000 | | | 1,995,840 | |
| | JBS USA LUX SA / JBS USA Finance Inc, 6.7500%, 2/15/28 (144A) | | 5,651,000 | | | 6,209,036 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 6.5000%, 4/15/29 (144A) | | 5,584,000 | | | 6,275,076 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 5.5000%, 1/15/30 (144A) | | 5,216,000 | | | 5,833,470 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 3.7500%, 12/1/31 (144A) | | 1,561,000 | | | 1,597,293 | |
| | Kraft Heinz Foods Co, 4.3750%, 6/1/46 | | 1,408,000 | | | 1,595,544 | |
| | Kraft Heinz Foods Co, 4.8750%, 10/1/49 | | 1,218,000 | | | 1,478,593 | |
| | MPH Acquisition Holdings LLC, 5.7500%, 11/1/28 (144A)# | | 5,746,000 | | | 5,774,213 | |
| | NBM US Holdings Inc, 6.6250%, 8/6/29 (144A)# | | 3,031,000 | | | 3,405,328 | |
| | Organon Finance 1 LLC, 4.1250%, 4/30/28 (144A) | | 5,084,000 | | | 5,184,663 | |
| | Organon Finance 1 LLC, 5.1250%, 4/30/31 (144A) | | 2,760,000 | | | 2,843,352 | |
| | Ortho-Clinical Diagnostics Inc / Ortho-Clinical Diagnostics SA, | | | | | | |
| | 7.3750%, 6/1/25 (144A) | | 2,514,000 | | | 2,699,408 | |
| | Prime Healthcare Services Inc, 7.2500%, 11/1/25 (144A) | | 1,735,000 | | | 1,878,276 | |
| | Providence Service Corp, 5.8750%, 11/15/25 (144A) | | 3,232,000 | | | 3,458,240 | |
| | Surgery Center Holdings Inc, 6.7500%, 7/1/25 (144A) | | 7,804,000 | | | 7,960,080 | |
| | Syneos Health Inc, 3.6250%, 1/15/29 (144A) | | 5,882,000 | | | 5,823,180 | |
| | Tenet Healthcare Corp, 4.8750%, 1/1/26 (144A) | | 4,811,000 | | | 4,989,969 | |
| | Tenet Healthcare Corp, 6.1250%, 10/1/28 (144A) | | 3,891,000 | | | 4,146,405 | |
| | Tenet Healthcare Corp, 4.2500%, 6/1/29 (144A) | | 4,834,000 | | | 4,894,425 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson High-Yield Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Consumer Non-Cyclical– (continued) | | | |
| | Teva Pharmaceutical Finance Co LLC, 6.1500%, 2/1/36 | | $2,061,000 | | | $2,267,100 | |
| | Teva Pharmaceutical Finance Netherlands III BV, 3.1500%, 10/1/26 | | 7,851,000 | | | 7,468,264 | |
| | | 172,058,206 | |
Electric – 1.6% | | | |
| | NRG Energy Inc, 3.6250%, 2/15/31 (144A) | | 9,977,000 | | | 9,804,398 | |
| | PG&E Corp, 5.2500%, 7/1/30 | | 1,627,000 | | | 1,642,457 | |
| | TerraForm Power Operating LLC, 4.7500%, 1/15/30 (144A) | | 5,648,000 | | | 5,784,512 | |
| | Vistra Operations Co LLC, 4.3750%, 5/1/29 (144A) | | 2,309,000 | | | 2,320,545 | |
| | | 19,551,912 | |
Energy – 11.4% | | | |
| | Antero Resources Corp, 7.6250%, 2/1/29 (144A) | | 2,654,000 | | | 2,945,940 | |
| | Antero Resources Corp, 5.3750%, 3/1/30 (144A) | | 2,072,000 | | | 2,114,745 | |
| | Apache Corp, 4.2500%, 1/15/30 | | 5,720,000 | | | 6,034,600 | |
| | Centennial Resource Production LLC, 6.8750%, 4/1/27 (144A)# | | 2,940,000 | | | 3,006,473 | |
| | Cheniere Energy Inc, 4.6250%, 10/15/28 (144A) | | 4,393,000 | | | 4,634,615 | |
| | Continental Resources Inc, 5.7500%, 1/15/31 (144A) | | 991,000 | | | 1,186,723 | |
| | DT Midstream Inc, 4.1250%, 6/15/29 (144A) | | 5,772,000 | | | 5,860,485 | |
| | DT Midstream Inc, 4.3750%, 6/15/31 (144A) | | 3,493,000 | | | 3,569,112 | |
| | Endeavor Energy Resources LP / EER Finance Inc, 6.6250%, 7/15/25 (144A) | | 3,305,000 | | | 3,536,350 | |
| | EnLink Midstream LLC, 5.6250%, 1/15/28 (144A) | | 3,008,000 | | | 3,177,621 | |
| | EnLink Midstream LLC, 5.3750%, 6/1/29 | | 3,667,000 | | | 3,826,955 | |
| | EnLink Midstream Partners LP, 4.1500%, 6/1/25 | | 7,196,000 | | | 7,536,659 | |
| | EQT Corp, 5.0000%, 1/15/29 | | 2,664,000 | | | 2,970,280 | |
| | EQT Corp, 3.6250%, 5/15/31 (144A) | | 2,323,000 | | | 2,421,728 | |
| | Great Western Petroleum LLC / Great Western Finance Corp, | | | | | | |
| | 12.0000%, 9/1/25 (144A) | | 4,759,000 | | | 4,735,205 | |
| | Hess Midstream Operations LP, 5.6250%, 2/15/26 (144A) | | 5,283,000 | | | 5,510,169 | |
| | Hess Midstream Operations LP, 5.1250%, 6/15/28 (144A) | | 3,957,000 | | | 4,149,904 | |
| | Magnolia Oil & Gas Operating LLC / Magnolia Oil & Gas Finance Corp, | | | | | | |
| | 6.0000%, 8/1/26 (144A) | | 5,565,000 | | | 5,731,950 | |
| | Newfield Exploration Co, 5.3750%, 1/1/26 | | 1,028,000 | | | 1,158,500 | |
| | NGL Energy Partners LP / NGL Energy Finance Corp, 7.5000%, 2/1/26 (144A) | | 5,677,000 | | | 5,960,850 | |
| | NuStar Logistics LP, 5.7500%, 10/1/25 | | 2,668,000 | | | 2,901,450 | |
| | Occidental Petroleum Corp, 3.2000%, 8/15/26 | | 2,619,000 | | | 2,638,643 | |
| | Occidental Petroleum Corp, 6.3750%, 9/1/28 | | 3,109,000 | | | 3,629,757 | |
| | Occidental Petroleum Corp, 3.5000%, 8/15/29 | | 6,242,000 | | | 6,264,471 | |
| | Occidental Petroleum Corp, 6.6250%, 9/1/30 | | 6,639,000 | | | 7,966,800 | |
| | Occidental Petroleum Corp, 6.1250%, 1/1/31 | | 1,791,000 | | | 2,107,165 | |
| | Range Resources Corp, 4.8750%, 5/15/25# | | 1,220,000 | | | 1,262,700 | |
| | Renewable Energy Group Inc, 5.8750%, 6/1/28 (144A) | | 3,490,000 | | | 3,660,137 | |
| | Sunoco LP / Sunoco Finance Corp, 4.5000%, 5/15/29 (144A) | | 2,767,000 | | | 2,815,423 | |
| | Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp, | | | | | | |
| | 5.5000%, 1/15/28 (144A) | | 6,557,000 | | | 6,671,747 | |
| | Viper Energy Partners LP, 5.3750%, 11/1/27 (144A) | | 5,282,000 | | | 5,502,312 | |
| | Western Midstream Operating LP, 5.3000%, 2/1/30Ç | | 7,631,000 | | | 8,546,758 | |
| | Western Midstream Operating LP, 5.4500%, 4/1/44 | | 1,319,000 | | | 1,421,223 | |
| | | 135,457,450 | |
Finance Companies – 1.6% | | | |
| | Fortress Transportation and Infrastructure Investors LLC, | | | | | | |
| | 9.7500%, 8/1/27 (144A) | | 3,164,000 | | | 3,658,375 | |
| | OneMain Finance Corp, 6.6250%, 1/15/28 | | 962,000 | | | 1,102,798 | |
| | Quicken Loans LLC, 3.8750%, 3/1/31 (144A) | | 4,155,000 | | | 4,186,121 | |
| | Springleaf Finance Corp, 8.8750%, 6/1/25 | | 3,936,000 | | | 4,363,804 | |
| | Springleaf Finance Corp, 5.3750%, 11/15/29 | | 5,769,000 | | | 6,275,172 | |
| | | 19,586,270 | |
Industrial – 0.8% | | | |
| | AT Securities BV, USD SWAP SEMI 30/360 5YR + 3.5460%, 5.2500%‡,µ | | 4,000,000 | | | 4,177,600 | |
| | Tutor Perini Corp, 6.8750%, 5/1/25 (144A)# | | 5,765,000 | | | 5,930,744 | |
| | | 10,108,344 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson High-Yield Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Information Technology Services – 0.3% | | | |
| | KBR Inc, 4.7500%, 9/30/28 (144A) | | $3,636,000 | | | $3,636,000 | |
Insurance – 1.3% | | | |
| | MGIC Investment Corp, 5.2500%, 8/15/28 | | 6,748,000 | | | 7,152,880 | |
| | Molina Healthcare Inc, 4.3750%, 6/15/28 (144A) | | 8,321,000 | | | 8,674,642 | |
| | | 15,827,522 | |
Real Estate Investment Trusts (REITs) – 1.0% | | | |
| | CTR Partnership LP / CareTrust Capital Corp, 3.8750%, 6/30/28 (144A) | | 2,557,000 | | | 2,611,004 | |
| | Global Net Lease Inc / Global Net Lease Operating Partnership LP, | | | | | | |
| | 3.7500%, 12/15/27 (144A) | | 3,787,000 | | | 3,748,168 | |
| | MPT Operating Partnership LP / MPT Finance Corp, 3.5000%, 3/15/31 | | 6,036,000 | | | 6,096,300 | |
| | | 12,455,472 | |
Real Estate Management & Development – 0.2% | | | |
| | Howard Hughes Corp, 4.1250%, 2/1/29 (144A) | | 914,000 | | | 914,018 | |
| | Howard Hughes Corp, 4.3750%, 2/1/31 (144A) | | 908,000 | | | 904,713 | |
| | | 1,818,731 | |
Technology – 5.1% | | | |
| | Austin BidCo Inc, 7.1250%, 12/15/28 (144A) | | 2,974,000 | | | 3,047,428 | |
| | Corelogic Inc, 4.5000%, 5/1/28 (144A) | | 8,908,000 | | | 8,830,055 | |
| | Endure Digital Inc, 6.0000%, 2/15/29 (144A) | | 2,990,000 | | | 2,960,100 | |
| | Entegris Inc, 4.3750%, 4/15/28 (144A) | | 3,272,000 | | | 3,415,150 | |
| | Entegris Inc, 3.6250%, 5/1/29 (144A) | | 2,180,000 | | | 2,207,250 | |
| | Everi Holdings Inc, 5.0000%, 7/15/29 | | 844,000 | | | 844,000 | |
| | ION Trading Technologies Sarl, 5.7500%, 5/15/28 (144A) | | 4,727,000 | | | 4,907,737 | |
| | Iron Mountain Inc, 5.2500%, 7/15/30 (144A) | | 4,715,000 | | | 4,991,205 | |
| | MSCI Inc, 3.8750%, 2/15/31 (144A) | | 1,446,000 | | | 1,500,601 | |
| | MSCI Inc, 3.6250%, 11/1/31 (144A) | | 4,375,000 | | | 4,487,437 | |
| | NCR CORP, 5.1250%, 4/15/29 (144A) | | 3,414,000 | | | 3,520,687 | |
| | Rackspace Technology Inc, 3.5000%, 2/15/28 (144A) | | 1,972,000 | | | 1,907,910 | |
| | Rocket Software Inc, 6.5000%, 2/15/29 (144A) | | 3,488,000 | | | 3,461,073 | |
| | Seagate HDD Cayman, 4.1250%, 1/15/31 (144A) | | 1,935,000 | | | 1,973,700 | |
| | Seagate HDD Cayman, 3.3750%, 7/15/31 (144A) | | 3,041,000 | | | 2,938,518 | |
| | Sensata Technologies BV, 4.0000%, 4/15/29 (144A) | | 3,271,000 | | | 3,320,337 | |
| | Square Inc, 3.5000%, 6/1/31 (144A) | | 5,847,000 | | | 5,898,161 | |
| | | 60,211,349 | |
Transportation – 2.3% | | | |
| | Cargo Aircraft Management Inc, 4.7500%, 2/1/28 (144A) | | 10,244,000 | | | 10,447,139 | |
| | Delta Air Lines Inc, 7.3750%, 1/15/26 | | 2,482,000 | | | 2,912,215 | |
| | Delta Air Lines Inc, 3.7500%, 10/28/29 | | 1,015,000 | | | 1,013,367 | |
| | United Airlines Holdings Inc, 4.8750%, 1/15/25# | | 7,579,000 | | | 7,863,212 | |
| | Watco Cos LLC / Watco Finance Corp, 6.5000%, 6/15/27 (144A) | | 5,383,000 | | | 5,759,810 | |
| | | 27,995,743 | |
Total Corporate Bonds (cost $987,598,104) | | 1,037,732,846 | |
Common Stocks– 2.2% | | | |
Building Products – 0.1% | | | |
| | Builders FirstSource Inc* | | 39,418 | | | 1,681,572 | |
Consumer Finance – 0.4% | | | |
| | OneMain Holdings Inc | | 74,182 | | | 4,444,244 | |
Health Care Providers & Services – 0.3% | | | |
| | ModivCare Inc* | | 20,063 | | | 3,412,114 | |
Hotels, Restaurants & Leisure – 0.4% | | | |
| | Bally's Corp* | | 92,304 | | | 4,994,569 | |
Metals & Mining – 0.2% | | | |
| | Freeport-McMoRan Inc | | 48,488 | | | 1,799,390 | |
Professional Services – 0.1% | | | |
| | Dun & Bradstreet Holdings Inc* | | 52,324 | | | 1,118,164 | |
Semiconductor & Semiconductor Equipment – 0.7% | | | |
| | Advanced Micro Devices Inc* | | 26,463 | | | 2,485,670 | |
| | Entegris Inc | | 24,397 | | | 3,000,099 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson High-Yield Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Semiconductor & Semiconductor Equipment– (continued) | | | |
| | Qorvo Inc* | | 17,232 | | | $3,371,441 | |
| | | 8,857,210 | |
Total Common Stocks (cost $25,057,462) | | 26,307,263 | |
Preferred Stocks– 2.3% | | | |
Consumer Cyclical – 0.2% | | | |
| | Quiksilver Inc¢ | | 3,097,721 | | | 2,633,063 | |
Health Care Equipment & Supplies – 1.2% | | | |
| | Becton Dickinson and Co, Convertible, 6.0000%, 6/1/23# | | 41,750 | | | 2,234,043 | |
| | Boston Scientific Corp, Convertible, 5.5000%, 6/1/23 | | 100,856 | | | 11,638,782 | |
| | | 13,872,825 | |
Professional Services – 0.7% | | | |
| | Clarivate PLC, Convertible, 5.2500%, 6/1/24 | | 76,800 | | | 8,002,560 | |
Semiconductor & Semiconductor Equipment – 0.2% | | | |
| | Broadcom Inc, 8.0000%, 9/30/22 | | 1,753 | | | 2,648,783 | |
Total Preferred Stocks (cost $25,663,233) | | 27,157,231 | |
Investment Companies– 1.9% | | | |
Money Markets – 1.9% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº,£((cost $22,896,121) | | 22,893,940 | | | 22,896,230 | |
Investments Purchased with Cash Collateral from Securities Lending– 1.9% | | | |
Investment Companies – 1.5% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 17,503,656 | | | 17,503,656 | |
Time Deposits – 0.4% | | | |
| | Royal Bank of Canada, 0.0500%, 7/1/21 | | $4,560,671 | | | 4,560,671 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $22,064,327) | | 22,064,327 | |
Total Investments (total cost $1,147,000,471) – 100.9% | | 1,201,036,536 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.9)% | | (10,562,436) | |
Net Assets – 100% | | $1,190,474,100 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $1,058,472,986 | | 88.1 | % |
Luxembourg | | 35,620,247 | | 2.9 | |
United Kingdom | | 33,589,097 | | 2.8 | |
Germany | | 11,605,711 | | 1.0 | |
France | | 11,062,944 | | 0.9 | |
Peru | | 10,456,604 | | 0.9 | |
Israel | | 9,735,364 | | 0.8 | |
Canada | | 9,367,335 | | 0.8 | |
Netherlands | | 8,345,506 | | 0.7 | |
Macao | | 4,877,857 | | 0.4 | |
Switzerland | | 4,497,557 | | 0.4 | |
Brazil | | 3,405,328 | | 0.3 | |
| | | | | | |
| | | | | | |
Total | | $1,201,036,536 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson High-Yield Fund
Schedule of Investments
June 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 6/30/21 |
Investment Companies - 1.9% |
Money Markets - 1.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | $ | 37,900 | $ | (722) | $ | (1,008) | $ | 22,896,230 |
Investments Purchased with Cash Collateral from Securities Lending - 1.5% |
Investment Companies - 1.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 163,209∆ | | - | | - | | 17,503,656 |
Total Affiliated Investments - 3.4% | $ | 201,109 | $ | (722) | $ | (1,008) | $ | 40,399,886 |
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 1.9% |
Money Markets - 1.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | | 30,062,164 | | 590,658,701 | | (597,822,905) | | 22,896,230 |
Investments Purchased with Cash Collateral from Securities Lending - 1.5% |
Investment Companies - 1.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 10,285,947 | | 99,751,786 | | (92,534,077) | | 17,503,656 |
| | | | | | | |
Schedule of Forward Foreign Currency Exchange Contracts | | | | | | |
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Bank of America, National Association: | | | | | | | | |
Euro | 9/2/21 | (5,000) | $ | 6,071 | | 135 | | |
Citibank, National Association: | | | | | | | | |
Euro | 9/2/21 | (1,903,000) | | 2,310,303 | | 51,162 | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
Euro | 9/2/21 | (4,700) | | 5,705 | | 126 | | |
Total | | | | | $ | 51,423 | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson High-Yield Fund
Schedule of Investments
June 30, 2021
Schedule of Futures
| | | | | | | | | | | | | | |
Description | | Number of Contracts | | Expiration Date | | Value and Notional Amount | | Unrealized Appreciation/ (Depreciation) | | Variation Margin Asset/(Liability) | | |
Futures Purchased: | | | | | | | | | | | | |
2 Year US Treasury Note | | 257 | | 10/5/21 | $ | 56,622,320 | $ | (99,273) | $ | 6,023 | |
Futures Sold: | | | | | | | | | | | | |
5 Year US Treasury Note | | 102 | | 10/5/21 | | (12,589,828) | | 21,516 | | (6,375) | |
Ultra 10-Year Treasury Note | | 241 | | 9/30/21 | | (35,475,953) | | (634,635) | | (116,734) | |
Total - Futures Sold | | | | | | | | (613,119) | | (123,109) | | |
Total | | | | | | | $ | (712,392) | $ | (117,086) | | |
| | | | | | | | | | |
Schedule of Centrally Cleared Credit Default Swaps - Buy Protection |
Reference Asset | Maturity Date | Notional Amount | | | Premiums Paid/(Received) | | Unrealized Appreciation/ (Depreciation) | | Variation Margin Asset/(Liability) |
CDX.NA.HY.S36, Fixed Rate of 5.00%, Paid Quarterly | 6/20/26 | (23,700,000) | USD | $ | (2,282,367) | $ | (159,375) | $ | 5,141 |
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of June 30, 2021.
| | | | | | | | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of June 30, 2021 |
| | | | | | | | | | | |
| | | | | Credit
Contracts | | Currency
Contracts | | Interest Rate
Contracts | | Total |
Asset Derivatives: | | | | | | | | | |
Forward foreign currency exchange contracts | | | $ - | | $ 51,423 | | $ - | | $ 51,423 |
Variation margin receivable on futures contracts | | | - | | - | | 6,023 | | 6,023 |
Variation margin receivable on swaps | | | 5,141 | | - | | - | | 5,141 |
| | | | | | | | | | |
Total Asset Derivatives | | | $ 5,141 | | $ 51,423 | | $ 6,023 | | $ 62,587 |
Liability Derivatives: | | | | | | | | | |
Variation margin payable on futures contracts | | | $ - | | $ - | | $ 123,109 | | $123,109 |
| | | | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson High-Yield Fund
Schedule of Investments
June 30, 2021
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended June 30, 2021.
| | | | | | | | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended June 30, 2021 |
| | | | | | | | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Credit
Contracts | | Currency
Contracts | | Interest Rate
Contracts | | Total |
Futures contracts | | $ - | | $ - | | $ (129,812) | | $ (129,812) |
Forward foreign currency exchange contracts | | - | | (61,675) | | - | | (61,675) |
Swap contracts | | 1,435,804 | | - | | - | | 1,435,804 |
| | | | | | | | | | | |
Total | | $1,435,804 | | $(61,675) | | $ (129,812) | | $1,244,317 |
| | | | | | | | | | | |
| | | | | | | | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Credit
Contracts | | Currency
Contracts | | Interest Rate
Contracts | | Total |
Futures contracts | | $ - | | $ - | | $ (778,221) | | $ (778,221) |
Forward foreign currency exchange contracts | | - | | 51,423 | | - | | 51,423 |
Swap contracts | | (159,375) | | - | | - | | (159,375) |
| | | | | | | | | | | |
Total | | $ (159,375) | | $ 51,423 | | $ (778,221) | | $ (886,173) |
Please see the "Net Realized Gain/(Loss) on Investments" and “Change in Unrealized Net Appreciation/Depreciation” sections of the Fund’s Statement of Operations.
| | |
Average Ending Monthly Market Value of Derivative Instruments During the Year Ended June 30, 2021 |
| |
| Market Value(a) |
Credit default swaps, sell protection | $ 465,459 |
Credit default swaps, buy protection | (506,967) |
Forward foreign currency exchange contracts, purchased | 3,652 |
Forward foreign currency exchange contracts, sold | 697,685 |
Futures contracts, purchased | 30,388,515 |
Futures contracts, sold | 3,697,368 |
| | |
(a) Forward foreign currency exchange contracts are reported as the average ending monthly currency amount purchased or sold. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson High-Yield Fund
Notes to Schedule of Investments and Other Information
| | |
Bloomberg Barclays U.S. Corporate High-Yield Bond Index | Bloomberg Barclays U.S. Corporate High Yield Bond Index measures the US dollar-denominated, high yield, fixed-rate corporate bond market. |
| | |
ICE | Intercontinental Exchange |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
ULC | Unlimited Liability Company |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the year ended June 30, 2021 is $839,300,880, which represents 70.5% of net assets. |
| | |
* | Non-income producing security. |
| | |
ƒ | All or a portion of this position is not funded, or has been purchased on a delayed delivery or when-issued basis. If applicable, interest rates will be determined and interest will begin to accrue at a future date. See Notes to Financial Statements. |
| | |
‡ | Variable or floating rate security. Rate shown is the current rate as of June 30, 2021. Certain variable rate securities are not based on a published reference rate and spread; they are determined by the issuer or agent and current market conditions. Reference rate is as of reset date and may vary by security, which may not indicate a reference rate and/or spread in their description. |
| | |
ºº | Rate shown is the 7-day yield as of June 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at June 30, 2021. |
| | |
µ | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. The date indicated, if any, represents the next call date. |
| | |
Ç | Step bond. The coupon rate will increase or decrease periodically based upon a predetermined schedule. The rate shown reflects the current rate. |
| | |
Ø | Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended June 30, 2021 is $2,959,379, which represents 0.2% of net assets. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Henderson High-Yield Fund
Notes to Schedule of Investments and Other Information
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Asset-Backed/Commercial Mortgage-Backed Securities | $ | - | $ | 7,612,940 | $ | - |
Bank Loans and Mezzanine Loans | | - | | 56,939,383 | | 326,316 |
Corporate Bonds | | - | | 1,037,732,846 | | - |
Common Stocks | | 26,307,263 | | - | | - |
Preferred Stocks | | - | | 24,524,168 | | 2,633,063 |
Investment Companies | | - | | 22,896,230 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 22,064,327 | | - |
Total Investments in Securities | $ | 26,307,263 | $ | 1,171,769,894 | $ | 2,959,379 |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 51,423 | | - |
Variation Margin Receivable on Futures Contracts | | 6,023 | | - | | - |
Variation Margin Receivable on Swaps | | - | | 5,141 | | - |
Total Assets | $ | 26,313,286 | $ | 1,171,826,458 | $ | 2,959,379 |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Variation Margin Payable on Futures Contracts | $ | 123,109 | $ | - | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Futures, certain written options on futures, and centrally cleared swap contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Written options, written swaptions, and other swap contracts are reported at their market value at measurement date. |
Janus Henderson High-Yield Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $1,106,600,694)(1) | | $ | 1,160,636,650 | |
| Affiliated investments, at value (cost $40,399,777) | | | 40,399,886 | |
| Cash | | | 1,094,841 | |
| Deposits with brokers for centrally cleared derivatives | | | 1,151,801 | |
| Deposits with brokers for futures | | | 1,170,000 | |
| Forward foreign currency exchange contracts | | | 51,423 | |
| Receivable for variation margin on futures contracts | | | 6,023 | |
| | Receivable for variation margin on swaps | | | 5,141 | |
| Non-interested Trustees' deferred compensation | | | 28,904 | |
| Receivables: | | | | |
| | Investments sold | | | 20,119,238 | |
| | Interest | | | 15,800,435 | |
| | Fund shares sold | | | 11,355,786 | |
| | Dividends from affiliates | | | 1,552 | |
| Other assets | | | 28,590 | |
Total Assets | | | 1,251,850,270 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 22,064,327 | |
| Payable for variation margin on futures contracts | | | 123,109 | |
| Payables: | | | — | |
| | Investments purchased | | | 25,775,862 | |
| | Fund shares repurchased | | | 12,084,189 | |
| | Advisory fees | | | 554,033 | |
| | Dividends | | | 330,864 | |
| | Transfer agent fees and expenses | | | 161,127 | |
| | Professional fees | | | 60,867 | |
| | Non-interested Trustees' deferred compensation fees | | | 28,904 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 17,560 | |
| | Non-interested Trustees' fees and expenses | | | 4,506 | |
| | Affiliated fund administration fees payable | | | 2,428 | |
| | Custodian fees | | | 1,425 | |
| | Accrued expenses and other payables | | | 166,969 | |
Total Liabilities | | | 61,376,170 | |
Net Assets | | $ | 1,190,474,100 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson High-Yield Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,301,857,177 | |
| Total distributable earnings (loss) | | | (111,383,077) | |
Total Net Assets | | $ | 1,190,474,100 | |
Net Assets - Class A Shares | | $ | 38,432,164 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,450,043 | |
Net Asset Value Per Share(2) | | $ | 8.64 | |
Maximum Offering Price Per Share(3) | | $ | 9.07 | |
Net Assets - Class C Shares | | $ | 7,518,728 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 870,739 | |
Net Asset Value Per Share(2) | | $ | 8.63 | |
Net Assets - Class D Shares | | $ | 347,854,735 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 40,271,492 | |
Net Asset Value Per Share | | $ | 8.64 | |
Net Assets - Class I Shares | | $ | 264,362,590 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 30,589,007 | |
Net Asset Value Per Share | | $ | 8.64 | |
Net Assets - Class N Shares | | $ | 149,966,866 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 17,363,600 | |
Net Asset Value Per Share | | $ | 8.64 | |
Net Assets - Class R Shares | | $ | 7,787,939 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 902,450 | |
Net Asset Value Per Share | | $ | 8.63 | |
Net Assets - Class S Shares | | $ | 2,236,842 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 258,527 | |
Net Asset Value Per Share | | $ | 8.65 | |
Net Assets - Class T Shares | | $ | 372,314,236 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 43,097,239 | |
Net Asset Value Per Share | | $ | 8.64 | |
| |
(1) Includes $19,387,695 of securities on loan. See Note 3 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/95.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
20 | JUNE 30, 2021 |
Janus Henderson High-Yield Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Interest | $ | 63,501,233 | |
| Dividends | | 1,061,470 | |
| Affiliated securities lending income, net | | 163,209 | |
| Dividends from affiliates | | 37,900 | |
| Unaffiliated securities lending income, net | | 2,214 | |
| Other income | | 250,414 | |
Total Investment Income | | 65,016,440 | |
Expenses: | | | |
| Advisory fees | | 6,597,719 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 91,445 | |
| | Class C Shares | | 92,879 | |
| | Class R Shares | | 19,331 | |
| | Class S Shares | | 5,145 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 378,132 | |
| | Class R Shares | | 9,706 | |
| | Class S Shares | | 5,145 | |
| | Class T Shares | | 909,850 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 30,989 | |
| | Class C Shares | | 7,018 | |
| | Class I Shares | | 233,969 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 2,282 | |
| | Class C Shares | | 494 | |
| | Class D Shares | | 44,486 | |
| | Class I Shares | | 11,080 | |
| | Class N Shares | | 4,046 | |
| | Class R Shares | | 116 | |
| | Class S Shares | | 62 | |
| | Class T Shares | | 3,542 | |
| Registration fees | | 165,653 | |
| Shareholder reports expense | | 104,588 | |
| Professional fees | | 62,798 | |
| Affiliated fund administration fees | | 32,075 | |
| Non-interested Trustees’ fees and expenses | | 18,638 | |
| Custodian fees | | 15,402 | |
| Other expenses | | 137,105 | |
Total Expenses | | 8,983,695 | |
Less: Excess Expense Reimbursement and Waivers | | (61,004) | |
Net Expenses | | 8,922,691 | |
Net Investment Income/(Loss) | | 56,093,749 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson High-Yield Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 54,646,302 | |
| Investments in affiliates | | (722) | |
| Forward foreign currency exchange contracts | | (61,675) | |
| Futures contracts | | (129,812) | |
| Swap contracts | | 1,435,804 | |
Total Net Realized Gain/(Loss) on Investments | | 55,889,897 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 65,624,447 | |
| Investments in affiliates | | (1,008) | |
| Forward foreign currency exchange contracts | | 51,423 | |
| Futures contracts | | (778,221) | |
| Swap contracts | | (159,375) | |
Total Change in Unrealized Net Appreciation/Depreciation | | 64,737,266 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 176,720,912 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
22 | JUNE 30, 2021 |
Janus Henderson High-Yield Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 56,093,749 | | $ | 63,804,812 | |
| Net realized gain/(loss) on investments | | 55,889,897 | | | (47,237,590) | |
| Change in unrealized net appreciation/depreciation | | 64,737,266 | | | (37,877,478) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 176,720,912 | | | (21,310,256) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (1,766,441) | | | (1,790,411) | |
| | Class C Shares | | (396,252) | | | (655,795) | |
| | Class D Shares | | (16,665,439) | | | (17,922,925) | |
| | Class I Shares | | (13,201,824) | | | (14,826,429) | |
| | Class N Shares | | (7,232,843) | | | (7,114,604) | |
| | Class R Shares | | (164,621) | | | (71,475) | |
| | Class S Shares | | (95,758) | | | (82,925) | |
| | Class T Shares | | (18,016,828) | | | (21,428,230) | |
Net Decrease from Dividends and Distributions to Shareholders | | (57,540,006) | | | (63,892,794) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 1,835,244 | | | 7,293,354 | |
| | Class C Shares | | (6,040,340) | | | (9,556,728) | |
| | Class D Shares | | 4,491,659 | | | (13,309,649) | |
| | Class I Shares | | (20,733,811) | | | (17,217,091) | |
| | Class N Shares | | 5,502,453 | | | 15,552,374 | |
| | Class R Shares | | 5,989,941 | | | 23,075 | |
| | Class S Shares | | 167,569 | | | 510,116 | |
| | Class T Shares | | (15,403,144) | | | (62,546,566) | |
Net Increase/(Decrease) from Capital Share Transactions | | (24,190,429) | | | (79,251,115) | |
Net Increase/(Decrease) in Net Assets | | 94,990,477 | | | (164,454,165) | |
Net Assets: | | | | | | |
| Beginning of period | | 1,095,483,623 | | | 1,259,937,788 | |
| End of period | $ | 1,190,474,100 | | $ | 1,095,483,623 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson High-Yield Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.77 | | | $8.34 | | | $8.18 | | | $8.50 | | | $8.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.39 | | | 0.41 | | | 0.43 | | | 0.46 | | | 0.50 | |
| | Net realized and unrealized gain/(loss) | | 0.88 | | | (0.57) | | | 0.16 | | | (0.32) | | | 0.33 | |
| Total from Investment Operations | | 1.27 | | | (0.16) | | | 0.59 | | | 0.14 | | | 0.83 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.40) | | | (0.41) | | | (0.43) | | | (0.46) | | | (0.50) | |
| Total Dividends and Distributions | | (0.40) | | | (0.41) | | | (0.43) | | | (0.46) | | | (0.50) | |
| Net Asset Value, End of Period | | $8.64 | | | $7.77 | | | $8.34 | | | $8.18 | | | $8.50 | |
| Total Return* | | 16.69% | | | (1.95)% | | | 7.48% | | | 1.58% | | | 10.32% | |
| Net Assets, End of Period (in thousands) | | $38,432 | | | $32,937 | | | $28,510 | | | $32,487 | | | $39,747 | |
| Average Net Assets for the Period (in thousands) | | $36,570 | | | $35,108 | | | $27,131 | | | $35,915 | | | $59,850 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.97% | | | 0.98% | | | 1.04% | | | 1.03% | | | 1.00% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.97% | | | 0.98% | | | 1.04% | | | 1.03% | | | 1.00% | |
| | Ratio of Net Investment Income/(Loss) | | 4.71% | | | 5.09% | | | 5.23% | | | 5.41% | | | 5.86% | |
| Portfolio Turnover Rate | | 120% | | | 146% | | | 110% | | | 114% | | | 102% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.77 | | | $8.34 | | | $8.18 | | | $8.50 | | | $8.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.34 | | | 0.36 | | | 0.37 | | | 0.40 | | | 0.44 | |
| | Net realized and unrealized gain/(loss) | | 0.86 | | | (0.57) | | | 0.17 | | | (0.32) | | | 0.33 | |
| Total from Investment Operations | | 1.20 | | | (0.21) | | | 0.54 | | | 0.08 | | | 0.77 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.34) | | | (0.36) | | | (0.38) | | | (0.40) | | | (0.44) | |
| Total Dividends and Distributions | | (0.34) | | | (0.36) | | | (0.38) | | | (0.40) | | | (0.44) | |
| Net Asset Value, End of Period | | $8.63 | | | $7.77 | | | $8.34 | | | $8.18 | | | $8.50 | |
| Total Return* | | 15.73% | | | (2.64)% | | | 6.78% | | | 0.92% | | | 9.57% | |
| Net Assets, End of Period (in thousands) | | $7,519 | | | $12,402 | | | $23,026 | | | $33,888 | | | $43,169 | |
| Average Net Assets for the Period (in thousands) | | $9,532 | | | $15,009 | | | $27,890 | | | $39,154 | | | $46,514 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.70% | | | 1.69% | | | 1.70% | | | 1.68% | | | 1.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.69% | | | 1.69% | | | 1.70% | | | 1.68% | | | 1.68% | |
| | Ratio of Net Investment Income/(Loss) | | 4.03% | | | 4.37% | | | 4.57% | | | 4.75% | | | 5.19% | |
| Portfolio Turnover Rate | | 120% | | | 146% | | | 110% | | | 114% | | | 102% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
24 | JUNE 30, 2021 |
Janus Henderson High-Yield Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.77 | | | $8.34 | | | $8.18 | | | $8.50 | | | $8.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.41 | | | 0.43 | | | 0.45 | | | 0.48 | | | 0.52 | |
| | Net realized and unrealized gain/(loss) | | 0.88 | | | (0.57) | | | 0.16 | | | (0.32) | | | 0.33 | |
| Total from Investment Operations | | 1.29 | | | (0.14) | | | 0.61 | | | 0.16 | | | 0.85 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.42) | | | (0.43) | | | (0.45) | | | (0.48) | | | (0.52) | |
| Total Dividends and Distributions | | (0.42) | | | (0.43) | | | (0.45) | | | (0.48) | | | (0.52) | |
| Net Asset Value, End of Period | | $8.64 | | | $7.77 | | | $8.34 | | | $8.18 | | | $8.50 | |
| Total Return* | | 16.93% | | | (1.73)% | | | 7.74% | | | 1.82% | | | 10.56% | |
| Net Assets, End of Period (in thousands) | | $347,855 | | | $309,023 | | | $348,041 | | | $354,349 | | | $376,111 | |
| Average Net Assets for the Period (in thousands) | | $330,438 | | | $337,185 | | | $339,785 | | | $370,556 | | | $359,572 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.77% | | | 0.80% | | | 0.79% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.77% | | | 0.80% | | | 0.79% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | 4.92% | | | 5.31% | | | 5.49% | | | 5.65% | | | 6.10% | |
| Portfolio Turnover Rate | | 120% | | | 146% | | | 110% | | | 114% | | | 102% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.77 | | | $8.34 | | | $8.19 | | | $8.50 | | | $8.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.42 | | | 0.44 | | | 0.45 | | | 0.48 | | | 0.53 | |
| | Net realized and unrealized gain/(loss) | | 0.88 | | | (0.57) | | | 0.16 | | | (0.31) | | | 0.32 | |
| Total from Investment Operations | | 1.30 | | | (0.13) | | | 0.61 | | | 0.17 | | | 0.85 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.43) | | | (0.44) | | | (0.46) | | | (0.48) | | | (0.52) | |
| Total Dividends and Distributions | | (0.43) | | | (0.44) | | | (0.46) | | | (0.48) | | | (0.52) | |
| Net Asset Value, End of Period | | $8.64 | | | $7.77 | | | $8.34 | | | $8.19 | | | $8.50 | |
| Total Return* | | 16.99% | | | (1.69)% | | | 7.68% | | | 2.01% | | | 10.67% | |
| Net Assets, End of Period (in thousands) | | $264,363 | | | $258,255 | | | $289,574 | | | $373,573 | | | $766,952 | |
| Average Net Assets for the Period (in thousands) | | $258,975 | | | $277,116 | | | $323,343 | | | $623,820 | | | $535,202 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.71% | | | 0.72% | | | 0.73% | | | 0.71% | | | 0.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.71% | | | 0.72% | | | 0.73% | | | 0.71% | | | 0.68% | |
| | Ratio of Net Investment Income/(Loss) | | 4.97% | | | 5.34% | | | 5.54% | | | 5.70% | | | 6.23% | |
| Portfolio Turnover Rate | | 120% | | | 146% | | | 110% | | | 114% | | | 102% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson High-Yield Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.77 | | | $8.34 | | | $8.18 | | | $8.50 | | | $8.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.42 | | | 0.44 | | | 0.46 | | | 0.47 | | | 0.53 | |
| | Net realized and unrealized gain/(loss) | | 0.88 | | | (0.57) | | | 0.16 | | | (0.30) | | | 0.33 | |
| Total from Investment Operations | | 1.30 | | | (0.13) | | | 0.62 | | | 0.17 | | | 0.86 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.43) | | | (0.44) | | | (0.46) | | | (0.49) | | | (0.53) | |
| Total Dividends and Distributions | | (0.43) | | | (0.44) | | | (0.46) | | | (0.49) | | | (0.53) | |
| Net Asset Value, End of Period | | $8.64 | | | $7.77 | | | $8.34 | | | $8.18 | | | $8.50 | |
| Total Return* | | 17.09% | | | (1.59)% | | | 7.90% | | | 1.98% | | | 10.73% | |
| Net Assets, End of Period (in thousands) | | $149,967 | | | $129,944 | | | $124,803 | | | $209,887 | | | $30,455 | |
| Average Net Assets for the Period (in thousands) | | $139,565 | | | $129,946 | | | $170,511 | | | $73,663 | | | $27,197 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.62% | | | 0.62% | | | 0.65% | | | 0.67% | | | 0.62% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.62% | | | 0.62% | | | 0.65% | | | 0.67% | | | 0.62% | |
| | Ratio of Net Investment Income/(Loss) | | 5.05% | | | 5.47% | | | 5.61% | | | 5.89% | | | 6.27% | |
| Portfolio Turnover Rate | | 120% | | | 146% | | | 110% | | | 114% | | | 102% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.76 | | | $8.33 | | | $8.18 | | | $8.49 | | | $8.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.35 | | | 0.38 | | | 0.39 | | | 0.42 | | | 0.46 | |
| | Net realized and unrealized gain/(loss) | | 0.89 | | | (0.57) | | | 0.15 | | | (0.31) | | | 0.32 | |
| Total from Investment Operations | | 1.24 | | | (0.19) | | | 0.54 | | | 0.11 | | | 0.78 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.37) | | | (0.38) | | | (0.39) | | | (0.42) | | | (0.46) | |
| Total Dividends and Distributions | | (0.37) | | | (0.38) | | | (0.39) | | | (0.42) | | | (0.46) | |
| Net Asset Value, End of Period | | $8.63 | | | $7.76 | | | $8.33 | | | $8.18 | | | $8.49 | |
| Total Return* | | 16.20% | | | (2.41)% | | | 6.89% | | | 1.28% | | | 9.77% | |
| Net Assets, End of Period (in thousands) | | $7,788 | | | $1,551 | | | $1,623 | | | $1,365 | | | $1,447 | |
| Average Net Assets for the Period (in thousands) | | $3,865 | | | $1,538 | | | $1,397 | | | $1,411 | | | $1,457 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.45% | | | 1.57% | | | 1.62% | | | 1.45% | | | 1.38% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.39% | | | 1.45% | | | 1.48% | | | 1.45% | | | 1.38% | |
| | Ratio of Net Investment Income/(Loss) | | 4.20% | | | 4.64% | | | 4.82% | | | 4.99% | | | 5.49% | |
| Portfolio Turnover Rate | | 120% | | | 146% | | | 110% | | | 114% | | | 102% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
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See Notes to Financial Statements. |
| |
26 | JUNE 30, 2021 |
Janus Henderson High-Yield Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.78 | | | $8.35 | | | $8.19 | | | $8.51 | | | $8.19 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.38 | | | 0.40 | | | 0.41 | | | 0.44 | | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | 0.88 | | | (0.57) | | | 0.17 | | | (0.32) | | | 0.32 | |
| Total from Investment Operations | | 1.26 | | | (0.17) | | | 0.58 | | | 0.12 | | | 0.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.39) | | | (0.40) | | | (0.42) | | | (0.44) | | | (0.49) | |
| Total Dividends and Distributions | | (0.39) | | | (0.40) | | | (0.42) | | | (0.44) | | | (0.49) | |
| Net Asset Value, End of Period | | $8.65 | | | $7.78 | | | $8.35 | | | $8.19 | | | $8.51 | |
| Total Return* | | 16.47% | | | (2.14)% | | | 7.29% | | | 1.44% | | | 10.05% | |
| Net Assets, End of Period (in thousands) | | $2,237 | | | $1,859 | | | $1,496 | | | $1,995 | | | $1,702 | |
| Average Net Assets for the Period (in thousands) | | $2,057 | | | $1,687 | | | $1,833 | | | $1,746 | | | $1,801 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.27% | | | 1.30% | | | 1.31% | | | 1.19% | | | 1.12% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.15% | | | 1.19% | | | 1.22% | | | 1.18% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | 4.53% | | | 4.90% | | | 5.07% | | | 5.26% | | | 5.76% | |
| Portfolio Turnover Rate | | 120% | | | 146% | | | 110% | | | 114% | | | 102% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.77 | | | $8.34 | | | $8.18 | | | $8.50 | | | $8.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.40 | | | 0.42 | | | 0.44 | | | 0.47 | | | 0.51 | |
| | Net realized and unrealized gain/(loss) | | 0.88 | | | (0.57) | | | 0.16 | | | (0.32) | | | 0.33 | |
| Total from Investment Operations | | 1.28 | | | (0.15) | | | 0.60 | | | 0.15 | | | 0.84 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.41) | | | (0.42) | | | (0.44) | | | (0.47) | | | (0.51) | |
| Total Dividends and Distributions | | (0.41) | | | (0.42) | | | (0.44) | | | (0.47) | | | (0.51) | |
| Net Asset Value, End of Period | | $8.64 | | | $7.77 | | | $8.34 | | | $8.18 | | | $8.50 | |
| Total Return* | | 16.82% | | | (1.83)% | | | 7.64% | | | 1.73% | | | 10.47% | |
| Net Assets, End of Period (in thousands) | | $372,314 | | | $349,513 | | | $442,866 | | | $515,406 | | | $821,650 | |
| Average Net Assets for the Period (in thousands) | | $364,038 | | | $411,154 | | | $460,568 | | | $703,671 | | | $1,017,073 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.87% | | | 0.87% | | | 0.89% | | | 0.88% | | | 0.87% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.85% | | | 0.86% | | | 0.89% | | | 0.88% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 4.82% | | | 5.21% | | | 5.39% | | | 5.55% | | | 6.00% | |
| Portfolio Turnover Rate | | 120% | | | 146% | | | 110% | | | 114% | | | 102% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
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Janus Investment Fund | 27 |
Janus Henderson High-Yield Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson High-Yield Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks to obtain high current income. Capital appreciation is a secondary investment objective when consistent with its primary investment objective. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson
Janus Henderson High-Yield Fund
Notes to Financial Statements
Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with US GAAP.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on
Janus Henderson High-Yield Fund
Notes to Financial Statements
an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
The Fund did not hold a significant amount of Level 3 securities as of June 30, 2021.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Janus Henderson High-Yield Fund
Notes to Financial Statements
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends are declared daily and distributed monthly for the Fund. Realized capital gains, if any, are declared and distributed in December. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the year ended June 30, 2021 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the
Janus Henderson High-Yield Fund
Notes to Financial Statements
securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the 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.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital's ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign
Janus Henderson High-Yield Fund
Notes to Financial Statements
currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE shall be used to value the forward currency contracts.
The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a forward currency contract is reported on the Statement of Operations (if applicable).
During the year, the Fund entered into forward currency contracts with the obligation to purchase foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
During the year, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts on commodities are valued at the settlement price on valuation date on the commodities exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract.
Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
During the year, the Fund purchased interest rate futures to increase exposure to interest rate risk.
During the year, the Fund sold interest rate futures to decrease exposure to interest rate risk.
There were no futures held at June 30, 2021.
Swaps
Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a day to more than one year to exchange one set of cash flows for another. The most significant factor in the performance of
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Notes to Financial Statements
swap agreements is the change in value of the specific index, security, or currency, or other factors that determine the amounts of payments due to and from the Fund. The use of swaps is a highly specialized activity which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. Swap transactions may in some instances involve the delivery of securities or other underlying assets by the Fund or its counterparty to collateralize obligations under the swap. If the other party to a swap that is not collateralized defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. Swap agreements entail the risk that a party will default on its payment obligations to the Fund. If the other party to a swap defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If the Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return.
Swap agreements also bear the risk that the Fund will not be able to meet its obligation to the counterparty. Swap agreements are typically privately negotiated and entered into in the OTC market. However, certain swap agreements are required to be cleared through a clearinghouse and traded on an exchange or swap execution facility. Swaps that are required to be cleared are required to post initial and variation margins in accordance with the exchange requirements. Regulations enacted require the Fund to centrally clear certain interest rate and credit default index swaps through a clearinghouse or central counterparty (“CCP”). To clear a swap with a CCP, the Fund will submit the swap to, and post collateral with, a futures clearing merchant (“FCM”) that is a clearinghouse member. Alternatively, the Fund may enter into a swap with a financial institution other than the FCM (the “Executing Dealer”) and arrange for the swap to be transferred to the FCM for clearing. The Fund may also enter into a swap with the FCM itself. The CCP, the FCM, and the Executing Dealer are all subject to regulatory oversight by the U.S. Commodity Futures Trading Commission (“CFTC”). A default or failure by a CCP or an FCM, or the failure of a swap to be transferred from an Executing Dealer to the FCM for clearing, may expose the Fund to losses, increase its costs, or prevent the Fund from entering or exiting swap positions, accessing collateral, or fully implementing its investment strategies. The regulatory requirement to clear certain swaps could, either temporarily or permanently, reduce the liquidity of cleared swaps or increase the costs of entering into those swaps.
Index swaps, interest rate swaps, inflation swaps and credit default swaps are valued using an approved vendor supplied price. Basket swaps are valued using a broker supplied price. Equity swaps that consist of a single underlying equity are valued either at the closing price, the latest bid price, or the last sale price on the primary market or exchange it trades. The market value of swap contracts are aggregated by positive and negative values and are disclosed separately as an asset or liability on the Fund’s Statement of Assets and Liabilities (if applicable). Realized gains and losses are reported on the Fund’s Statement of Operations (if applicable). The change in unrealized net appreciation or depreciation during the year is included in the Statement of Operations (if applicable).
The Fund’s maximum risk of loss from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund’s exposure to the counterparty.
The Fund may enter into various types of credit default swap agreements, including OTC credit default swap agreements, for investment purposes, to add leverage to its Fund, or to hedge against widening credit spreads on high-yield/high-risk bonds. Credit default swaps are a specific kind of counterparty agreement that allow 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. Credit default swaps could result in losses if the Fund does not correctly evaluate the creditworthiness of the company or companies on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject to illiquidity risk, counterparty risk, and credit risk. The Fund will generally incur a greater degree of risk when it sells a credit default swap than when it purchases a credit default swap. As a buyer of a credit default swap, the Fund may lose its investment and recover nothing should no credit event occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event were to occur, the value of any deliverable obligation received by the Fund, coupled with the upfront or periodic payments previously received, may be less than what it pays to the buyer, resulting in a loss of value to the Fund.
As a buyer of credit protection, the Fund is entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract in the event of a default or other credit event by a third party, such as a
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Notes to Financial Statements
U.S. or foreign issuer, on the debt obligation. In return, the Fund as buyer would pay to the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no credit event occurs, the Fund would have spent the stream of payments and potentially received no benefit from the contract.
If the Fund is the seller of credit protection against a particular security, the Fund would receive an up-front or periodic payment to compensate against potential credit events. As the seller in a credit default swap contract, the Fund would be required to pay the par value (the “notional value”) (or other agreed-upon value) of a referenced debt obligation to the counterparty in the event of a default by a third party, such as a U.S. or foreign corporate issuer, on the debt obligation. In return, the Fund would receive from the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, the Fund would keep the stream of payments and would have no payment obligations. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional value of the swap. The maximum potential amount of future payments (undiscounted) that the Fund as a seller could be required to make in a credit default transaction would be the notional amount of the agreement.
The Fund may invest in CDXs. A CDX is a swap on an index of credit default swaps. CDXs allow an investor to manage credit risk or take a position on a basket of credit entities (such as credit default swaps or commercial mortgage-backed securities) in a more efficient manner than transacting in a single-name CDS. If a credit event occurs in one of the underlying companies, the protection is paid out via the delivery of the defaulted bond by the buyer of protection in return for a payment of notional value of the defaulted bond by the seller of protection or it may be settled through a cash settlement between the two parties. The underlying company is then removed from the index. If the Fund holds a long position in a CDX, the Fund would indirectly bear its proportionate share of any expenses paid by a CDX. A Fund holding a long position in CDXs typically receives income from principal or interest paid on the underlying securities. By investing in CDXs, the Fund could be exposed to illiquidity risk, counterparty risk, and credit risk of the issuers of the underlying loan obligations and of the CDX markets. If there is a default by the CDX counterparty, the Fund will have contractual remedies pursuant to the agreements related to the transaction. CDXs also bear the risk that the Fund will not be able to meet its obligation to the counterparty.
During the year, the Fund sold protection via the credit default swap market in order to gain credit risk exposure to individual corporates, countries and/or credit indices where gaining this exposure via the cash bond market was less attractive.
During the year, the Fund purchased protection via the credit default swap market in order to reduce credit risk exposure to individual corporates, countries and/or credit indices where reducing this exposure via the cash bond market was less attractive.
3. Other Investments and Strategies
Additional Investment Risk
The Fund may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes, or adverse developments specific to the issuer.
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one
Janus Henderson High-Yield Fund
Notes to Financial Statements
region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Loans
The Fund may invest in various commercial loans, including bank loans, bridge loans, debtor-in-possession (“DIP”) loans, mezzanine loans, and other fixed and floating rate loans. These loans may be acquired through loan participations and assignments or on a when-issued basis. Commercial loans will comprise no more than 20% of the Fund’s total assets. Below are descriptions of the types of loans held by the Fund as of June 30, 2021.
· Bank Loans - Bank loans are obligations of companies or other entities entered into in connection with recapitalizations, acquisitions, and refinancings. The Fund’s 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.
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Notes to Financial Statements
· Floating Rate Loans – Floating rate loans are debt securities that have floating interest rates, that adjust periodically, and are tied to a benchmark lending rate, such as London Interbank Offered Rate (“LIBOR”). In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (‘‘borrowers’’) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. While the Fund generally expects to invest in fully funded term loans, certain of the loans in which the Fund may invest include revolving loans, bridge loans, and delayed draw term loans.
Purchasers of floating rate loans may pay and/or receive certain fees. The Fund may receive fees such as covenant waiver fees or prepayment penalty fees. The Fund may pay fees such as facility fees. Such fees may affect the Fund’s return.
· Mezzanine Loans - Mezzanine loans are secured by the stock of the company that owns the assets. Mezzanine loans are a hybrid of debt and equity financing that is typically used to fund the expansion of existing companies. A mezzanine loan is composed of debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. Mezzanine loans typically are the most subordinated debt obligation in an issuer’s capital structure.
Mortgage- and Asset-Backed Securities
Mortgage- and asset-backed securities represent interests in “pools” of commercial or residential mortgages or other assets, including consumer and commercial loans or receivables. The Fund may purchase fixed or variable rate commercial or residential mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. Ginnie Mae’s guarantees are backed as to the timely payment of principal and interest by the full faith and credit of the U.S. Government. Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. Since that time, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases and Treasury and Federal Reserve purchases of their mortgage-backed securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac.
The Fund may also purchase other mortgage- and asset-backed securities through single- and multi-seller conduits, collateralized debt obligations, structured investment vehicles, and other similar securities. Asset-backed securities may be backed by various consumer obligations, including automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying loans are not paid, the securities’ issuer could be forced to sell the assets and recognize losses on such assets, which could impact your return. Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Mortgage- and asset-backed securities are subject to both extension risk, where borrowers pay off their debt obligations more slowly in times of rising interest rates, and prepayment risk, where borrowers pay off their debt obligations sooner than expected in times of declining interest rates. These risks may reduce the Fund’s returns. In addition, investments in mortgage- and asset-backed securities, including those comprised of subprime mortgages, may be subject to a higher degree of credit risk, valuation risk, extension risk (if interest rates rise), and liquidity risk than various other types of fixed-income securities. Additionally, although mortgage-backed securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that guarantors or insurers will meet their obligations.
Janus Henderson High-Yield Fund
Notes to Financial Statements
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of June 30, 2021” table located in the Fund’s Schedule of Investments.
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Bank of America, National Association | $ | 135 | $ | — | $ | — | $ | 135 |
Citibank, National Association | | 51,162 | | — | | — | | 51,162 |
JPMorgan Chase Bank, National Association | | 19,387,821 | | — | | (19,387,695) | | 126 |
| | | | | | | | | |
Total | $ | 19,439,118 | $ | — | $ | (19,387,695) | $ | 51,423 |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
Janus Henderson High-Yield Fund
Notes to Financial Statements
Real Estate Investing
The Fund may invest 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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to primarily invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of June 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $19,387,695. Gross amounts of recognized liabilities for securities lending (collateral received) as of June 30, 2021 is $22,064,327, resulting in the net amount due to the counterparty of $2,676,632.
Janus Henderson High-Yield Fund
Notes to Financial Statements
When-Issued, Delayed Delivery and Forward Commitment Transactions
The Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis. When purchasing a security on a when-issued, delayed delivery, or forward commitment basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made. Because the Fund is not required to pay for the security until the delivery date, these risks are in addition to the risks associated with the Fund’s other investments. If the other party to a transaction fails to deliver the securities, the Fund could miss a favorable price or yield opportunity. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases are outstanding, the purchases may result in a form of leverage. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases (including TBA commitments) are outstanding, the purchases may result in a form of leverage.
When the Fund has sold a security on a when-issued, delayed delivery, or forward commitment basis, the Fund does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to pay for the securities, the Fund could suffer a loss. Additionally, when selling a security on a when-issued, delayed delivery, or forward commitment basis without owning the security, the Fund will incur a loss if the security’s price appreciates in value such that the security’s price is above the agreed upon price on the settlement date. The Fund may dispose of or renegotiate a transaction after it is entered into, and may purchase or sell when-issued, delayed delivery or forward commitment securities before the settlement date, which may result in a gain or loss.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $300 Million | 0.65 |
Over $300 Million | 0.55 |
The Fund’s actual investment advisory fee rate for the reporting period was 0.58% of average annual net assets before any applicable waivers.
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.63% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. The previous expense limit (for at least a one-year period commencing October 28, 2019) was 0.69%. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur
Janus Henderson High-Yield Fund
Notes to Financial Statements
with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class R Shares, Class S Shares, and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class R Shares, Class S Shares, and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, of up to 0.50% of the Class R Shares' average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of
Janus Henderson High-Yield Fund
Notes to Financial Statements
certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 4.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $6,590.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were
Janus Henderson High-Yield Fund
Notes to Financial Statements
no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $1.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by Janus Capital in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the year ended June 30, 2021, the Fund engaged in cross trades amounting to $1,326,212 in purchases and $17,539,844 in sales, resulting in a net realized gain of $831,301. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, derivatives, and foreign currency contract adjustments. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 1,008,775 | $ - | $(164,508,515) | $ - | $ - | $ (419,768) | $ 52,536,431 | |
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended June 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(36,270,567) | $(128,237,948) | $ (164,508,515) | | |
During the year ended June 30, 2021, capital loss carryovers of $53,935,576 were utilized by the Fund.
Janus Henderson High-Yield Fund
Notes to Financial Statements
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 1,148,500,105 | $54,508,311 | $ (1,971,880) | $ 52,536,431 |
Information on the tax components of derivatives as of June 30, 2021 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (2,943,336) | $ - | $ (159,375) | $ (159,375) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 57,540,006 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 63,892,794 | $ - | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ - | $ 855,918 | $ (855,918) |
Janus Henderson High-Yield Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 2,009,802 | $ 16,774,183 | | 3,416,062 | $ 27,993,641 |
Reinvested dividends and distributions | 185,301 | 1,549,748 | | 198,553 | 1,605,048 |
Shares repurchased | (1,984,823) | (16,488,687) | | (2,794,684) | (22,305,335) |
Net Increase/(Decrease) | 210,280 | $ 1,835,244 | | 819,931 | $ 7,293,354 |
Class C Shares: | | | | | |
Shares sold | 247,959 | $ 2,103,673 | | 263,688 | $ 2,137,044 |
Reinvested dividends and distributions | 43,515 | 362,385 | | 69,745 | 566,128 |
Shares repurchased | (1,017,214) | (8,506,398) | | (1,497,723) | (12,259,900) |
Net Increase/(Decrease) | (725,740) | $ (6,040,340) | | (1,164,290) | $ (9,556,728) |
Class D Shares: | | | | | |
Shares sold | 5,745,515 | $ 48,149,042 | | 6,066,144 | $ 49,262,836 |
Reinvested dividends and distributions | 1,727,505 | 14,449,045 | | 1,911,493 | 15,478,018 |
Shares repurchased | (6,974,824) | (58,106,428) | | (9,944,963) | (78,050,503) |
Net Increase/(Decrease) | 498,196 | $ 4,491,659 | | (1,967,326) | $ (13,309,649) |
Class I Shares: | | | | | |
Shares sold | 13,678,667 | $114,181,772 | | 23,823,014 | $185,810,346 |
Reinvested dividends and distributions | 1,354,977 | 11,346,317 | | 1,536,962 | 12,472,189 |
Shares repurchased | (17,667,239) | (146,261,900) | | (26,847,121) | (215,499,626) |
Net Increase/(Decrease) | (2,633,595) | $ (20,733,811) | | (1,487,145) | $ (17,217,091) |
Class N Shares: | | | | | |
Shares sold | 4,554,831 | $ 38,266,978 | | 6,048,149 | $ 49,172,104 |
Reinvested dividends and distributions | 861,943 | 7,210,070 | | 878,660 | 7,093,462 |
Shares repurchased | (4,779,969) | (39,974,595) | | (5,168,590) | (40,713,192) |
Net Increase/(Decrease) | 636,805 | $ 5,502,453 | | 1,758,219 | $ 15,552,374 |
Class R Shares: | | | | | |
Shares sold | 800,060 | $ 6,792,954 | | 47,615 | $ 374,994 |
Reinvested dividends and distributions | 19,408 | 164,485 | | 8,480 | 68,245 |
Shares repurchased | (116,730) | (967,498) | | (51,204) | (420,164) |
Net Increase/(Decrease) | 702,738 | $ 5,989,941 | | 4,891 | $ 23,075 |
Class S Shares: | | | | | |
Shares sold | 36,177 | $ 304,590 | | 94,345 | $ 772,455 |
Reinvested dividends and distributions | 11,414 | 95,687 | | 10,246 | 82,835 |
Shares repurchased | (27,913) | (232,708) | | (44,834) | (345,174) |
Net Increase/(Decrease) | 19,678 | $ 167,569 | | 59,757 | $ 510,116 |
Class T Shares: | | | | | |
Shares sold | 7,656,581 | $ 64,426,240 | | 9,432,880 | $ 76,501,907 |
Reinvested dividends and distributions | 2,106,726 | 17,618,681 | | 2,577,450 | 20,892,141 |
Shares repurchased | (11,644,019) | (97,448,065) | | (20,134,983) | (159,940,614) |
Net Increase/(Decrease) | (1,880,712) | $ (15,403,144) | | (8,124,653) | $ (62,546,566) |
7. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$1,324,396,035 | $1,347,594,129 | $ - | $ - |
Janus Henderson High-Yield Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson High-Yield Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson High-Yield Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson High-Yield Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson High-Yield Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson High-Yield Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson High-Yield Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson High-Yield Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson High-Yield Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson High-Yield Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson High-Yield Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson High-Yield Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson High-Yield Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson High-Yield Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson High-Yield Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson High-Yield Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson High-Yield Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson High-Yield Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson High-Yield Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson High-Yield Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Section 163(j) Interest Dividend | 100% |
Dividends Received Deduction Percentage | 2% |
Qualified Dividend Income Percentage | 2% |
Janus Henderson High-Yield Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson High-Yield Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson High-Yield Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson High-Yield Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson High-Yield Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson High-Yield Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson High-Yield Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Seth Meyer
151 Detroit Street
Denver, CO 80206
DOB: 1976 | Executive Vice President and Co-Portfolio Manager
Janus Henderson High-Yield Fund | 12/15-Present
| Portfolio Manager for other Janus Henderson accounts. |
Brent Olson
151 Detroit Street
Denver, CO 80206
DOB: 1967 | Executive Vice President and Co-Portfolio Manager
Janus Henderson High-Yield Fund | 6/19-Present | Portfolio Manager for other Janus Henderson accounts. Formerly, credit analyst at Janus Henderson Investors (2017-2019), and lead portfolio manager at Scout Investments on a growth equity strategy (2013-2017). |
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Janus Henderson High-Yield Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
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Janus Henderson High-Yield Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962
| Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer
| 3/05-Present
2/05-Present
| Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson High-Yield Fund
Notes
NotesPage1
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
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| | | ANNUAL REPORT June 30, 2021 |
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| | Janus Henderson International Managed Volatility Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson International Managed Volatility Fund
Janus Henderson International Managed Volatility Fund (unaudited)
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FUND SNAPSHOT Intech’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | | | | | Sub-advised by Intech Investment Management LLC |
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PERFORMANCE OVERVIEW
For the 12-month period ended June 30, 2021, Janus Henderson International Managed Volatility Fund’s Class I Shares returned 19.48%. This compares to the 32.35% return posted by the MSCI EAFE® Index, the Fund’s benchmark.
INVESTMENT STRATEGY
Intech’s mathematical investment process is designed to determine potentially more efficient equity weightings of the securities in the benchmark index, utilizing a specific mathematical optimization and disciplined rebalancing routine. Rather than trying to predict the future direction of stock prices, the process seeks to use the volatility and correlation characteristics of stocks to construct portfolios.
The investment process begins with the stocks in the MSCI EAFE Index. Intech’s investment process aims to capture stocks’ natural volatility through a rebalancing mechanism based on estimates of relative volatility and correlation in order to outperform the benchmark index over the long term. Within specific risk constraints, the investment process will tend to balance risk reduction with diversification potential captured through periodic rebalancing. Once the target proportions are determined and the portfolio is constructed, it is then rebalanced to those target proportions and re-optimized on a periodic basis. The Janus Henderson International Managed Volatility Fund focuses on seeking an excess return above the benchmark, while also providing downside protection in down markets with upside participation in rising markets for greater performance consistency across changing market environments.
PERFORMANCE REVIEW
International equity markets rebounded strongly and quickly recovered the losses suffered from the drawdown amid the COVID crisis with the MSCI EAFE Index gaining over 32% over the past 12 months. The sharp rally that began in the second half of 2020 continued into 2021 despite concerns of inflation and uncertainty surrounding future stimulus efforts.
While the portfolio’s smaller size positioning was a tailwind during the period, the Fund was negatively impacted by its overall defensive positioning in what was generally a risk-on environment. In particular, an average overweight to lower-beta stocks and underweight to higher-beta stocks was a headwind on relative performance as higher-beta stocks generally outperformed over the past 12 months.
From a sector perspective, the Fund was negatively impacted by average overweights to consumer staples and utilities, as well as an average underweight to financials, during the period. Adverse stock selection effects also detracted during the period, especially within the consumer discretionary, consumer staples and materials sectors.
OUTLOOK
Because Intech does not conduct traditional economic or fundamental analysis, Intech has no view on individual stocks, sectors, economic, or market conditions. Managing downside exposure potentially allows for returns to compound and improve risk-adjusted returns over time. Over the long term, we believe that by providing downside protection in down markets with upside participation in rising markets, the Fund will achieve its investment objective of producing an excess return over the benchmark with lower absolute risk. Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. As Intech’s ongoing research efforts yield modest improvements, we will continue implementing changes that we believe are likely to improve the long-term results for our fund shareholders.
Thank you for your investment in Janus Henderson International Managed Volatility Fund.
Janus Henderson International Managed Volatility Fund (unaudited)
Fund At A Glance
June 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Novo Nordisk A/S | |
Pharmaceuticals | 4.5% |
Geberit AG | |
Building Products | 4.2% |
Neste Oyj | |
Oil, Gas & Consumable Fuels | 3.7% |
Nice Ltd | |
Software | 3.6% |
Coloplast A/S | |
Health Care Equipment & Supplies | 3.6% |
| | 19.6% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.4% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.7% | |
Preferred Stocks | | 0.3% | |
Investment Companies | | 0.1% | |
Other | | (0.5)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of June 30, 2021 
| As of June 30, 2020 
|
Janus Henderson International Managed Volatility Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 19.09% | 6.35% | 5.12% | 2.62% | | | 1.42% | 1.16% |
Class A Shares at MOP | | 12.27% | 5.09% | 4.50% | 2.19% | | | | |
Class C Shares at NAV | | 18.31% | 5.62% | 4.65% | 2.20% | | | 2.24% | 1.93% |
Class C Shares at CDSC | | 17.31% | 5.62% | 4.65% | 2.20% | | | | |
Class D Shares | | 19.30% | 6.62% | 5.39% | 2.72% | | | 1.12% | 0.95% |
Class I Shares | | 19.48% | 6.73% | 5.49% | 2.85% | | | 0.93% | 0.90% |
Class N Shares | | 19.38% | 6.83% | 5.54% | 2.89% | | | 0.81% | 0.80% |
Class S Shares | | 18.94% | 6.27% | 5.09% | 2.57% | | | 1.61% | 1.30% |
Class T Shares | | 19.25% | 6.58% | 5.25% | 2.18% | | | 1.14% | 1.05% |
MSCI EAFE Index | | 32.35% | 10.28% | 5.89% | 3.04% | | | | |
Morningstar Quartile - Class I Shares | | 4th | 4th | 4th | 4th | | | | |
Morningstar Ranking - based on total returns for Foreign Large Growth Funds | | 440/449 | 390/396 | 319/329 | 237/247 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different
Janus Henderson International Managed Volatility Fund (unaudited)
Performance
risks. Please see the prospectus for more information about risks, holdings and other details.
Intech's focus on managed volatility may keep the Fund from achieving excess returns over its index. The strategy may underperform during certain periods of up markets, and may not achieve the desired level of protection in down markets.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of the predecessor fund into corresponding shares of the Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the historical performance of each corresponding class of the predecessor fund prior to the reorganization, calculated using the fees and expenses of the corresponding class of the predecessor fund respectively, net of any applicable fee and expense limitations or waivers.
Class D Shares commenced operations on April 24, 2015. Performance shown for periods prior to April 24, 2015, reflects the historical performance of the Fund’s Class I Shares, calculated using the fees and expenses of Class D Shares, without the effect of any applicable fee and expense limitations or waivers.
Class T Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the historical performance of the predecessor fund’s Class I Shares, calculated using the fees and expenses of Class T Shares, without the effect of any fee and expense limitations or waivers.
Class N Shares commenced operations on October 28, 2016. Performance shown for periods prior to October 28, 2016, reflects the historical performance of the Fund’s and predecessor fund’s Class I Shares, calculated using the fees and expenses of Class I Shares, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The predecessor Fund’s inception date – May 2, 2007
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson International Managed Volatility Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $1,030.10 | $5.74 | | $1,000.00 | $1,019.14 | $5.71 | 1.14% |
Class C Shares | $1,000.00 | $1,027.70 | $9.20 | | $1,000.00 | $1,015.72 | $9.15 | 1.83% |
Class D Shares | $1,000.00 | $1,031.70 | $4.68 | | $1,000.00 | $1,020.18 | $4.66 | 0.93% |
Class I Shares | $1,000.00 | $1,032.60 | $4.38 | | $1,000.00 | $1,020.48 | $4.36 | 0.87% |
Class N Shares | $1,000.00 | $1,031.60 | $4.03 | | $1,000.00 | $1,020.83 | $4.01 | 0.80% |
Class S Shares | $1,000.00 | $1,030.30 | $6.49 | | $1,000.00 | $1,018.40 | $6.46 | 1.29% |
Class T Shares | $1,000.00 | $1,031.60 | $5.19 | | $1,000.00 | $1,019.69 | $5.16 | 1.03% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson International Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 99.4% | | | |
Air Freight & Logistics – 0.5% | | | |
| | DSV Panalpina A/S | | 1,046 | | | $243,972 | |
Auto Components – 0.2% | | | |
| | Koito Manufacturing Co Ltd | | 1,800 | | | 111,973 | |
Automobiles – 0.2% | | | |
| | Ferrari NV | | 491 | | | 101,291 | |
Banks – 1.5% | | | |
| | Bank Leumi Le-Israel BM* | | 18,252 | | | 138,783 | |
| | Banque Cantonale Vaudoise (REG) | | 1,377 | | | 123,707 | |
| | BOC Hong Kong Holdings Ltd | | 107,500 | | | 364,836 | |
| | Japan Post Bank Co Ltd | | 10,400 | | | 87,353 | |
| | Royal Bank of Scotland Group PLC | | 31,177 | | | 87,622 | |
| | | 802,301 | |
Beverages – 0.9% | | | |
| | Heineken NV | | 3,804 | | | 460,927 | |
Building Products – 5.0% | | | |
| | Geberit AG | | 2,963 | | | 2,223,051 | |
| | LIXIL Group Corp | | 7,800 | | | 201,741 | |
| | Xinyi Glass Holdings Ltd | | 54,000 | | | 220,129 | |
| | | 2,644,921 | |
Capital Markets – 5.4% | | | |
| | Hong Kong Exchanges & Clearing Ltd | | 3,900 | | | 232,470 | |
| | London Stock Exchange Group PLC | | 2,900 | | | 319,677 | |
| | Partners Group Holding AG | | 1,154 | | | 1,748,466 | |
| | Singapore Exchange Ltd | | 63,700 | | | 529,728 | |
| | | 2,830,341 | |
Chemicals – 4.5% | | | |
| | EMS-Chemie Holding AG | | 622 | | | 611,241 | |
| | Koninklijke DSM NV | | 5,152 | | | 961,438 | |
| | Novozymes A/S | | 1,943 | | | 146,477 | |
| | Shin-Etsu Chemical Co Ltd | | 3,300 | | | 551,981 | |
| | Sika AG (REG) | | 290 | | | 94,838 | |
| | | 2,365,975 | |
Construction Materials – 0.2% | | | |
| | James Hardie Industries PLC (CDI) | | 3,211 | | | 108,992 | |
Diversified Financial Services – 0.4% | | | |
| | Kinnevik AB - Class B* | | 1,910 | | | 76,484 | |
| | Sofina SA | | 279 | | | 120,339 | |
| | | 196,823 | |
Diversified Telecommunication Services – 1.1% | | | |
| | HKT Trust & HKT Ltd | | 422,000 | | | 575,052 | |
Electric Utilities – 1.0% | | | |
| | Orsted A/S (144A) | | 1,285 | | | 180,342 | |
| | Verbund AG | | 3,627 | | | 333,910 | |
| | | 514,252 | |
Electrical Equipment – 1.1% | | | |
| | Siemens Gamesa Renewable Energy SA | | 17,215 | | | 574,752 | |
Electronic Equipment, Instruments & Components – 1.1% | | | |
| | Kyocera Corp | | 9,500 | | | 587,378 | |
Entertainment – 2.8% | | | |
| | Capcom Co Ltd | | 7,100 | | | 207,733 | |
| | Koei Tecmo Holdings Co Ltd | | 5,700 | | | 278,124 | |
| | Konami Holdings Corp | | 2,900 | | | 174,136 | |
| | Nexon Co Ltd | | 20,300 | | | 452,492 | |
| | Nintendo Co Ltd | | 400 | | | 232,697 | |
| | Square Enix Holdings Co Ltd | | 3,100 | | | 153,772 | |
| | | 1,498,954 | |
Equity Real Estate Investment Trusts (REITs) – 3.4% | | | |
| | GLP Capital LP / GLP Financing II Inc | | 150 | | | 258,732 | |
| | Goodman Group | | 5,740 | | | 91,112 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | JUNE 30, 2021 |
Janus Henderson International Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Equity Real Estate Investment Trusts (REITs)– (continued) | | | |
| | Japan Real Estate Investment Corp | | 70 | | | $430,411 | |
| | Link | | 37,500 | | | 363,452 | |
| | Nippon Prologis Inc | | 205 | | | 652,390 | |
| | | 1,796,097 | |
Food & Staples Retailing – 4.1% | | | |
| | Colruyt SA | | 10,004 | | | 559,356 | |
| | Endeavor Group Ltd / Australia* | | 21,808 | | | 102,852 | |
| | ICA Gruppen AB | | 6,692 | | | 311,541 | |
| | Kesko Oyj | | 11,145 | | | 411,603 | |
| | Kobe Bussan Co Ltd | | 4,900 | | | 154,393 | |
| | Woolworths Group Ltd | | 21,808 | | | 623,488 | |
| | | 2,163,233 | |
Food Products – 2.4% | | | |
| | Barry Callebaut AG (REG) | | 179 | | | 416,054 | |
| | Mowi ASA | | 5,561 | | | 141,509 | |
| | Nestle SA (REG) | | 5,826 | | | 725,699 | |
| | | 1,283,262 | |
Gas Utilities – 0.2% | | | |
| | Toho Gas Co Ltd | | 2,400 | | | 117,537 | |
Health Care Equipment & Supplies – 5.6% | | | |
| | Coloplast A/S | | 11,503 | | | 1,887,723 | |
| | Olympus Corp | | 7,600 | | | 151,070 | |
| | Siemens Healthineers AG (144A) | | 1,598 | | | 97,913 | |
| | Sonova Holding AG (REG) | | 1,452 | | | 546,266 | |
| | Sysmex Corp | | 2,100 | | | 249,550 | |
| | | 2,932,522 | |
Health Care Providers & Services – 1.0% | | | |
| | Amplifon SpA | | 2,718 | | | 134,184 | |
| | Sonic Healthcare Ltd | | 13,923 | | | 400,875 | |
| | | 535,059 | |
Health Care Technology – 0.2% | | | |
| | M3 Inc | | 1,600 | | | 116,860 | |
Hotels, Restaurants & Leisure – 2.9% | | | |
| | Evolution Gaming Group AB (144A) | | 468 | | | 73,978 | |
| | McDonald's Holdings Co Japan Ltd | | 5,800 | | | 255,852 | |
| | Oriental Land Co Ltd/Japan | | 8,600 | | | 1,225,585 | |
| | | 1,555,415 | |
Household Durables – 0.4% | | | |
| | Rinnai Corp | | 2,400 | | | 228,376 | |
Household Products – 0.8% | | | |
| | Essity AB | | 7,871 | | | 261,091 | |
| | Reckitt Benckiser Group PLC | | 1,727 | | | 152,800 | |
| | | 413,891 | |
Industrial Conglomerates – 2.7% | | | |
| | Investment AB Latour - Class B | | 3,570 | | | 117,170 | |
| | Jardine Matheson Holdings Ltd | | 9,300 | | | 594,456 | |
| | Toshiba Corp# | | 16,700 | | | 722,394 | |
| | | 1,434,020 | |
Information Technology Services – 2.2% | | | |
| | Adyen NV (144A)* | | 205 | | | 500,803 | |
| | Fujitsu Ltd | | 2,600 | | | 486,856 | |
| | Otsuka Corp | | 2,900 | | | 152,206 | |
| | | 1,139,865 | |
Insurance – 1.7% | | | |
| | Admiral Group PLC | | 3,996 | | | 173,766 | |
| | Ageas SA/NV | | 11,307 | | | 627,385 | |
| | Phoenix Group Holdings PLC | | 12,760 | | | 119,374 | |
| | | 920,525 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson International Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Interactive Media & Services – 0.4% | | | |
| | REA Group Ltd | | 793 | | | $100,504 | |
| | SEEK Ltd | | 4,574 | | | 113,656 | |
| | | 214,160 | |
Internet & Direct Marketing Retail – 1.7% | | | |
| | Delivery Hero SE (144A)* | | 1,693 | | | 223,606 | |
| | Ocado Group PLC* | | 17,862 | | | 494,842 | |
| | Rakuten Inc | | 11,700 | | | 132,083 | |
| | Zalando SE (144A)* | | 373 | | | 45,085 | |
| | | 895,616 | |
Leisure Products – 0.8% | | | |
| | Bandai Namco Holdings Inc | | 6,300 | | | 437,166 | |
Life Sciences Tools & Services – 3.5% | | | |
| | Lonza Group AG | | 1,477 | | | 1,047,153 | |
| | QIAGEN NV* | | 14,911 | | | 720,579 | |
| | Sartorius Stedim Biotech | | 175 | | | 82,764 | |
| | | 1,850,496 | |
Machinery – 3.8% | | | |
| | Epiroc AB - Class A | | 5,425 | | | 123,647 | |
| | Knorr-Bremse AG | | 1,558 | | | 179,176 | |
| | Kone OYJ | | 4,682 | | | 381,910 | |
| | Kurita Water Industries Ltd | | 7,000 | | | 335,884 | |
| | Schindler Holding AG | | 275 | | | 80,389 | |
| | Schindler Holding AG (PC) | | 473 | | | 144,712 | |
| | Spirax-Sarco Engineering PLC | | 4,034 | | | 759,642 | |
| | | 2,005,360 | |
Marine – 3.4% | | | |
| | AP Moller - Maersk A/S - Class B | | 29 | | | 83,365 | |
| | Kuehne + Nagel International AG | | 4,541 | | | 1,554,249 | |
| | Nippon Yusen KK | | 3,000 | | | 152,053 | |
| | | 1,789,667 | |
Media – 0.8% | | | |
| | CyberAgent Inc | | 16,600 | | | 356,419 | |
| | Publicis Groupe SA | | 1,213 | | | 77,573 | |
| | | 433,992 | |
Metals & Mining – 1.3% | | | |
| | Antofagasta PLC | | 4,453 | | | 88,412 | |
| | Evolution Mining Ltd | | 82,354 | | | 277,870 | |
| | Fortescue Metals Group Ltd | | 8,549 | | | 149,610 | |
| | Norsk Hydro ASA | | 18,396 | | | 117,436 | |
| | voestalpine AG | | 1,914 | | | 77,926 | |
| | | 711,254 | |
Multiline Retail – 1.4% | | | |
| | Wesfarmers Ltd | | 16,613 | | | 736,174 | |
Oil, Gas & Consumable Fuels – 4.0% | | | |
| | Neste Oyj | | 31,828 | | | 1,948,661 | |
| | Washington H Soul Pattinson & Co Ltd | | 5,643 | | | 142,716 | |
| | | 2,091,377 | |
Paper & Forest Products – 0.2% | | | |
| | Svenska Cellulosa AB SCA | | 7,201 | | | 118,044 | |
Personal Products – 1.8% | | | |
| | Kobayashi Pharmaceutical Co Ltd | | 3,900 | | | 333,192 | |
| | Shiseido Co Ltd | | 8,500 | | | 625,257 | |
| | | 958,449 | |
Pharmaceuticals – 5.6% | | | |
| | Daiichi Sankyo Co Ltd | | 15,800 | | | 340,593 | |
| | Novo Nordisk A/S | | 28,248 | | | 2,366,952 | |
| | Ono Pharmaceutical Co Ltd | | 8,400 | | | 187,465 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson International Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Pharmaceuticals– (continued) | | | |
| | Orion Oyj | | 2,031 | | | $87,289 | |
| | | 2,982,299 | |
Professional Services – 0.3% | | | |
| | Wolters Kluwer NV | | 1,603 | | | 161,013 | |
Real Estate Management & Development – 0.6% | | | |
| | Deutsche Wohnen SE | | 3,728 | | | 227,981 | |
| | Sumitomo Realty & Development Co Ltd | | 2,700 | | | 96,498 | |
| | | 324,479 | |
Road & Rail – 0.2% | | | |
| | Nippon Express Co Ltd | | 1,300 | | | 99,010 | |
Semiconductor & Semiconductor Equipment – 2.3% | | | |
| | Renesas Electronics Corp* | | 18,000 | | | 194,616 | |
| | Tokyo Electron Ltd | | 2,400 | | | 1,038,819 | |
| | | 1,233,435 | |
Software – 5.3% | | | |
| | Dassault Systemes SE | | 2,596 | | | 629,417 | |
| | Nice Ltd* | | 7,814 | | | 1,910,606 | |
| | WiseTech Global Ltd | | 10,099 | | | 241,781 | |
| | | 2,781,804 | |
Specialty Retail – 0.7% | | | |
| | Nitori Holdings Co Ltd | | 2,100 | | | 371,678 | |
Technology Hardware, Storage & Peripherals – 2.0% | | | |
| | FUJIFILM Holdings Corp | | 1,700 | | | 126,092 | |
| | Logitech International SA | | 7,558 | | | 915,948 | |
| | | 1,042,040 | |
Textiles, Apparel & Luxury Goods – 2.4% | | | |
| | Hermes International | | 76 | | | 110,695 | |
| | Pandora A/S | | 8,591 | | | 1,155,003 | |
| | | 1,265,698 | |
Tobacco – 0.4% | | | |
| | Swedish Match AB | | 26,180 | | | 223,318 | |
Trading Companies & Distributors – 2.0% | | | |
| | ITOCHU Corp | | 32,500 | | | 936,262 | |
| | Toyota Tsusho Corp | | 2,400 | | | 113,432 | |
| | | 1,049,694 | |
Wireless Telecommunication Services – 1.0% | | | |
| | Tele2 AB | | 39,002 | | | 531,539 | |
Total Common Stocks (cost $46,884,272) | | 52,562,328 | |
Preferred Stocks– 0.3% | | | |
Health Care Equipment & Supplies – 0.3% | | | |
| | Sartorius AG((cost $183,392) | | 340 | | | 176,964 | |
Investment Companies– 0.1% | | | |
Money Markets – 0.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº,£((cost $30,000) | | 29,997 | | | 30,000 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.7% | | | |
Investment Companies – 0.6% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 292,480 | | | 292,480 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.0500%, 7/1/21 | | $73,120 | | | 73,120 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $365,600) | | 365,600 | |
Total Investments (total cost $47,463,264) – 100.5% | | 53,134,892 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.5)% | | (256,891) | |
Net Assets – 100% | | $52,878,001 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson International Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
Japan | | $14,118,111 | | 26.6 | % |
Switzerland | | 10,231,773 | | 19.3 | |
Denmark | | 6,063,834 | | 11.4 | |
Australia | | 3,089,630 | | 5.8 | |
Finland | | 2,829,463 | | 5.3 | |
Hong Kong | | 2,350,395 | | 4.4 | |
United Kingdom | | 2,196,135 | | 4.1 | |
Netherlands | | 2,084,181 | | 3.9 | |
Israel | | 2,049,389 | | 3.9 | |
Sweden | | 1,836,812 | | 3.5 | |
Germany | | 1,671,304 | | 3.1 | |
Belgium | | 1,307,080 | | 2.5 | |
France | | 900,449 | | 1.7 | |
Spain | | 574,752 | | 1.1 | |
Singapore | | 529,728 | | 1.0 | |
Austria | | 411,836 | | 0.8 | |
United States | | 395,600 | | 0.7 | |
Norway | | 258,945 | | 0.5 | |
Italy | | 235,475 | | 0.4 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson International Managed Volatility Fund
Schedule of Investments
June 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 6/30/21 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | $ | 359 | $ | 22 | $ | - | $ | 30,000 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 875∆ | | - | | - | | 292,480 |
Total Affiliated Investments - 0.7% | $ | 1,234 | $ | 22 | $ | - | $ | 322,480 |
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | | 429,000 | | 23,589,450 | | (23,988,472) | | 30,000 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | - | | 2,015,724 | | (1,723,244) | | 292,480 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson International Managed Volatility Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI EAFE® Index | MSCI EAFE® (Europe, Australasia, Far East) Index reflects the equity market performance of developed markets, excluding the U.S. and Canada. |
| | |
CDI | Clearing House Electronic Subregister System Depositary Interest |
LLC | Limited Liability Company |
LP | Limited Partnership |
PC | Participation Certificate |
PLC | Public Limited Company |
REG | Registered |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the year ended June 30, 2021 is $1,121,727, which represents 2.1% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of June 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at June 30, 2021. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | $ | 52,562,328 | $ | - | $ | - |
Preferred Stocks | | - | | 176,964 | | - |
Investment Companies | | - | | 30,000 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 365,600 | | - |
Total Assets | $ | 52,562,328 | $ | 572,564 | $ | - |
| | | | | | | |
Janus Henderson International Managed Volatility Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $47,140,784)(1) | | $ | 52,812,412 | |
| Affiliated investments, at value (cost $322,480) | | | 322,480 | |
| Cash denominated in foreign currency (cost $7,807) | | | 7,807 | |
| Non-interested Trustees' deferred compensation | | | 1,288 | |
| Receivables: | | | | |
| | Foreign tax reclaims | | | 183,768 | |
| | Dividends | | | 54,318 | |
| | Fund shares sold | | | 24,742 | |
| | Dividends from affiliates | | | 4 | |
| Other assets | | | 11,961 | |
Total Assets | | | 53,418,780 | |
Liabilities: | | | | |
| Due to custodian | | | 8 | |
| Collateral for securities loaned (Note 2) | | | 365,600 | |
| Payables: | | | — | |
| | Professional fees | | | 51,132 | |
| | Fund shares repurchased | | | 46,098 | |
| | Registration fees | | | 26,673 | |
| | Non-affiliated fund administration fees payable | | | 20,833 | |
| | Advisory fees | | | 10,548 | |
| | Transfer agent fees and expenses | | | 5,028 | |
| | Custodian fees | | | 4,480 | |
| | Non-interested Trustees' deferred compensation fees | | | 1,288 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 969 | |
| | Non-interested Trustees' fees and expenses | | | 181 | |
| | Affiliated fund administration fees payable | | | 110 | |
| | Accrued expenses and other payables | | | 7,831 | |
Total Liabilities | | | 540,779 | |
Net Assets | | $ | 52,878,001 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson International Managed Volatility Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 41,931,559 | |
| Total distributable earnings (loss) | | | 10,946,442 | |
Total Net Assets | | $ | 52,878,001 | |
Net Assets - Class A Shares | | $ | 796,367 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 83,022 | |
Net Asset Value Per Share(2) | | $ | 9.59 | |
Maximum Offering Price Per Share(3) | | $ | 10.18 | |
Net Assets - Class C Shares | | $ | 600,362 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 64,632 | |
Net Asset Value Per Share(2) | | $ | 9.29 | |
Net Assets - Class D Shares | | $ | 4,052,411 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 429,067 | |
Net Asset Value Per Share | | $ | 9.44 | |
Net Assets - Class I Shares | | $ | 16,991,481 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,791,342 | |
Net Asset Value Per Share | | $ | 9.49 | |
Net Assets - Class N Shares | | $ | 24,947,572 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,633,108 | |
Net Asset Value Per Share | | $ | 9.47 | |
Net Assets - Class S Shares | | $ | 1,404,865 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 147,488 | |
Net Asset Value Per Share | | $ | 9.53 | |
Net Assets - Class T Shares | | $ | 4,084,943 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 431,884 | |
Net Asset Value Per Share | | $ | 9.46 | |
| |
(1) Includes $347,858 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson International Managed Volatility Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 1,212,920 | |
| Affiliated securities lending income, net | | 875 | |
| Dividends from affiliates | | 359 | |
| Unaffiliated securities lending income, net | | 9 | |
| Other income | | 7,190 | |
| Foreign tax withheld | | (107,392) | |
Total Investment Income | | 1,113,961 | |
Expenses: | | | |
| Advisory fees | | 285,741 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 2,436 | |
| | Class C Shares | | 7,456 | |
| | Class S Shares | | 3,018 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 4,401 | |
| | Class S Shares | | 3,026 | |
| | Class T Shares | | 10,092 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 915 | |
| | Class C Shares | | 998 | |
| | Class I Shares | | 17,765 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 92 | |
| | Class C Shares | | 71 | |
| | Class D Shares | | 916 | |
| | Class I Shares | | 1,347 | |
| | Class N Shares | | 636 | |
| | Class S Shares | | 44 | |
| | Class T Shares | | 119 | |
| Registration fees | | 118,359 | |
| Non-affiliated fund administration fees | | 67,278 | |
| Professional fees | | 51,173 | |
| Custodian fees | | 23,679 | |
| Shareholder reports expense | | 9,793 | |
| Affiliated fund administration fees | | 1,456 | |
| Non-interested Trustees’ fees and expenses | | 657 | |
| Other expenses | | 8,170 | |
Total Expenses | | 619,638 | |
Less: Excess Expense Reimbursement and Waivers | | (149,461) | |
Net Expenses | | 470,177 | |
Net Investment Income/(Loss) | | 643,784 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson International Managed Volatility Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 8,518,527 | |
| Investments in affiliates | | 22 | |
Total Net Realized Gain/(Loss) on Investments | | 8,518,549 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (257,245) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (257,245) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 8,905,088 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson International Managed Volatility Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 643,784 | | $ | 1,271,298 | |
| Net realized gain/(loss) on investments | | 8,518,549 | | | 1,272,559 | |
| Change in unrealized net appreciation/depreciation | | (257,245) | | | (6,216,477) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 8,905,088 | | | (3,672,620) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (21,532) | | | (57,632) | |
| | Class C Shares | | (18,875) | | | (32,739) | |
| | Class D Shares | | (85,672) | | | (155,581) | |
| | Class I Shares | | (544,515) | | | (2,233,940) | |
| | Class N Shares | | (264,590) | | | (1,582,756) | |
| | Class S Shares | | (23,536) | | | (41,137) | |
| | Class T Shares | | (87,377) | | | (237,320) | |
Net Decrease from Dividends and Distributions to Shareholders | | (1,046,097) | | | (4,341,105) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (297,056) | | | (491,674) | |
| | Class C Shares | | (426,031) | | | (452,613) | |
| | Class D Shares | | (24,823) | | | (595,388) | |
| | Class I Shares | | (18,809,851) | | | (27,654,400) | |
| | Class N Shares | | 11,031,700 | | | (21,025,273) | |
| | Class S Shares | | 16,323 | | | (177,444) | |
| | Class T Shares | | (663,489) | | | (2,112,566) | |
Net Increase/(Decrease) from Capital Share Transactions | | (9,173,227) | | | (52,509,358) | |
Net Increase/(Decrease) in Net Assets | | (1,314,236) | | | (60,523,083) | |
Net Assets: | | | | | | |
| Beginning of period | | 54,192,237 | | | 114,715,320 | |
| End of period | $ | 52,878,001 | | $ | 54,192,237 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson International Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $8.23 | | | $8.94 | | | $9.32 | | | $8.50 | | | $7.96 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | 0.10 | | | 0.14 | | | 0.04 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 1.48 | | | (0.47) | | | (0.19) | | | 0.81 | | | 0.59 | |
| Total from Investment Operations | | 1.56 | | | (0.37) | | | (0.05) | | | 0.85 | | | 0.67 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.34) | | | (0.12) | | | (0.03) | | | (0.13) | |
| | Distributions (from capital gains) | | (0.20) | | | — | | | (0.21) | | | — | | | — | |
| Total Dividends and Distributions | | (0.20) | | | (0.34) | | | (0.33) | | | (0.03) | | | (0.13) | |
| Net Asset Value, End of Period | | $9.59 | | | $8.23 | | | $8.94 | | | $9.32 | | | $8.50 | |
| Total Return* | | 19.09% | | | (4.29)% | | | (0.19)% | | | 10.00% | | | 8.73% | |
| Net Assets, End of Period (in thousands) | | $796 | | | $947 | | | $1,609 | | | $1,358 | | | $8,240 | |
| Average Net Assets for the Period (in thousands) | | $980 | | | $1,371 | | | $1,493 | | | $2,665 | | | $6,776 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.70% | | | 1.42% | | | 1.38% | | | 1.19% | | | 1.14% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.15% | | | 1.20% | | | 1.30% | | | 1.19% | | | 1.14% | |
| | Ratio of Net Investment Income/(Loss) | | 0.90% | | | 1.20% | | | 1.56% | | | 0.43% | | | 1.05% | |
| Portfolio Turnover Rate | | 128% | | | 82% | | | 91% | | | 86% | | | 134% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $8.03 | | | $8.72 | | | $9.07 | | | $8.33 | | | $7.81 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.01 | | | 0.03 | | | 0.05 | | | 0.03 | | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | 1.45 | | | (0.47) | | | (0.15) | | | 0.75 | | | 0.55 | |
| Total from Investment Operations | | 1.46 | | | (0.44) | | | (0.10) | | | 0.78 | | | 0.61 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.25) | | | (0.04) | | | (0.04) | | | (0.09) | |
| | Distributions (from capital gains) | | (0.20) | | | — | | | (0.21) | | | — | | | — | |
| Total Dividends and Distributions | | (0.20) | | | (0.25) | | | (0.25) | | | (0.04) | | | (0.09) | |
| Net Asset Value, End of Period | | $9.29 | | | $8.03 | | | $8.72 | | | $9.07 | | | $8.33 | |
| Total Return* | | 18.31% | | | (5.17)% | | | (0.80)% | | | 9.32% | | | 8.02% | |
| Net Assets, End of Period (in thousands) | | $600 | | | $900 | | | $1,439 | | | $2,035 | | | $2,672 | |
| Average Net Assets for the Period (in thousands) | | $791 | | | $1,111 | | | $1,641 | | | $2,398 | | | $2,289 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.49% | | | 2.24% | | | 2.11% | | | 1.90% | | | 1.89% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.88% | | | 1.99% | | | 2.05% | | | 1.90% | | | 1.89% | |
| | Ratio of Net Investment Income/(Loss) | | 0.14% | | | 0.40% | | | 0.63% | | | 0.30% | | | 0.75% | |
| Portfolio Turnover Rate | | 128% | | | 82% | | | 91% | | | 86% | | | 134% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson International Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $8.09 | | | $8.79 | | | $9.17 | | | $8.43 | | | $7.87 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.11 | | | 0.12 | | | 0.15 | | | 0.13 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 1.44 | | | (0.46) | | | (0.18) | | | 0.74 | | | 0.55 | |
| Total from Investment Operations | | 1.55 | | | (0.34) | | | (0.03) | | | 0.87 | | | 0.69 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.36) | | | (0.14) | | | (0.13) | | | (0.13) | |
| | Distributions (from capital gains) | | (0.20) | | | — | | | (0.21) | | | — | | | — | |
| Total Dividends and Distributions | | (0.20) | | | (0.36) | | | (0.35) | | | (0.13) | | | (0.13) | |
| Net Asset Value, End of Period | | $9.44 | | | $8.09 | | | $8.79 | | | $9.17 | | | $8.43 | |
| Total Return* | | 19.30% | | | (4.06)% | | | 0.07% | | | 10.32% | | | 9.05% | |
| Net Assets, End of Period (in thousands) | | $4,052 | | | $3,492 | | | $4,396 | | | $5,185 | | | $4,412 | |
| Average Net Assets for the Period (in thousands) | | $3,846 | | | $3,808 | | | $4,561 | | | $5,076 | | | $3,132 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.32% | | | 1.12% | | | 1.08% | | | 0.97% | | | 0.99% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.94% | | | 0.96% | | | 1.08% | | | 0.97% | | | 0.99% | |
| | Ratio of Net Investment Income/(Loss) | | 1.22% | | | 1.44% | | | 1.67% | | | 1.36% | | | 1.77% | |
| Portfolio Turnover Rate | | 128% | | | 82% | | | 91% | | | 86% | | | 134% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| | Net Asset Value, Beginning of Period | | $8.12 | | | $8.83 | | | $9.21 | | | $8.46 | | | $7.89 | |
| | Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | | Net investment income/(loss)(1) | | 0.10 | | | 0.12 | | | 0.17 | | | 0.15 | | | 0.12 | |
| | | Net realized and unrealized gain/(loss) | | 1.47 | | | (0.46) | | | (0.19) | | | 0.74 | | | 0.57 | |
| | Total from Investment Operations | | 1.57 | | | (0.34) | | | (0.02) | | | 0.89 | | | 0.69 | |
| | Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | | Dividends (from net investment income) | | — | | | (0.37) | | | (0.15) | | | (0.14) | | | (0.12) | |
| | | Distributions (from capital gains) | | (0.20) | | | — | | | (0.21) | | | — | | | — | |
| | Total Dividends and Distributions | | (0.20) | | | (0.37) | | | (0.36) | | | (0.14) | | | (0.12) | |
| | Net Asset Value, End of Period | | $9.49 | | | $8.12 | | | $8.83 | | | $9.21 | | | $8.46 | |
| | Total Return* | | 19.48% | | | (4.00)% | | | 0.24% | | | 10.51% | | | 8.99% | |
| | Net Assets, End of Period (in thousands) | | $16,991 | | | $31,777 | | | $64,297 | | | $63,538 | | | $34,748 | |
| | Average Net Assets for the Period (in thousands) | | $24,076 | | | $49,482 | | | $63,723 | | | $49,224 | | | $45,492 | |
| | Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | | Ratio of Gross Expenses | | 1.13% | | | 0.93% | | | 0.93% | | | 0.87% | | | 0.80% | |
| | | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.88% | | | 0.86% | | | 0.93% | | | 0.87% | | | 0.80% | |
| | | Ratio of Net Investment Income/(Loss) | | 1.08% | | | 1.47% | | | 1.90% | | | 1.59% | | | 1.51% | |
| | Portfolio Turnover Rate | | 128% | | | 82% | | | 91% | | | 86% | | | 134% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson International Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $8.10 | | | $8.82 | | | $9.20 | | | $8.45 | | | $7.79 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.14 | | | 0.13 | | | 0.17 | | | 0.14 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 1.43 | | | (0.46) | | | (0.18) | | | 0.75 | | | 0.70 | |
| Total from Investment Operations | | 1.57 | | | (0.33) | | | (0.01) | | | 0.89 | | | 0.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.39) | | | (0.16) | | | (0.14) | | | (0.15) | |
| | Distributions (from capital gains) | | (0.20) | | | — | | | (0.21) | | | — | | | — | |
| Total Dividends and Distributions | | (0.20) | | | (0.39) | | | (0.37) | | | (0.14) | | | (0.15) | |
| Net Asset Value, End of Period | | $9.47 | | | $8.10 | | | $8.82 | | | $9.20 | | | $8.45 | |
| Total Return* | | 19.53% | | | (4.00)% | | | 0.32% | | | 10.56% | | | 10.72% | |
| Net Assets, End of Period (in thousands) | | $24,948 | | | $11,752 | | | $34,747 | | | $37,232 | | | $32,840 | |
| Average Net Assets for the Period (in thousands) | | $17,012 | | | $25,984 | | | $35,141 | | | $36,703 | | | $38,721 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.08% | | | 0.81% | | | 0.84% | | | 0.78% | | | 0.80% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.81% | | | 0.77% | | | 0.84% | | | 0.78% | | | 0.80% | |
| | Ratio of Net Investment Income/(Loss) | | 1.60% | | | 1.48% | | | 1.94% | | | 1.53% | | | 2.00% | |
| Portfolio Turnover Rate | | 128% | | | 82% | | | 91% | | | 86% | | | 134% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $8.19 | | | $8.88 | | | $9.28 | | | $8.52 | | | $7.98 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.08 | | | 0.09 | | | 0.13 | | | 0.08 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 1.46 | | | (0.46) | | | (0.19) | | | 0.76 | | | 0.59 | |
| Total from Investment Operations | | 1.54 | | | (0.37) | | | (0.06) | | | 0.84 | | | 0.67 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.32) | | | (0.13) | | | (0.08) | | | (0.13) | |
| | Distributions (from capital gains) | | (0.20) | | | — | | | (0.21) | | | — | | | — | |
| Total Dividends and Distributions | | (0.20) | | | (0.32) | | | (0.34) | | | (0.08) | | | (0.13) | |
| Net Asset Value, End of Period | | $9.53 | | | $8.19 | | | $8.88 | | | $9.28 | | | $8.52 | |
| Total Return* | | 18.94% | | | (4.34)% | | | (0.29)% | | | 9.90% | | | 8.70% | |
| Net Assets, End of Period (in thousands) | | $1,405 | | | $1,197 | | | $1,464 | | | $703 | | | $726 | |
| Average Net Assets for the Period (in thousands) | | $1,210 | | | $1,183 | | | $1,188 | | | $750 | | | $983 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.80% | | | 1.61% | | | 1.60% | | | 1.38% | | | 1.26% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.31% | | | 1.36% | | | 1.45% | | | 1.38% | | | 1.25% | |
| | Ratio of Net Investment Income/(Loss) | | 0.94% | | | 1.07% | | | 1.49% | | | 0.86% | | | 1.02% | |
| Portfolio Turnover Rate | | 128% | | | 82% | | | 91% | | | 86% | | | 134% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from October 28, 2016 (inception date) through June 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | JUNE 30, 2021 |
Janus Henderson International Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $8.11 | | | $8.81 | | | $9.18 | | | $8.42 | | | $7.87 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.10 | | | 0.11 | | | 0.15 | | | 0.11 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 1.45 | | | (0.45) | | | (0.18) | | | 0.76 | | | 0.57 | |
| Total from Investment Operations | | 1.55 | | | (0.34) | | | (0.03) | | | 0.87 | | | 0.68 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.36) | | | (0.13) | | | (0.11) | | | (0.13) | |
| | Distributions (from capital gains) | | (0.20) | | | — | | | (0.21) | | | — | | | — | |
| Total Dividends and Distributions | | (0.20) | | | (0.36) | | | (0.34) | | | (0.11) | | | (0.13) | |
| Net Asset Value, End of Period | | $9.46 | | | $8.11 | | | $8.81 | | | $9.18 | | | $8.42 | |
| Total Return* | | 19.25% | | | (4.09)% | | | 0.00% | | | 10.33% | | | 8.96% | |
| Net Assets, End of Period (in thousands) | | $4,085 | | | $4,125 | | | $6,764 | | | $6,177 | | | $16,803 | |
| Average Net Assets for the Period (in thousands) | | $4,037 | | | $5,402 | | | $6,411 | | | $13,714 | | | $20,165 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.37% | | | 1.14% | | | 1.13% | | | 1.03% | | | 1.00% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.05% | | | 1.04% | | | 1.13% | | | 1.02% | | | 1.00% | |
| | Ratio of Net Investment Income/(Loss) | | 1.08% | | | 1.30% | | | 1.70% | | | 1.15% | | | 1.43% | |
| Portfolio Turnover Rate | | 128% | | | 82% | | | 91% | | | 86% | | | 134% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson International Managed Volatility Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with United States of America generally accepted accounting principles ("US GAAP").
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 347,858 | $ | — | $ | (347,858) | $ | — |
| | | | | | | | | |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
Real Estate Investing
To the extent that real estate-related securities may be included in the Fund’s named benchmark index, Intech’s mathematical investment process may select equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to primarily invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of June 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $347,858. Gross amounts of recognized liabilities for securities lending (collateral received) as of June 30, 2021 is $365,600, resulting in the net amount due to the counterparty of $17,742.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.55% of its average daily net assets.
Intech Investment Management LLC (“Intech”) serves as subadviser to the Fund. As subadviser, Intech provides day-to-day management of the investment operations of the Fund subject to the general oversight of Janus Capital. Janus Capital owns approximately 97% of Intech.
Janus Capital pays Intech a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (net of any fee waivers and expense reimbursements).
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.80% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $36.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $470.
As of June 30, 2021, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 93 | | 44 | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation and foreign currency contract adjustments. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 1,764,587 | $ 3,646,276 | $ - | $ - | $ - | $ (38,651) | $ 5,574,230 | |
During the year ended June 30, 2021, capital loss carryovers of $512,317 were utilized by the Fund. There are no unused capital loss carryovers
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships, and investments in passive foreign investment companies.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 47,560,662 | $ 6,643,403 | $ (1,069,173) | $ 5,574,230 |
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, passive foreign investment companies, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ - | $ 1,046,097 | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 4,341,105 | $ - | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ 1,023,268 | $ 548,470 | $ (1,571,738) |
Capital has been adjusted by $1,023,268, including $827,203 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 8,580 | $ 79,776 | | 15,874 | $ 134,561 |
Reinvested dividends and distributions | 2,351 | 21,532 | | 6,670 | 57,632 |
Shares repurchased | (43,001) | (398,364) | | (87,391) | (683,867) |
Net Increase/(Decrease) | (32,070) | $ (297,056) | | (64,847) | $ (491,674) |
Class C Shares: | | | | | |
Shares sold | 4,464 | $ 38,171 | | 11,160 | $ 84,509 |
Reinvested dividends and distributions | 2,121 | 18,875 | | 3,670 | 31,045 |
Shares repurchased | (54,022) | (483,077) | | (67,896) | (568,167) |
Net Increase/(Decrease) | (47,437) | $ (426,031) | | (53,066) | $ (452,613) |
Class D Shares: | | | | | |
Shares sold | 53,786 | $ 481,891 | | 64,569 | $ 524,070 |
Reinvested dividends and distributions | 9,314 | 83,917 | | 17,800 | 150,942 |
Shares repurchased | (65,792) | (590,631) | | (150,625) | (1,270,400) |
Net Increase/(Decrease) | (2,692) | $ (24,823) | | (68,256) | $ (595,388) |
Class I Shares: | | | | | |
Shares sold | 73,096 | $ 653,940 | | 723,215 | $ 5,868,186 |
Reinvested dividends and distributions | 60,152 | 543,777 | | 262,286 | 2,232,053 |
Shares repurchased | (2,256,457) | (20,007,568) | | (4,355,197) | (35,754,639) |
Net Increase/(Decrease) | (2,123,209) | $(18,809,851) | | (3,369,696) | $(27,654,400) |
Class N Shares: | | | | | |
Shares sold | 1,436,596 | $ 13,271,656 | | 626,540 | $ 5,525,504 |
Reinvested dividends and distributions | 29,301 | 264,590 | | 186,426 | 1,582,756 |
Shares repurchased | (283,068) | (2,504,546) | | (3,303,464) | (28,133,533) |
Net Increase/(Decrease) | 1,182,829 | $ 11,031,700 | | (2,490,498) | $(21,025,273) |
Class S Shares: | | | | | |
Shares sold | 41,248 | $ 366,908 | | 28,983 | $ 243,915 |
Reinvested dividends and distributions | 2,586 | 23,536 | | 4,783 | 41,137 |
Shares repurchased | (42,618) | (374,121) | | (52,343) | (462,496) |
Net Increase/(Decrease) | 1,216 | $ 16,323 | | (18,577) | $ (177,444) |
Class T Shares: | | | | | |
Shares sold | 74,155 | $ 672,213 | | 168,435 | $ 1,414,144 |
Reinvested dividends and distributions | 9,633 | 86,986 | | 27,691 | 235,371 |
Shares repurchased | (160,728) | (1,422,688) | | (454,770) | (3,762,081) |
Net Increase/(Decrease) | (76,940) | $ (663,489) | | (258,644) | $ (2,112,566) |
6. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$65,375,429 | $ 74,465,577 | $ - | $ - |
Janus Henderson International Managed Volatility Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson International Managed Volatility Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson International Managed Volatility Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson International Managed Volatility Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 60-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson International Managed Volatility Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson International Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson International Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson International Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson International Managed Volatility Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Capital Gain Distributions | $1,873,300 |
Foreign Taxes Paid | $104,161 |
Foreign Source Income | $1,149,332 |
Qualified Dividend Income Percentage | 55% |
Janus Henderson International Managed Volatility Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson International Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson International Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson International Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson International Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson International Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson International Managed Volatility Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
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Janus Henderson International Managed Volatility Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson International Managed Volatility Fund
Notes
NotesPage1
Janus Henderson International Managed Volatility Fund
Notes
NotesPage2
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93014 08-21 |
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| | | |
| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson Mid Cap Value Fund |
| | |
| | Janus Investment Fund |
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| | | |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Mid Cap Value Fund
Janus Henderson Mid Cap Value Fund (unaudited)
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FUND SNAPSHOT As defensive value specialists, we look to invest in high-quality companies that have strong management teams, stable balance sheets and durable competitive advantages and are trading at attractive valuations. We seek to achieve excess returns over full market cycles with less risk than our benchmark and peers as measured by standard deviation, beta and down-market capture. | | | | 
Kevin Preloger co-portfolio manager | 
Justin Tugman co-portfolio manager |
| | | |
PERFORMANCE
For the 12-month period ended June 30, 2021, the Janus Henderson Mid Cap Value Fund Class I shares returned 37.15%, while its benchmark, the Russell Midcap® Value Index, returned 53.06%.
INVESTMENT ENVIRONMENT
Stocks delivered positive returns over the period, with gains primarily driven by positive COVID-19 vaccine developments, the U.S. presidential election results, the continuation of unprecedented monetary and fiscal stimulus and, in 2021, healthy economic and earnings growth following the easing of COVID-19 restrictions. For much of the period, high-beta stocks (those with greater volatility compared with the overall market) and non-earners drove the index, and growth stocks outperformed value stocks. Cyclical sectors outperformed, led by materials, energy, consumer discretionary and financials.
In the second half of the period, rising interest rates and higher inflation expectations – as evidenced by the 10-year Treasury yield doubling and the yield curve steepening – led to a sharp outperformance of value relative to growth. Yields subsequently retreated, however, as commodity prices moderated and the Federal Reserve (Fed) signaled it may taper some of its policy support. More speculative, short interest covering behavior dominated the market toward period end.
PERFORMANCE DISCUSSION
The Fund’s underperformance relative to its benchmark was driven by stock selection, primarily in information technology, materials and financials. Stock selection and an underweight in health care and selection in consumer staples contributed positively on a relative basis, as did selection in consumer discretionary, although our sector underweight detracted.
Early in the 12-month period, industries that could benefit from a reopening post the COVID-19 shutdowns continued their sharp ascent, with gaming, hotels, restaurants and housing leading the consumer discretionary sector in the index. Positive vaccine news drove strong index performance in the fourth quarter of 2020 and our more defensively oriented portfolio captured 90% of the gains, with misses mostly relative rather than due to any stock-specific declines.
At the beginning of 2021, high-beta stocks and non-earners continued their strong performance from previous quarters, but this trend reversed in March, when progress on vaccine distribution and hopes for a broad-based economic recovery favored more cyclical and commodities-driven companies. While this period worked to our strengths as value investors, it reversed in May when extreme euphoria and speculative investing again drove market returns. Several factors contributed to this rotation, including lower long-term interest rates. Another round of federal cash payments also reached consumers even as the economy started to reopen. This fueled speculative, short interest covering investing, with many market participants acting as though valuations and profits didn't matter. This rotation led to many of the same excesses we saw in January, with high-beta stocks outperforming low-beta, and money-losing companies outperforming money earners.
Overall, the high-quality value stocks we own found less favor with investors in this environment, which dampened our relative performance. At the individual stock level, the largest detractor was defense contractor BWX Technologies, as the company faced concerns over potential cuts to the Department of Defense budget. These concerns were overdone in our view: The Biden administration's initial budget request included higher defense spending on a year-over-year basis. Because we believed negative sentiment toward defense stocks was out of line with fundamentals, toward period end we took advantage of reduced valuations to add to several defense-oriented names.
Janus Henderson Mid Cap Value Fund (unaudited)
Improved employment and income growth over the period aided longtime holding Levi Strauss & Co. The stock was the largest positive contributor, as the company has benefited from the renewed popularity of denim as well as its marketing partnership with Target.
The portfolio was underweight in the communication services, utilities, energy, consumer discretionary and consumer staples sectors. It was overweight in industrials, information technology and materials. It held a roughly equal weight in financials, real estate and health care.
OUTLOOK
While it is frustrating to see a rational market driven by fundamentals devolve into a renewed period of irrationality, it has not shaken our commitment to our disciplined investment strategy. Quality matters over the long term, and earnings, free cash flow and balance sheet strength – not social media campaigns – ultimately determine a company’s value. We’d also point out that periods of irrationality can end just as quickly as they begin. While we don’t believe in trying to predict the timing of market shifts, we see several factors that may contribute to a renewed focus on fundamentals. For one thing, we believe inflation may prove more persistent than people realize, especially if companies have to pay more to attract and retain workers. Historically, periods of higher inflation have rewarded value over growth. The resulting upward pressure on interest rates would also benefit more interest-rate driven investments such as banks, which are heavily weighted in the value indices. We also caution that as we head into 2022, economic and earnings growth may look less rosy when compared to the artificially supported levels of early 2021, and this could also temper investor euphoria. Above all, we remain committed to using periods of volatility to our advantage, investing in the high-quality mid-cap companies that may be undervalued by the market.
Thank you for your investment in the Janus Henderson Mid Cap Value Fund.
Janus Henderson Mid Cap Value Fund (unaudited)
Fund At A Glance
June 30, 2021
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Levi Strauss & Co | 1.60% | | 0.80% | | BWX Technologies Inc | 3.10% | | -1.67% |
| Citizens Financial Group Inc | 2.49% | | 0.72% | | RenaissanceRe Holdings Ltd | 2.00% | | -1.49% |
| Discover Financial Services | 1.23% | | 0.58% | | NewMarket Corp | 1.52% | | -1.27% |
| Nutrien Ltd | 0.97% | | 0.46% | | Evergy Inc | 1.49% | | -1.19% |
| Qurate Retail Inc | 0.71% | | 0.40% | | Equity LifeStyle Properties Inc | 2.96% | | -0.97% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell Midcap Value Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | 1.28% | | 5.58% | 7.66% |
| Consumer Staples | | 0.40% | | 4.14% | 4.05% |
| Consumer Discretionary | | -0.27% | | 7.38% | 12.12% |
| Energy | | -0.49% | | 1.18% | 4.01% |
| Utilities | | -0.76% | | 7.45% | 8.01% |
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| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell Midcap Value Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | -3.06% | | 11.76% | 9.63% |
| Materials | | -2.52% | | 9.77% | 7.43% |
| Industrials | | -2.22% | | 15.46% | 17.19% |
| Financials | | -2.07% | | 20.35% | 15.60% |
| Communication Services | | -1.96% | | 3.62% | 4.11% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Henderson Mid Cap Value Fund (unaudited)
Fund At A Glance
June 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Equity LifeStyle Properties Inc | |
Equity Real Estate Investment Trusts (REITs) | 3.2% |
Maxim Integrated Products Inc | |
Semiconductor & Semiconductor Equipment | 2.5% |
BWX Technologies Inc | |
Aerospace & Defense | 2.5% |
Globe Life Inc | |
Insurance | 2.5% |
Hartford Financial Services Group Inc | |
Insurance | 2.4% |
| | 13.1% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.5% | |
Repurchase Agreements | | 2.6% | |
Other | | (0.1)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of June 30, 2021 
| As of June 30, 2020 
|
Janus Henderson Mid Cap Value Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
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Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 36.65% | 9.49% | 8.45% | 10.85% | | | 1.19% |
Class A Shares at MOP | | 28.80% | 8.20% | 7.82% | 10.57% | | | |
Class C Shares at NAV | | 35.76% | 8.82% | 7.77% | 10.15% | | | 1.89% |
Class C Shares at CDSC | | 34.76% | 8.82% | 7.77% | 10.15% | | | |
Class D Shares | | 37.11% | 9.82% | 8.77% | 11.08% | | | 0.89% |
Class I Shares | | 37.15% | 9.86% | 8.80% | 11.11% | | | 0.85% |
Class L Shares(1) | | 37.14% | 9.92% | 8.82% | 11.19% | | | 1.05% |
Class N Shares | | 37.34% | 9.97% | 8.91% | 11.14% | | | 0.75% |
Class R Shares | | 36.20% | 9.15% | 8.12% | 10.52% | | | 1.50% |
Class S Shares | | 36.67% | 9.43% | 8.40% | 10.77% | | | 1.25% |
Class T Shares | | 36.95% | 9.71% | 8.67% | 11.03% | | | 0.99% |
Russell Midcap Value Index | | 53.06% | 11.79% | 11.75% | 10.01% | | | |
Morningstar Quartile - Class T Shares | | 4th | 4th | 4th | 1st | | | |
Morningstar Ranking - based on total returns for Mid-Cap Value Funds | | 403/417 | 324/387 | 294/320 | 23/138 | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Class L Shares have a voluntarily agreed administrative fee waiver, which could be changed or terminated at any time.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk
Janus Henderson Mid Cap Value Fund (unaudited)
Performance
securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class reflects the performance of the Fund’s Class J Shares (formerly named Investor Shares), from April 21, 2003 to July 6, 2009, calculated using the fees and expenses of the corresponding class, without the effect of any fee and expense limitations or waivers. For periods prior to April 21, 2003, the performance shown for each class reflects the historical performance of Berger Mid Cap Value Fund – Investor Shares (as a result of a prior reorganization of Berger Mid Cap Value Fund – Investor Shares into the Fund’s former Class J Shares), calculated using the fees and expenses of the corresponding class respectively, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares (formerly named Investor Shares). For the periods prior to April 21, 2003, the performance shown for Class D Shares reflects the historical performance of Berger Mid Cap Value Fund – Investor Shares (as a result of a separate prior reorganization).
Class I Shares commenced operations on July 6, 2009. Performance shown reflects the performance of the Fund’s Class J Shares (formerly named Investor Shares) from April 21, 2003 to July 6, 2009, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers. For the periods prior to April 21, 2003, the performance shown for Class I Shares reflects the historical performance of Berger Mid Cap Value Fund – Investor Shares (as a result of a separate prior reorganization), calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class L Shares commenced operations on April 21, 2003. Performance shown for periods following April 21, 2003, reflects the fees and expenses of Class L Shares (formerly named Institutional Shares), net of any applicable fee and expense limitations or waivers. The performance shown for Class L Shares for the periods from May 17, 2002 to April 17, 2003, reflects the historical performance of Berger Mid Cap Value Fund – Institutional Shares (as a result of a prior reorganization of Berger Mid Cap Value Fund – Institutional Shares into the Fund’s Class L Shares). For the periods prior to May 17, 2002, the performance shown reflects the historical performance of Berger Mid Cap Value Fund – Investor Shares.
Class N Shares of the Fund commenced operations on May 31, 2012. Performance shown for Class N Shares reflects the performance of the Fund’s Class T Shares from July 6, 2009 to May 31, 2012, calculated using the fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers. For the period from April 21, 2003 to July 6, 2009, the performance shown for Class N Shares reflects the performance of Class J Shares (formerly named Investor Shares), calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers. For the periods prior to April 21, 2003, the performance shown for Class N Shares reflects the historical performance of Berger Mid Cap Value Fund – Investor Shares (as a result of a separate prior reorganization), calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class T Shares (formerly named Class J Shares) commenced operations with the Fund’s inception. Performance shown for periods following April 21, 2003, reflects the fees and expenses of Class T Shares in effect during the periods shown, net of any applicable fee and expense limitations or waivers. For the periods prior to April 21, 2003, the performance shown for Class T Shares reflects the historical performance of Berger Mid Cap Value Fund – Investor Shares (as a result of a separate prior reorganization).
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
| |
See important disclosures on the next page. |
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
Janus Henderson Mid Cap Value Fund (unaudited)
Performance
See “Useful Information About Your Fund Report.”
*The predecessor Fund’s inception date – August 12, 1998
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
(1) Closed to new investors.
Janus Henderson Mid Cap Value Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $1,129.10 | $5.02 | | $1,000.00 | $1,020.08 | $4.76 | 0.95% |
Class C Shares | $1,000.00 | $1,125.70 | $8.17 | | $1,000.00 | $1,017.11 | $7.75 | 1.55% |
Class D Shares | $1,000.00 | $1,130.50 | $3.38 | | $1,000.00 | $1,021.62 | $3.21 | 0.64% |
Class I Shares | $1,000.00 | $1,130.90 | $3.12 | | $1,000.00 | $1,021.87 | $2.96 | 0.59% |
Class L Shares | $1,000.00 | $1,131.20 | $3.38 | | $1,000.00 | $1,021.62 | $3.21 | 0.64% |
Class N Shares | $1,000.00 | $1,131.70 | $2.59 | | $1,000.00 | $1,022.36 | $2.46 | 0.49% |
Class R Shares | $1,000.00 | $1,127.50 | $6.49 | | $1,000.00 | $1,018.70 | $6.16 | 1.23% |
Class S Shares | $1,000.00 | $1,129.00 | $5.23 | | $1,000.00 | $1,019.89 | $4.96 | 0.99% |
Class T Shares | $1,000.00 | $1,130.20 | $3.86 | | $1,000.00 | $1,021.17 | $3.66 | 0.73% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Mid Cap Value Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.5% | | | |
Aerospace & Defense – 3.5% | | | |
| | BWX Technologies Inc | | 1,239,209 | | | $72,022,827 | |
| | Mercury Systems Inc* | | 402,105 | | | 26,651,519 | |
| | | 98,674,346 | |
Auto Components – 1.0% | | | |
| | Aptiv PLC* | | 185,271 | | | 29,148,686 | |
Banks – 8.6% | | | |
| | Citizens Financial Group Inc | | 1,250,657 | | | 57,367,637 | |
| | Fifth Third Bancorp | | 1,151,272 | | | 44,013,129 | |
| | First Horizon National Corp | | 3,439,360 | | | 59,432,141 | |
| | M&T Bank Corp | | 249,154 | | | 36,204,568 | |
| | Regions Financial Corp | | 2,443,343 | | | 49,306,662 | |
| | | 246,324,137 | |
Capital Markets – 0.6% | | | |
| | State Street Corp | | 209,516 | | | 17,238,976 | |
Chemicals – 5.9% | | | |
| | Axalta Coating Systems Ltd* | | 1,047,561 | | | 31,940,135 | |
| | Corteva Inc | | 700,395 | | | 31,062,518 | |
| | DuPont de Nemours Inc | | 516,900 | | | 40,013,229 | |
| | FMC Corp | | 328,456 | | | 35,538,939 | |
| | NewMarket Corp | | 4,588 | | | 1,477,244 | |
| | Nutrien Ltd | | 118,447 | | | 7,179,073 | |
| | Westlake Chemical Corp | | 249,881 | | | 22,511,779 | |
| | | 169,722,917 | |
Commercial Services & Supplies – 2.5% | | | |
| | IAA Inc* | | 657,571 | | | 35,863,922 | |
| | Waste Connections Inc | | 309,768 | | | 36,995,592 | |
| | | 72,859,514 | |
Communications Equipment – 2.2% | | | |
| | F5 Networks Inc* | | 201,114 | | | 37,539,939 | |
| | Motorola Solutions Inc | | 116,735 | | | 25,313,985 | |
| | | 62,853,924 | |
Construction & Engineering – 1.0% | | | |
| | EMCOR Group Inc | | 241,558 | | | 29,757,530 | |
Construction Materials – 1.1% | | | |
| | Martin Marietta Materials Inc | | 91,390 | | | 32,151,916 | |
Containers & Packaging – 1.8% | | | |
| | Graphic Packaging Holding Co | | 2,876,712 | | | 52,183,556 | |
Electric Utilities – 4.1% | | | |
| | Alliant Energy Corp | | 1,217,028 | | | 67,861,481 | |
| | Entergy Corp | | 504,476 | | | 50,296,257 | |
| | | 118,157,738 | |
Electrical Equipment – 3.2% | | | |
| | AMETEK Inc | | 398,457 | | | 53,194,010 | |
| | GrafTech International Ltd | | 3,412,211 | | | 39,649,892 | |
| | | 92,843,902 | |
Electronic Equipment, Instruments & Components – 1.6% | | | |
| | Vontier Corp | | 1,381,282 | | | 45,002,168 | |
Entertainment – 1.1% | | | |
| | Electronic Arts Inc | | 225,146 | | | 32,382,749 | |
Equity Real Estate Investment Trusts (REITs) – 10.3% | | | |
| | Americold Realty Trust | | 1,046,224 | | | 39,599,578 | |
| | Apple Hospitality Inc | | 2,752,064 | | | 41,996,497 | |
| | Equity Commonwealth | | 797,706 | | | 20,899,897 | |
| | Equity LifeStyle Properties Inc | | 1,248,058 | | | 92,743,190 | |
| | Equity Residential | | 446,997 | | | 34,418,769 | |
| | Lamar Advertising Co | | 410,243 | | | 42,837,574 | |
| | Public Storage | | 73,161 | | | 21,998,781 | |
| | | 294,494,286 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Mid Cap Value Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Food & Staples Retailing – 2.0% | | | |
| | Casey's General Stores Inc | | 287,339 | | | $55,927,663 | |
Food Products – 1.2% | | | |
| | Tyson Foods Inc | | 450,198 | | | 33,206,604 | |
Health Care Equipment & Supplies – 1.1% | | | |
| | Haemonetics Corp* | | 242,048 | | | 16,130,079 | |
| | Quidel Corp* | | 127,804 | | | 16,374,248 | |
| | | 32,504,327 | |
Health Care Providers & Services – 5.0% | | | |
| | Cardinal Health Inc | | 404,440 | | | 23,089,480 | |
| | Henry Schein Inc* | | 731,008 | | | 54,233,484 | |
| | Laboratory Corp of America Holdings* | | 232,688 | | | 64,186,985 | |
| | | 141,509,949 | |
Health Care Technology – 1.0% | | | |
| | Cerner Corp | | 352,555 | | | 27,555,699 | |
Hotels, Restaurants & Leisure – 0.7% | | | |
| | Cracker Barrel Old Country Store Inc | | 131,579 | | | 19,534,218 | |
Household Durables – 1.1% | | | |
| | Leggett & Platt Inc | | 587,556 | | | 30,441,276 | |
Industrial Conglomerates – 1.0% | | | |
| | Carlisle Cos Inc | | 154,632 | | | 29,593,472 | |
Information Technology Services – 0.9% | | | |
| | Global Payments Inc | | 132,266 | | | 24,805,166 | |
Insurance – 6.7% | | | |
| | Globe Life Inc | | 739,486 | | | 70,436,041 | |
| | Hartford Financial Services Group Inc | | 1,109,505 | | | 68,756,025 | |
| | RenaissanceRe Holdings Ltd | | 349,501 | | | 52,012,739 | |
| | | 191,204,805 | |
Internet & Direct Marketing Retail – 1.1% | | | |
| | Qurate Retail Inc | | 2,357,188 | | | 30,855,591 | |
Life Sciences Tools & Services – 1.2% | | | |
| | Agilent Technologies Inc | | 233,671 | | | 34,538,911 | |
Machinery – 3.1% | | | |
| | Lincoln Electric Holdings Inc | | 346,875 | | | 45,686,906 | |
| | Oshkosh Corp | | 345,913 | | | 43,114,596 | |
| | | 88,801,502 | |
Media – 2.5% | | | |
| | Discovery Inc* | | 1,108,256 | | | 32,117,259 | |
| | Fox Corp - Class B | | 1,129,736 | | | 39,766,707 | |
| | | 71,883,966 | |
Multi-Utilities – 0.9% | | | |
| | DTE Energy Co | | 191,918 | | | 24,872,573 | |
Oil, Gas & Consumable Fuels – 2.5% | | | |
| | Cabot Oil & Gas Corp | | 528,776 | | | 9,232,429 | |
| | Marathon Petroleum Corp | | 537,136 | | | 32,453,757 | |
| | Pioneer Natural Resources Co | | 181,028 | | | 29,420,671 | |
| | | 71,106,857 | |
Pharmaceuticals – 0.3% | | | |
| | Organon & Co* | | 256,137 | | | 7,750,706 | |
Professional Services – 0.7% | | | |
| | Mantech International Corp | | 247,256 | | | 21,397,534 | |
Semiconductor & Semiconductor Equipment – 3.5% | | | |
| | CMC Materials Inc | | 187,429 | | | 28,253,047 | |
| | Maxim Integrated Products Inc | | 683,853 | | | 72,050,752 | |
| | | 100,303,799 | |
Software – 3.9% | | | |
| | CDK Global Inc | | 955,967 | | | 47,502,000 | |
| | Check Point Software Technologies Ltd* | | 186,390 | | | 21,645,471 | |
| | Citrix Systems Inc | | 164,028 | | | 19,235,564 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson Mid Cap Value Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Software– (continued) | | | |
| | Synopsys Inc* | | 84,727 | | | $23,366,859 | |
| | | 111,749,894 | |
Specialty Retail – 3.1% | | | |
| | AutoZone Inc* | | 22,231 | | | 33,173,543 | |
| | O'Reilly Automotive Inc* | | 50,038 | | | 28,332,016 | |
| | Ross Stores Inc | | 220,099 | | | 27,292,276 | |
| | | 88,797,835 | |
Textiles, Apparel & Luxury Goods – 3.2% | | | |
| | Carter's Inc | | 255,065 | | | 26,315,056 | |
| | Columbia Sportswear Co | | 283,819 | | | 27,916,437 | |
| | Levi Strauss & Co | | 1,301,293 | | | 36,071,842 | |
| | | 90,303,335 | |
Trading Companies & Distributors – 2.3% | | | |
| | GATX Corp | | 285,037 | | | 25,217,223 | |
| | MSC Industrial Direct Co Inc | | 454,066 | | | 40,743,342 | |
| | | 65,960,565 | |
Total Common Stocks (cost $1,928,209,705) | | 2,788,402,592 | |
Repurchase Agreements– 2.6% | | | |
| | ING Financial Markets LLC, Joint repurchase agreement, 0.0300%, dated 6/30/21, maturing 7/1/21 to be repurchased at $23,500,020 collateralized by $21,237,098 in U.S. Treasuries 0% - 4.2500%, 11/12/21 - 2/15/51 with a value of $23,970,068 | | $23,500,000 | | | 23,500,000 | |
| | Royal Bank of Canada, NY Branch, Joint repurchase agreement, 0.0300%, dated 6/30/21, maturing 7/1/21 to be repurchased at $50,000,042 collateralized by $44,607,532 in U.S. Treasuries 0.8750% - 6.2500%, 8/15/23 - 8/15/49 with a value of $51,000,051 | | 50,000,000 | | | 50,000,000 | |
Total Repurchase Agreements (cost $73,500,000) | | 73,500,000 | |
Total Investments (total cost $2,001,709,705) – 100.1% | | 2,861,902,592 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | | (3,073,861) | |
Net Assets – 100% | | $2,858,828,731 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $2,833,078,048 | | 99.0 | % |
Israel | | 21,645,471 | | 0.8 | |
Canada | | 7,179,073 | | 0.2 | |
| | | | | | |
| | | | | | |
Total | | $2,861,902,592 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Mid Cap Value Fund
Notes to Schedule of Investments and Other Information
| | |
Russell Midcap® Value Index | Russell Midcap® Value Index reflects the performance of U.S. mid-cap equities with lower price-to-book ratios and lower forecasted growth values. |
| | |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | $ | 2,788,402,592 | $ | - | $ | - |
Repurchase Agreements | | - | | 73,500,000 | | - |
Total Assets | $ | 2,788,402,592 | $ | 73,500,000 | $ | - |
| | | | | | | |
Janus Henderson Mid Cap Value Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Investments, at value (cost $1,928,209,705) | | $ | 2,788,402,592 | |
| Repurchase agreements, at value (cost $73,500,000) | | | 73,500,000 | |
| Cash | | | 80,846 | |
| Non-interested Trustees' deferred compensation | | | 69,677 | |
| Receivables: | | | | |
| | Investments sold | | | 44,023,336 | |
| | Dividends | | | 4,260,031 | |
| | Fund shares sold | | | 3,853,925 | |
| | Interest | | | 61 | |
| Other assets | | | 6,305 | |
Total Assets | | | 2,914,196,773 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Investments purchased | | | 46,725,807 | |
| | Fund shares repurchased | | | 6,671,885 | |
| | Advisory fees | | | 1,154,966 | |
| | Transfer agent fees and expenses | | | 410,582 | |
| | Non-interested Trustees' deferred compensation fees | | | 69,677 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 63,204 | |
| | Professional fees | | | 50,050 | |
| | Non-interested Trustees' fees and expenses | | | 10,841 | |
| | Affiliated fund administration fees payable | | | 5,998 | |
| | Custodian fees | | | 2,187 | |
| | Accrued expenses and other payables | | | 202,845 | |
Total Liabilities | | | 55,368,042 | |
Net Assets | | $ | 2,858,828,731 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Mid Cap Value Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,864,051,967 | |
| Total distributable earnings (loss) | | | 994,776,764 | |
Total Net Assets | | $ | 2,858,828,731 | |
Net Assets - Class A Shares | | $ | 73,117,868 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,056,784 | |
Net Asset Value Per Share(1) | | $ | 18.02 | |
Maximum Offering Price Per Share(2) | | $ | 19.12 | |
Net Assets - Class C Shares | | $ | 10,435,771 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 594,594 | |
Net Asset Value Per Share(1) | | $ | 17.55 | |
Net Assets - Class D Shares | | $ | 752,404,687 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 42,579,100 | |
Net Asset Value Per Share | | $ | 17.67 | |
Net Assets - Class I Shares | | $ | 359,760,638 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 20,315,131 | |
Net Asset Value Per Share | | $ | 17.71 | |
Net Assets - Class L Shares | | $ | 4,994,568 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 273,260 | |
Net Asset Value Per Share | | $ | 18.28 | |
Net Assets - Class N Shares | | $ | 506,429,333 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 28,740,071 | |
Net Asset Value Per Share | | $ | 17.62 | |
Net Assets - Class R Shares | | $ | 43,892,946 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,480,518 | |
Net Asset Value Per Share | | $ | 17.70 | |
Net Assets - Class S Shares | | $ | 97,606,282 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,414,112 | |
Net Asset Value Per Share | | $ | 18.03 | |
Net Assets - Class T Shares | | $ | 1,010,186,638 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 56,784,160 | |
Net Asset Value Per Share | | $ | 17.79 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Mid Cap Value Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 47,234,776 | |
| Interest | | 19,427 | |
| Other income | | 2 | |
| Foreign tax withheld | | (167,353) | |
Total Investment Income | | 47,086,852 | |
Expenses: | | | |
| Advisory fees | | 13,146,189 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 169,618 | |
| | Class C Shares | | 125,645 | |
| | Class R Shares | | 201,465 | |
| | Class S Shares | | 228,101 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 777,689 | |
| | Class L Shares | | 11,667 | |
| | Class R Shares | | 102,958 | |
| | Class S Shares | | 228,698 | |
| | Class T Shares | | 2,428,169 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 132,693 | |
| | Class C Shares | | 14,143 | |
| | Class I Shares | | 325,186 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 4,645 | |
| | Class C Shares | | 782 | |
| | Class D Shares | | 100,619 | |
| | Class I Shares | | 16,035 | |
| | Class L Shares | | 124 | |
| | Class N Shares | | 15,518 | |
| | Class R Shares | | 1,209 | |
| | Class S Shares | | 1,519 | |
| | Class T Shares | | 12,055 | |
| Shareholder reports expense | | 314,645 | |
| Registration fees | | 133,933 | |
| Affiliated fund administration fees | | 76,009 | |
| Professional fees | | 59,724 | |
| Non-interested Trustees’ fees and expenses | | 42,632 | |
| Custodian fees | | 14,309 | |
| Other expenses | | 207,265 | |
Total Expenses | | 18,893,244 | |
Less: Excess Expense Reimbursement and Waivers | | (82,645) | |
Net Expenses | | 18,810,599 | |
Net Investment Income/(Loss) | | 28,276,253 | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | | 188,177,609 | |
Total Net Realized Gain/(Loss) on Investments | | 188,177,609 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 621,100,759 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 621,100,759 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 837,554,621 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Mid Cap Value Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 28,276,253 | | $ | 34,530,255 | |
| Net realized gain/(loss) on investments | | 188,177,609 | | | (5,813,773) | |
| Change in unrealized net appreciation/depreciation | | 621,100,759 | | | (348,352,036) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 837,554,621 | | | (319,635,554) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (508,088) | | | (1,687,781) | |
| | Class C Shares | | (3,002) | | | (358,554) | |
| | Class D Shares | | (7,353,558) | | | (19,139,147) | |
| | Class I Shares | | (3,848,572) | | | (9,499,353) | |
| | Class L Shares | | (48,715) | | | (133,731) | |
| | Class N Shares | | (6,040,805) | | | (16,660,399) | |
| | Class R Shares | | (189,517) | | | (976,034) | |
| | Class S Shares | | (579,504) | | | (2,354,671) | |
| | Class T Shares | | (9,614,226) | | | (27,791,165) | |
Net Decrease from Dividends and Distributions to Shareholders | | (28,185,987) | | | (78,600,835) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (6,318,904) | | | (5,974,312) | |
| | Class C Shares | | (9,443,513) | | | (12,843,935) | |
| | Class D Shares | | (65,427,047) | | | (48,649,667) | |
| | Class I Shares | | (52,908,647) | | | (7,808,524) | |
| | Class L Shares | | (644,412) | | | (1,104,518) | |
| | Class N Shares | | (63,331,338) | | | (130,071,472) | |
| | Class R Shares | | (6,643,267) | | | (11,027,601) | |
| | Class S Shares | | (28,508,327) | | | 4,679,867 | |
| | Class T Shares | | (179,519,126) | | | (157,468,745) | |
Net Increase/(Decrease) from Capital Share Transactions | | (412,744,581) | | | (370,268,907) | |
Net Increase/(Decrease) in Net Assets | | 396,624,053 | | | (768,505,296) | |
Net Assets: | | | | | | |
| Beginning of period | | 2,462,204,678 | | | 3,230,709,974 | |
| End of period | $ | 2,858,828,731 | | $ | 2,462,204,678 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Mid Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.29 | | | $15.33 | | | $16.96 | | | $17.60 | | | $16.56 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.12 | | | 0.13 | | | 0.17 | | | 0.06 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 4.73 | | | (1.82) | | | 0.12 | | | 1.20 | | | 2.59 | |
| Total from Investment Operations | | 4.85 | | | (1.69) | | | 0.29 | | | 1.26 | | | 2.70 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.12) | | | (0.12) | | | (0.13) | | | (0.01) | | | (0.08) | |
| | Distributions (from capital gains) | | — | | | (0.23) | | | (1.79) | | | (1.89) | | | (1.58) | |
| Total Dividends and Distributions | | (0.12) | | | (0.35) | | | (1.92) | | | (1.90) | | | (1.66) | |
| Net Asset Value, End of Period | | $18.02 | | | $13.29 | | | $15.33 | | | $16.96 | | | $17.60 | |
| Total Return* | | 36.65% | | | (11.47)% | | | 3.99% | | | 7.10% | | | 16.76% | |
| Net Assets, End of Period (in thousands) | | $73,118 | | | $59,211 | | | $74,864 | | | $77,496 | | | $105,784 | |
| Average Net Assets for the Period (in thousands) | | $67,847 | | | $71,147 | | | $75,623 | | | $86,398 | | | $122,128 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.97% | | | 1.19% | | | 1.06% | | | 1.15% | | | 0.94% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.97% | | | 1.19% | | | 1.05% | | | 1.13% | | | 0.93% | |
| | Ratio of Net Investment Income/(Loss) | | 0.76% | | | 0.90% | | | 1.09% | | | 0.36% | | | 0.61% | |
| Portfolio Turnover Rate | | 46% | | | 37% | | | 42% | | | 41% | | | 53% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.93 | | | $14.91 | | | $16.49 | | | $17.26 | | | $16.28 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.04 | | | 0.05 | | | 0.07 | | | (0.04) | | | —(2) | |
| | Net realized and unrealized gain/(loss) | | 4.58 | | | (1.80) | | | 0.14 | | | 1.16 | | | 2.56 | |
| Total from Investment Operations | | 4.62 | | | (1.75) | | | 0.21 | | | 1.12 | | | 2.56 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | —(2) | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | — | | | (0.23) | | | (1.79) | | | (1.89) | | | (1.58) | |
| Total Dividends and Distributions | | — | | | (0.23) | | | (1.79) | | | (1.89) | | | (1.58) | |
| Net Asset Value, End of Period | | $17.55 | | | $12.93 | | | $14.91 | | | $16.49 | | | $17.26 | |
| Total Return* | | 35.76% | | | (12.02)% | | | 3.40% | | | 6.40% | | | 16.12% | |
| Net Assets, End of Period (in thousands) | | $10,436 | | | $15,768 | | | $31,418 | | | $58,590 | | | $73,433 | |
| Average Net Assets for the Period (in thousands) | | $12,833 | | | $22,689 | | | $41,945 | | | $67,079 | | | $81,619 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.64% | | | 1.78% | | | 1.64% | | | 1.73% | | | 1.51% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.64% | | | 1.78% | | | 1.64% | | | 1.73% | | | 1.51% | |
| | Ratio of Net Investment Income/(Loss) | | 0.24% | | | 0.32% | | | 0.47% | | | (0.23)% | | | 0.03% | |
| Portfolio Turnover Rate | | 46% | | | 37% | | | 42% | | | 41% | | | 53% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Mid Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.03 | | | $15.04 | | | $16.70 | | | $17.37 | | | $16.37 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.17 | | | 0.17 | | | 0.21 | | | 0.12 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | 4.64 | | | (1.79) | | | 0.11 | | | 1.18 | | | 2.58 | |
| Total from Investment Operations | | 4.81 | | | (1.62) | | | 0.32 | | | 1.30 | | | 2.73 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.16) | | | (0.19) | | | (0.08) | | | (0.15) | |
| | Distributions (from capital gains) | | — | | | (0.23) | | | (1.79) | | | (1.89) | | | (1.58) | |
| Total Dividends and Distributions | | (0.17) | | | (0.39) | | | (1.98) | | | (1.97) | | | (1.73) | |
| Net Asset Value, End of Period | | $17.67 | | | $13.03 | | | $15.04 | | | $16.70 | | | $17.37 | |
| Total Return* | | 37.11% | | | (11.24)% | | | 4.27% | | | 7.45% | | | 17.12% | |
| Net Assets, End of Period (in thousands) | | $752,405 | | | $615,270 | | | $763,597 | | | $822,153 | | | $841,565 | |
| Average Net Assets for the Period (in thousands) | | $680,218 | | | $715,784 | | | $765,452 | | | $843,030 | | | $822,828 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.66% | | | 0.89% | | | 0.73% | | | 0.82% | | | 0.62% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.66% | | | 0.89% | | | 0.73% | | | 0.82% | | | 0.62% | |
| | Ratio of Net Investment Income/(Loss) | | 1.07% | | | 1.18% | | | 1.39% | | | 0.68% | | | 0.90% | |
| Portfolio Turnover Rate | | 46% | | | 37% | | | 42% | | | 41% | | | 53% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.06 | | | $15.07 | | | $16.73 | | | $17.40 | | | $16.39 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.18 | | | 0.22 | | | 0.13 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 4.65 | | | (1.79) | | | 0.10 | | | 1.17 | | | 2.58 | |
| Total from Investment Operations | | 4.83 | | | (1.61) | | | 0.32 | | | 1.30 | | | 2.74 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.18) | | | (0.17) | | | (0.19) | | | (0.08) | | | (0.15) | |
| | Distributions (from capital gains) | | — | | | (0.23) | | | (1.79) | | | (1.89) | | | (1.58) | |
| Total Dividends and Distributions | | (0.18) | | | (0.40) | | | (1.98) | | | (1.97) | | | (1.73) | |
| Net Asset Value, End of Period | | $17.71 | | | $13.06 | | | $15.07 | | | $16.73 | | | $17.40 | |
| Total Return* | | 37.15% | | | (11.16)% | | | 4.33% | | | 7.45% | | | 17.16% | |
| Net Assets, End of Period (in thousands) | | $359,761 | | | $310,803 | | | $364,502 | | | $428,793 | | | $963,098 | |
| Average Net Assets for the Period (in thousands) | | $338,794 | | | $342,719 | | | $386,284 | | | $722,356 | | | $970,761 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.62% | | | 0.85% | | | 0.68% | | | 0.77% | | | 0.61% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.62% | | | 0.85% | | | 0.68% | | | 0.77% | | | 0.61% | |
| | Ratio of Net Investment Income/(Loss) | | 1.13% | | | 1.20% | | | 1.46% | | | 0.71% | | | 0.92% | |
| Portfolio Turnover Rate | | 46% | | | 37% | | | 42% | | | 41% | | | 53% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson Mid Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class L Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.47 | | | $15.54 | | | $17.18 | | | $17.82 | | | $16.69 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.17 | | | 0.18 | | | 0.22 | | | 0.13 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 4.81 | | | (1.86) | | | 0.12 | | | 1.21 | | | 2.69(2) | |
| Total from Investment Operations | | 4.98 | | | (1.68) | | | 0.34 | | | 1.34 | | | 2.86 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.16) | | | (0.19) | | | (0.09) | | | (0.15) | |
| | Distributions (from capital gains) | | — | | | (0.23) | | | (1.79) | | | (1.89) | | | (1.58) | |
| Total Dividends and Distributions | | (0.17) | | | (0.39) | | | (1.98) | | | (1.98) | | | (1.73) | |
| Net Asset Value, End of Period | | $18.28 | | | $13.47 | | | $15.54 | | | $17.18 | | | $17.82 | |
| Total Return* | | 37.14% | | | (11.27)% | | | 4.32% | | | 7.47% | | | 17.62%(2) | |
| Net Assets, End of Period (in thousands) | | $4,995 | | | $4,231 | | | $6,038 | | | $7,129 | | | $8,534 | |
| Average Net Assets for the Period (in thousands) | | $4,679 | | | $5,336 | | | $6,333 | | | $7,889 | | | $9,323 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.83% | | | 1.05% | | | 0.88% | | | 0.93% | | | 0.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.89% | | | 0.72% | | | 0.77% | | | 0.57% | |
| | Ratio of Net Investment Income/(Loss) | | 1.08% | | | 1.20% | | | 1.41% | | | 0.73% | | | 0.97% | |
| Portfolio Turnover Rate | | 46% | | | 37% | | | 42% | | | 41% | | | 53% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.99 | | | $15.00 | | | $16.66 | | | $17.34 | | | $16.35 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.19 | | | 0.20 | | | 0.23 | | | 0.13 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 4.63 | | | (1.80) | | | 0.11 | | | 1.19 | | | 2.57 | |
| Total from Investment Operations | | 4.82 | | | (1.60) | | | 0.34 | | | 1.32 | | | 2.74 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.19) | | | (0.18) | | | (0.21) | | | (0.11) | | | (0.17) | |
| | Distributions (from capital gains) | | — | | | (0.23) | | | (1.79) | | | (1.89) | | | (1.58) | |
| Total Dividends and Distributions | | (0.19) | | | (0.41) | | | (2.00) | | | (2.00) | | | (1.75) | |
| Net Asset Value, End of Period | | $17.62 | | | $12.99 | | | $15.00 | | | $16.66 | | | $17.34 | |
| Total Return* | | 37.34% | | | (11.14)% | | | 4.47% | | | 7.56% | | | 17.25% | |
| Net Assets, End of Period (in thousands) | | $506,429 | | | $422,894 | | | $619,969 | | | $642,746 | | | $119,228 | |
| Average Net Assets for the Period (in thousands) | | $483,187 | | | $595,473 | | | $617,269 | | | $349,395 | | | $95,327 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.52% | | | 0.75% | | | 0.59% | | | 0.72% | | | 0.48% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.52% | | | 0.75% | | | 0.59% | | | 0.72% | | | 0.48% | |
| | Ratio of Net Investment Income/(Loss) | | 1.24% | | | 1.36% | | | 1.54% | | | 0.81% | | | 0.99% | |
| Portfolio Turnover Rate | | 46% | | | 37% | | | 42% | | | 41% | | | 53% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The Net realized and unrealized gain/(loss) per share included an out of period adjustment posted during the year. The impact of the out of period adjustment increased the per share amount by $0.07. The impact of the out of period adjustment to the Total Return was 0.46%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Mid Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.04 | | | $15.06 | | | $16.68 | | | $17.38 | | | $16.38 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | 0.09 | | | 0.12 | | | 0.01 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 4.65 | | | (1.82) | | | 0.13 | | | 1.18 | | | 2.57 | |
| Total from Investment Operations | | 4.73 | | | (1.73) | | | 0.25 | | | 1.19 | | | 2.62 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.07) | | | (0.06) | | | (0.08) | | | — | | | (0.04) | |
| | Distributions (from capital gains) | | — | | | (0.23) | | | (1.79) | | | (1.89) | | | (1.58) | |
| Total Dividends and Distributions | | (0.07) | | | (0.29) | | | (1.87) | | | (1.89) | | | (1.62) | |
| Net Asset Value, End of Period | | $17.70 | | | $13.04 | | | $15.06 | | | $16.68 | | | $17.38 | |
| Total Return* | | 36.38% | | | (11.83)% | | | 3.70% | | | 6.78% | | | 16.40% | |
| Net Assets, End of Period (in thousands) | | $43,893 | | | $38,246 | | | $55,536 | | | $62,802 | | | $71,118 | |
| Average Net Assets for the Period (in thousands) | | $41,183 | | | $48,448 | | | $57,426 | | | $67,666 | | | $74,119 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.26% | | | 1.50% | | | 1.34% | | | 1.42% | | | 1.22% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.26% | | | 1.50% | | | 1.34% | | | 1.42% | | | 1.22% | |
| | Ratio of Net Investment Income/(Loss) | | 0.49% | | | 0.59% | | | 0.79% | | | 0.09% | | | 0.31% | |
| Portfolio Turnover Rate | | 46% | | | 37% | | | 42% | | | 41% | | | 53% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.28 | | | $15.33 | | | $16.90 | | | $17.56 | | | $16.54 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.11 | | | 0.12 | | | 0.17 | | | 0.06 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 4.74 | | | (1.83) | | | 0.12 | | | 1.19 | | | 2.59 | |
| Total from Investment Operations | | 4.85 | | | (1.71) | | | 0.29 | | | 1.25 | | | 2.69 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.10) | | | (0.11) | | | (0.07) | | | (0.02) | | | (0.09) | |
| | Distributions (from capital gains) | | — | | | (0.23) | | | (1.79) | | | (1.89) | | | (1.58) | |
| Total Dividends and Distributions | | (0.10) | | | (0.34) | | | (1.86) | | | (1.91) | | | (1.67) | |
| Net Asset Value, End of Period | | $18.03 | | | $13.28 | | | $15.33 | | | $16.90 | | | $17.56 | |
| Total Return* | | 36.67% | | | (11.58)% | | | 3.93% | | | 7.07% | | | 16.69% | |
| Net Assets, End of Period (in thousands) | | $97,606 | | | $99,159 | | | $110,404 | | | $198,132 | | | $200,812 | |
| Average Net Assets for the Period (in thousands) | | $91,479 | | | $107,902 | | | $148,179 | | | $209,016 | | | $196,518 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.02% | | | 1.25% | | | 1.09% | | | 1.18% | | | 0.98% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.02% | | | 1.25% | | | 1.09% | | | 1.18% | | | 0.97% | |
| | Ratio of Net Investment Income/(Loss) | | 0.72% | | | 0.79% | | | 1.07% | | | 0.33% | | | 0.56% | |
| Portfolio Turnover Rate | | 46% | | | 37% | | | 42% | | | 41% | | | 53% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | JUNE 30, 2021 |
Janus Henderson Mid Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $13.12 | | | $15.14 | | | $16.78 | | | $17.45 | | | $16.44 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.16 | | | 0.16 | | | 0.20 | | | 0.10 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 4.66 | | | (1.80) | | | 0.12 | | | 1.18 | | | 2.58 | |
| Total from Investment Operations | | 4.82 | | | (1.64) | | | 0.32 | | | 1.28 | | | 2.72 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.15) | | | (0.17) | | | (0.06) | | | (0.13) | |
| | Distributions (from capital gains) | | — | | | (0.23) | | | (1.79) | | | (1.89) | | | (1.58) | |
| Total Dividends and Distributions | | (0.15) | | | (0.38) | | | (1.96) | | | (1.95) | | | (1.71) | |
| Net Asset Value, End of Period | | $17.79 | | | $13.12 | | | $15.14 | | | $16.78 | | | $17.45 | |
| Total Return* | | 36.95% | | | (11.31)% | | | 4.22% | | | 7.31% | | | 17.00% | |
| Net Assets, End of Period (in thousands) | | $1,010,187 | | | $896,622 | | | $1,204,382 | | | $1,431,431 | | | $1,619,550 | |
| Average Net Assets for the Period (in thousands) | | $971,268 | | | $1,089,574 | | | $1,281,003 | | | $1,566,628 | | | $1,709,661 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.77% | | | 0.99% | | | 0.84% | | | 0.92% | | | 0.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.99% | | | 0.83% | | | 0.91% | | | 0.71% | |
| | Ratio of Net Investment Income/(Loss) | | 1.00% | | | 1.09% | | | 1.30% | | | 0.58% | | | 0.82% | |
| Portfolio Turnover Rate | | 46% | | | 37% | | | 42% | | | 41% | | | 53% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Mid Cap Value Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks capital appreciation. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class L Shares are designed for pension and profit-sharing plans, employee benefit trusts, endowments, foundations and corporations, as well as high net worth individuals and financial intermediaries who are willing to maintain a minimum account balance of $250,000.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with US GAAP.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States.
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
ING Financial Markets LLC | $ | 23,500,000 | $ | — | $ | (23,500,000) | $ | — |
Royal Bank of Canada, NY Branch | | 50,000,000 | | — | | (50,000,000) | | — |
| | | | | | | | | |
Total | $ | 73,500,000 | $ | — | $ | (73,500,000) | $ | — |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
All repurchase agreements are transacted under legally enforceable master repurchase agreements that give the Fund, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the counterparty. For financial reporting purposes, the Fund does not offset financial instruments' payables and receivables and related collateral on the Statement of Assets and Liabilities. Repurchase agreements held by the Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest.
Real Estate Investing
The Fund may invest 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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Repurchase Agreements
The Fund and other funds advised by Janus Capital or its affiliates may transfer daily uninvested cash balances into one or more joint trading accounts. Assets in the joint trading accounts are invested in money market instruments and the proceeds are allocated to the participating funds on a pro rata basis.
Repurchase agreements held by the Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee rate that may adjust up or down based on the Fund’s performance relative to its benchmark index.
The investment advisory fee rate paid to Janus Capital by the Fund consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (the “Base Fee Rate”), plus or minus (2) a performance-fee adjustment (the “Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets based on the Fund’s relative performance compared to the cumulative investment record of its benchmark index over a 36-month performance measurement period or shorter time period, as applicable. The investment advisory fee rate is calculated daily and paid monthly.
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. The Fund’s Base Fee Rate prior to any performance adjustment (expressed as an annual rate) is 0.64%, and the Fund’s benchmark index used in the calculation is the Russell Midcap® Value Index.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index, up to the Fund’s full performance rate of ±4.00%. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index.
The Fund’s prospectuses and statement(s) of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statement of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment. For the year ended June 30, 2021, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.49%.
Perkins Investment Management LLC (“Perkins”) previously served as subadviser to the Fund. Effective April 30, 2021, the subadvisory agreement between Janus Capital and Perkins on behalf of the Fund was terminated.
Prior to April 30, 2021, Janus Capital paid Perkins a subadvisory fee equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (calculated after any applicable performance fee adjustment, fee waivers, and expense reimbursements). The subadvisory fee paid by Janus Capital to Perkins adjusts up or down based on the Fund’s performance relative to the Fund’s benchmark index over the performance measurement period.
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.83% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class R Shares, Class S Shares, and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class R Shares, Class S Shares, and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative fee based on the average daily net assets Class L Shares of the Fund based on the average proportion of the Fund’s total net assets sold directly and the average proportion of the Fund’s net assets sold through financial intermediaries on a monthly basis. The asset-weighted fee is calculated by applying a blended annual fee rate of 0.12% on average net assets for the proportion of assets sold directly and 0.25% on average net assets for the proportion of assets sold through financial intermediaries. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations. Janus Services has agreed to waive all or a portion of this fee. Such waiver is voluntary and could change or be terminated at any time at the discretion of Janus Services or Janus Capital without prior notification to shareholders. Removal of this fee waiver may have a significant impact on Class L Shares’ total expense ratio. If applicable, amounts waived to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, of up to 0.50% of the Class R Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $5,900.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $1,082.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by Janus Capital in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the year ended June 30, 2021, the Fund engaged in cross trades amounting to $18,246,573 in purchases and $302,889 in sales, resulting in a net realized loss of $5,020. The net realized loss is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ - | $ 139,188,135 | $ - | $ - | $ - | $ (36,278) | $855,624,907 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 2,006,277,685 | $870,740,632 | $(15,115,725) | $ 855,624,907 |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 28,185,987 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 31,712,153 | $ 46,888,682 | $ - | $ - | |
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ 13,988,829 | $ (4,774,587) | $ (9,214,242) |
Capital has been adjusted by $13,988,829, including $13,024,846 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 914,433 | $ 14,312,575 | | 1,272,842 | $ 18,917,607 |
Reinvested dividends and distributions | 25,855 | 405,408 | | 81,893 | 1,334,034 |
Shares repurchased | (1,339,171) | (21,036,887) | | (1,781,200) | (26,225,953) |
Net Increase/(Decrease) | (398,883) | $ (6,318,904) | | (426,465) | $ (5,974,312) |
Class C Shares: | | | | | |
Shares sold | 88,738 | $ 1,377,369 | | 150,011 | $ 2,142,885 |
Reinvested dividends and distributions | 190 | 2,911 | | 20,260 | 322,134 |
Shares repurchased | (714,010) | (10,823,793) | | (1,057,463) | (15,308,954) |
Net Increase/(Decrease) | (625,082) | $ (9,443,513) | | (887,192) | $ (12,843,935) |
Class D Shares: | | | | | |
Shares sold | 2,934,366 | $ 49,582,875 | | 1,720,896 | $ 24,092,028 |
Reinvested dividends and distributions | 467,826 | 7,181,129 | | 1,172,678 | 18,704,221 |
Shares repurchased | (8,040,617) | (122,191,051) | | (6,445,454) | (91,445,916) |
Net Increase/(Decrease) | (4,638,425) | $ (65,427,047) | | (3,551,880) | $ (48,649,667) |
Class I Shares: | | | | | |
Shares sold | 3,917,206 | $ 61,140,888 | | 7,616,691 | $ 106,655,485 |
Reinvested dividends and distributions | 233,943 | 3,598,047 | | 550,430 | 8,795,870 |
Shares repurchased | (7,638,969) | (117,647,582) | | (8,545,806) | (123,259,879) |
Net Increase/(Decrease) | (3,487,820) | $ (52,908,647) | | (378,685) | $ (7,808,524) |
Class L Shares: | | | | | |
Shares sold | 1,982 | $ 34,914 | | 6,458 | $ 93,316 |
Reinvested dividends and distributions | 3,025 | 48,009 | | 7,990 | 131,756 |
Shares repurchased | (45,799) | (727,335) | | (88,995) | (1,329,590) |
Net Increase/(Decrease) | (40,792) | $ (644,412) | | (74,547) | $ (1,104,518) |
Class N Shares: | | | | | |
Shares sold | 4,917,180 | $ 73,907,552 | | 11,153,046 | $ 145,848,219 |
Reinvested dividends and distributions | 373,511 | 5,710,977 | | 1,017,680 | 16,170,934 |
Shares repurchased | (9,096,876) | (142,949,867) | | (20,957,658) | (292,090,625) |
Net Increase/(Decrease) | (3,806,185) | $ (63,331,338) | | (8,786,932) | $(130,071,472) |
Class R Shares: | | | | | |
Shares sold | 440,536 | $ 6,832,838 | | 615,349 | $ 8,811,940 |
Reinvested dividends and distributions | 12,116 | 186,831 | | 57,539 | 921,770 |
Shares repurchased | (904,025) | (13,662,936) | | (1,429,475) | (20,761,311) |
Net Increase/(Decrease) | (451,373) | $ (6,643,267) | | (756,587) | $ (11,027,601) |
Class S Shares: | | | | | |
Shares sold | 1,193,408 | $ 19,635,165 | | 2,956,785 | $ 43,644,906 |
Reinvested dividends and distributions | 36,903 | 579,012 | | 144,442 | 2,352,954 |
Shares repurchased | (3,281,247) | (48,722,504) | | (2,838,735) | (41,317,993) |
Net Increase/(Decrease) | (2,050,936) | $ (28,508,327) | | 262,492 | $ 4,679,867 |
Class T Shares: | | | | | |
Shares sold | 4,080,100 | $ 62,957,326 | | 3,977,213 | $ 56,561,096 |
Reinvested dividends and distributions | 616,223 | 9,526,809 | | 1,713,278 | 27,515,249 |
Shares repurchased | (16,267,356) | (252,003,261) | | (16,894,662) | (241,545,090) |
Net Increase/(Decrease) | (11,571,033) | $(179,519,126) | | (11,204,171) | $(157,468,745) |
Janus Henderson Mid Cap Value Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$1,189,371,554 | $1,585,282,602 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund's financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Mid Cap Value Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Mid Cap Value Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Mid Cap Value Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the “Fund”) as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Mid Cap Value Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Mid Cap Value Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Mid Cap Value Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Mid Cap Value Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Mid Cap Value Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Capital Gain Distributions | $13,024,846 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 100% |
Janus Henderson Mid Cap Value Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Mid Cap Value Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Mid Cap Value Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Mid Cap Value Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Mid Cap Value Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Mid Cap Value Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Mid Cap Value Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
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Janus Henderson Mid Cap Value Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Mid Cap Value Fund
Notes
NotesPage1
Janus Henderson Mid Cap Value Fund
Notes
NotesPage2
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93032 08-21 |
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| | | ANNUAL REPORT June 30, 2021 |
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| | Janus Henderson Money Market Fund |
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| | Janus Investment Fund |
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Table of Contents
Janus Henderson Money Market Fund
Janus Henderson Money Market Fund (unaudited)
Performance
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| | | | 
David Spilsted co-portfolio manager | 
Garrett Strum co-portfolio manager |
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Average Annual Total Return | | Seven-Day Current Yield | |
For the periods ended June 30, 2021 | | | Class D Shares | | |
Class D Shares | | | With Reimbursement | 0.00% | |
1 Year | 0.00% | | Without Reimbursement | 0.00% | |
5 Year | 0.78% | | Class T Shares | | |
10 Year | 0.39% | | With Reimbursement | 0.00% | |
Since Inception (February 14, 1995) | 2.11% | | Without Reimbursement | 0.00% | |
Class T Shares | | | Expense Ratios | |
1 Year | 0.00% | | Per the October 28, 2020 prospectuses | | |
5 Year | 0.74% | | Class D Shares | | |
10 Year | 0.37% | | Total Annual Fund Operating Expenses | 0.62% | |
Since Inception (February 14, 1995) | 2.11% | | Class T Shares | | |
| | | Total Annual Fund Operating Expenses | 0.65% | |
| | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Returns include reinvestment of all dividends and distributions.
The yield more closely reflects the current earnings of the money market fund than the total return.
Class D Shares of the Fund commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
If Class D Shares of the Fund had been available during periods prior to February 16, 2010, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
See “Useful Information About Your Fund Report.”
See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Money Market Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in either share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class D Shares | $1,000.00 | $1,000.00 | $0.50 | | $1,000.00 | $1,024.30 | $0.50 | 0.10% |
Class T Shares | $1,000.00 | $1,000.00 | $0.50 | | $1,000.00 | $1,024.30 | $0.50 | 0.10% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Money Market Fund
Schedule of Investments
June 30, 2021
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Principal Amounts
| | | Value | |
Certificates of Deposit– 10.7% | | | |
| | Bank of Montreal/Chicago IL, 0.0900%, 9/15/21 | | $20,000,000 | | | $20,000,000 | |
| | Canadian Imperial Bank of Commerce/New York NY, 0.1200%, 7/13/21 | | 20,000,000 | | | 20,000,000 | |
| | Canadian Imperial Bank of Commerce/New York NY, 0.0500%, 8/12/21 | | 15,000,000 | | | 15,000,000 | |
| | Commonwealth Bank of Australia/New York NY, 0.0700%, 9/2/21 | | 25,000,000 | | | 25,000,000 | |
| | Cooperatieve Rabobank UA/NY, 0.1400%, 7/19/21 | | 20,000,000 | | | 20,000,000 | |
| | Sumitomo Mitsui Banking Corp/New York, 0.0500%, 7/8/21 | | 25,000,000 | | | 25,000,000 | |
Total Certificates of Deposit (cost $125,000,000) | | 125,000,000 | |
Commercial Paper– 37.7% | | | |
| | Atlantic Asset Securitizaton LLC, 0.0710%, 7/1/21 (Section 4(2)) | | 15,000,000 | | | 15,000,000 | |
| | Atlantic Asset Securitizaton LLC, 0.0761%, 7/20/21 (Section 4(2)) | | 20,000,000 | | | 19,999,208 | |
| | Australia & New Zeland Banking Group Ltd, 0.1116%, 8/4/21 (Section 4(2)) | | 20,000,000 | | | 19,997,922 | |
| | Australia & New Zeland Banking Group Ltd, 0.1319%, 9/1/21 (Section 4(2)) | | 25,000,000 | | | 24,994,402 | |
| | BNP Paribas New York Branch, 0.1218%, 8/2/21 | | 25,000,000 | | | 24,997,333 | |
| | BNP Paribas New York Branch, 0.1218%, 8/9/21 | | 25,000,000 | | | 24,996,750 | |
| | Manhattan Asset Funding Co LLC, 0.0507%, 7/15/21 (Section 4(2)) | | 15,000,000 | | | 14,999,708 | |
| | Manhattan Asset Funding Co LLC, 0.0811%, 7/26/21 (Section 4(2)) | | 25,000,000 | | | 24,998,611 | |
| | Nieuw Amsterdam Receivables Corp BV, 0.1319%, 9/2/21 (Section 4(2)) | | 15,000,000 | | | 14,996,587 | |
| | Nieuw Amsterdam Receivables Corp BV, 0.1319%, 9/10/21 (Section 4(2)) | | 25,000,000 | | | 24,993,590 | |
| | Societe Generale SA, 0.0800%, 7/1/21 (Section 4(2)) | | 25,000,000 | | | 25,000,000 | |
| | Societe Generale SA, 0.0558%, 7/2/21 (Section 4(2)) | | 10,000,000 | | | 9,999,985 | |
| | Svenska Handelsbanken AB, 0.1624%, 8/17/21 (Section 4(2)) | | 25,000,000 | | | 24,994,776 | |
| | Svenska Handelsbanken AB, 0.1624%, 8/19/21 (Section 4(2)) | | 25,000,000 | | | 24,994,554 | |
| | Swedbank AB, 0.0761%, 9/2/21 | | 25,000,000 | | | 24,996,719 | |
| | Swedbank AB, 0.1167%, 10/20/21 | | 20,000,000 | | | 19,992,908 | |
| | Toronto-Dominion Bank/The, 0.1421%, 8/6/21 (Section 4(2)) | | 25,000,000 | | | 24,996,499 | |
| | Toronto-Dominion Bank/The, 0.1015%, 9/24/21 (Section 4(2)) | | 25,000,000 | | | 24,994,097 | |
| | Victory Receivables Corp, 0.0710%, 7/1/21 (Section 4(2)) | | 50,000,000 | | | 50,000,000 | |
Total Commercial Paper (cost $439,943,649) | | 439,943,649 | |
U.S. Government Agency Notes– 5.2% | | | |
Federal Home Loan Bank Discount Notes: | | | |
| | 0.0168%, 7/14/21 | | 10,000,000 | | | 9,999,939 | |
| | 0.0150%, 7/28/21 | | 10,000,000 | | | 9,999,887 | |
| | 0.0117%, 8/18/21 | | 20,000,000 | | | 19,999,687 | |
| | 0.0150%, 8/25/21 | | 10,000,000 | | | 9,999,771 | |
| | 0.0247%, 9/15/21 | | 10,000,000 | | | 9,999,478 | |
Total U.S. Government Agency Notes (cost $59,998,762) | | 59,998,762 | |
U.S. Treasury Debt– 2.6% | | | |
| | United States Treasury Bill, 0.0060%, 7/1/21 | | 10,000,000 | | | 10,000,000 | |
| | United States Treasury Bill, 0.0136%, 7/29/21 | | 10,000,000 | | | 9,999,903 | |
| | United States Treasury Bill, 0.0483%, 8/5/21 | | 10,000,000 | | | 9,999,563 | |
Total U.S. Treasury Debt (cost $29,999,466) | | 29,999,466 | |
Variable Rate Demand Notes¶– 15.2% | | | |
| | Bellevue 10 Apartments LLC (LOC: Northern Trust Company), 0.1700%, 4/1/60 | | 3,450,000 | | | 3,450,000 | |
| | Breckenridge Terrace LLC (LOC: Bank of America NA), 0.1800%, 5/2/39 | | 14,980,000 | | | 14,980,000 | |
| | Breckenridge Terrace LLC (LOC: Bank of America NA), 0.1800%, 5/2/39 | | 4,000,000 | | | 4,000,000 | |
| | Cellmark Inc (LOC: Swedbank AB NY), 0.1200%, 6/1/38 | | 10,000,000 | | | 10,000,000 | |
| | CG-USA Simi Valley LP (LOC: FHLB San Francisco), 0.1200%, 10/1/60 | | 6,900,000 | | | 6,900,000 | |
| | County of Eagle CO (LOC: Bank of America NA), 0.1800%, 6/1/27 | | 9,100,000 | | | 9,100,000 | |
| | County of Eagle CO (LOC: Bank of America NA), 0.1800%, 5/2/39 | | 8,000,000 | | | 8,000,000 | |
| | Dorfman 2020 Family (LOC: FHLB of Dallas), 0.1200%, 8/1/40 | | 5,285,000 | | | 5,285,000 | |
| | Encinitas Senior Living LP (LOC: FHLB San Francisco), 0.1200%, 8/1/59 | | 3,370,000 | | | 3,370,000 | |
| | Griffin-Spalding County Development Authority (LOC: Bank of America NA), | | | | | | |
| | 0.1200%, 8/1/28 | | 3,750,000 | | | 3,750,000 | |
| | Jefferson Vista Canyon LLC (LOC: Comerica Bank), 0.2000%, 12/2/58 | | 14,555,000 | | | 14,555,000 | |
| | Lodi LV Loca LP (LOC: FHLB San Francisco), 0.1200%, 8/1/59 | | 6,000,000 | | | 6,000,000 | |
| | Michael Dennis Sullivan Irrevocable Trust (LOC: Wells Fargo Bank NA), | | | | | | |
| | 0.1200%, 11/1/39 | | 11,375,000 | | | 11,375,000 | |
| | Mississippi Business Finance Corp (LOC: FHLB Dallas), 0.2200%, 12/1/35 | | 4,625,000 | | | 4,625,000 | |
| | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 3 |
Janus Henderson Money Market Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Principal Amounts
| | | Value | |
Variable Rate Demand Notes¶– (continued) | | | |
| | Phoenix Realty Special Account-U LP (LOC: Northern Trust Company), | | | | | | |
| | 0.3000%, 4/1/25 | | $1,675,000 | | | $1,675,000 | |
| | SSAB AB (LOC: Swedbank AB NY), 0.1200%, 4/1/34 | | 30,000,000 | | | 30,000,000 | |
| | SSAB AB (LOC: Credit Agricole Corporate and Investment Bank), | | | | | | |
| | 0.1200%, 5/1/34 | | 20,000,000 | | | 20,000,000 | |
| | Steel Dust Recycling LLC (LOC: Comerica Bank), 0.1500%, 5/1/46 | | 13,875,000 | | | 13,875,000 | |
| | Tenderfoot Seasonal Housing LLC (LOC: Bank of America NA), 0.1800%, 7/2/35 | | 5,700,000 | | | 5,700,000 | |
Total Variable Rate Demand Notes (cost $176,640,000) | | 176,640,000 | |
Repurchase Agreementsë– 28.7% | | | |
| | Credit Agricole, New York, Joint repurchase agreement, 0.0500%, dated 6/30/21, maturing 7/1/21 to be repurchased at $5,000,007 collateralized by $4,546,231 in U.S. Treasuries 0.5000%, 1/15/28 with a value of $5,100,020 | | 5,000,000 | | | 5,000,000 | |
| | Goldman Sachs & Co., Joint repurchase agreement, 0.0500%, dated 6/30/21, maturing 7/1/21 to be repurchased at $35,000,049 collateralized by $34,941,318 in U.S. Government Agencies 0.6934% - 3.4580%, 10/16/48 - 5/16/53 with a value of $35,700,000 | | 35,000,000 | | | 35,000,000 | |
| | HSBC Securities (USA), Inc, Joint repurchase agreement, 0.0400%, dated 6/30/21, maturing 7/1/21 to be repurchased at $35,000,039 collateralized by $45,278,156 in U.S. Treasuries 0% - 7.2500%, 6/30/22 - 11/15/49 with a value of $35,700,000 | | 35,000,000 | | | 35,000,000 | |
| | ING Financial Markets LLC, Joint repurchase agreement, 0.0300%, dated 6/30/21, maturing 7/1/21 to be repurchased at $60,000,050 collateralized by $59,610,086 in U.S. Treasuries 0% - 2.8750%, 10/7/21 - 2/15/45 with a value of $61,200,056 | | 60,000,000 | | | 60,000,000 | |
| | ING Financial Markets LLC, Joint repurchase agreement, 0.0400%, dated 6/30/21, maturing 7/1/21 to be repurchased at $55,000,061 collateralized by $54,147,169 in U.S. Government Agencies 1.5000% - 4.5000%, 9/1/29 - 1/1/57 with a value of $56,100,062 | | 55,000,000 | | | 55,000,000 | |
| | Royal Bank of Canada, NY Branch, Joint repurchase agreement, 0.0500%, dated 6/30/21, maturing 7/1/21 to be repurchased at $85,000,118 collateralized by $10,405,551 in U.S. Government Agencies 2.5000% - 7.2500%, 6/15/24 - 3/20/51 and $75,403,075 in U.S. Treasuries 0.1250% - 0.3750%, 9/30/22 - 4/15/24 with a value of $86,700,120 | | 85,000,000 | | | 85,000,000 | |
| | Wells Fargo Securities LLC, Joint repurchase agreement, 0.0600%, dated 6/30/21, maturing 7/1/21 to be repurchased at $60,000,100 collateralized by $57,733,560 in U.S. Government Agencies 2.0000% - 4.5000%, 11/1/35 - 2/1/51 with a value of $61,200,102 | | 60,000,000 | | | 60,000,000 | |
Total Repurchase Agreements (cost $335,000,000) | | 335,000,000 | |
Total Investments (total cost $1,166,581,877) – 100.1% | | 1,166,581,877 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | | (844,358) | |
Net Assets – 100% | | $1,165,737,519 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
4 | JUNE 30, 2021 |
Janus Henderson Money Market Fund
Notes to Schedule of Investments and Other Information
| | |
LLC | Limited Liability Company |
LOC | Letter of Credit |
LP | Limited Partnership |
Money market funds may hold securities with stated maturities of greater than 397 days when those securities have features that allow a fund to “put” back the security to the issuer or to a third party within 397 days of acquisition. The maturity dates shown in the security descriptions are the stated maturity dates.
| | |
4(2) | Securities sold under Section 4(2) of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 4(2) securities as of the year ended June 30, 2021 is $344,959,939, which represents 29.6% of net assets. |
| | |
¶ | Variable rate demand notes are not based on a published reference rate and spread; they are determined by the issuer or remarketing agent and current market conditions. The reference rate in the security description is as of June 30, 2021. |
| | |
ë | The Fund may have elements of risk due to concentration of investments. Such concentrations may subject the Fund to additional risks. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Certificates of Deposit | $ | - | $ | 125,000,000 | $ | - |
Commercial Paper | | - | | 439,943,649 | | - |
U.S. Government Agency Notes | | - | | 59,998,762 | | - |
U.S. Treasury Debt | | - | | 29,999,466 | | - |
Variable Rate Demand Notes | | - | | 176,640,000 | | - |
Repurchase Agreements | | - | | 335,000,000 | | - |
Total Assets | $ | - | $ | 1,166,581,877 | $ | - |
| | | | | | | |
Janus Henderson Money Market Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Investments, at value (cost $831,581,877) | | $ | 831,581,877 | |
| Repurchase agreements, at value (cost $335,000,000) | | | 335,000,000 | |
| Cash | | | 239,053 | |
| Non-interested Trustees' deferred compensation | | | 28,411 | |
| Receivables: | | | | |
| | Fund shares sold | | | 1,630,985 | |
| | Interest | | | 51,829 | |
Total Assets | | | 1,168,532,155 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 2,652,283 | |
| | Advisory fees | | | 71,777 | |
| | Professional fees | | | 36,568 | |
| | Non-interested Trustees' deferred compensation fees | | | 28,411 | |
| | Non-interested Trustees' fees and expenses | | | 4,801 | |
| | Dividends | | | 796 | |
Total Liabilities | | | 2,794,636 | |
Net Assets | | $ | 1,165,737,519 | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,165,749,869 | |
| Total distributable earnings (loss) | | | (12,350) | |
Total Net Assets | | $ | 1,165,737,519 | |
Net Assets - Class D Shares | | $ | 1,149,942,257 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,149,957,835 | |
Net Asset Value Per Share | | $ | 1.00 | |
Net Assets - Class T Shares | | $ | 15,795,262 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 15,803,414 | |
Net Asset Value Per Share | | $ | 1.00 | |
| | |
See Notes to Financial Statements. |
| |
6 | JUNE 30, 2021 |
Janus Henderson Money Market Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Interest | $ | 1,593,940 | |
| Other income | | 235 | |
Total Investment Income | | 1,594,175 | |
Expenses: | | | |
| Advisory fees | | 2,434,156 | |
| Administration services fees: | | | |
| | Class D Shares | | 4,330,340 | |
| | Class T Shares | | 53,981 | |
| Professional fees | | 45,094 | |
| Non-interested Trustees’ fees and expenses | | 21,270 | |
Total Expenses | | 6,884,841 | |
Less: Excess Expense Reimbursement and Waivers | | (5,304,621) | |
Net Expenses | | 1,580,220 | |
Net Investment Income/(Loss) | | 13,955 | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | | 810 | |
Total Net Realized Gain/(Loss) on Investments | | 810 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 14,765 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Money Market Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 13,955 | | $ | 10,034,284 | |
| Net realized gain/(loss) on investments | | 810 | | | (14) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 14,765 | | | 10,034,270 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class D Shares | | (13,775) | | | (9,899,556) | |
| | Class T Shares | | (179) | | | (134,726) | |
Net Decrease from Dividends and Distributions to Shareholders | | (13,954) | | | (10,034,282) | |
Capital Share Transactions: | | | | | | |
| | Class D Shares | | (5,234,716) | | | 244,309,923 | |
| | Class T Shares | | 2,637,118 | | | 1,113,599 | |
Net Increase/(Decrease) from Capital Share Transactions | | (2,597,598) | | | 245,423,522 | |
Net Increase/(Decrease) in Net Assets | | (2,596,787) | | | 245,423,510 | |
Net Assets: | | | | | | |
| Beginning of period | | 1,168,334,306 | | | 922,910,796 | |
| End of period | $ | 1,165,737,519 | | $ | 1,168,334,306 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Money Market Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | —(2) | | | 0.01 | | | 0.02 | | | 0.01 | | | —(2) | |
| | Net realized and unrealized gain/(loss)(2) | | — | | | — | | | — | | | — | | | — | |
| Total from Investment Operations | | — | | | 0.01 | | | 0.02 | | | 0.01 | | | — | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | —(2) | | | (0.01) | | | (0.02) | | | (0.01) | | | —(2) | |
| Total Dividends and Distributions | | — | | | (0.01) | | | (0.02) | | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | |
| Total Return* | | 0.00% | | | 1.05% | | | 1.80% | | | 0.92% | | | 0.16% | |
| Net Assets, End of Period (in thousands) | | $1,149,942 | | | $1,155,176 | | | $910,866 | | | $840,396 | | | $865,718 | |
| Average Net Assets for the Period (in thousands) | | $1,202,890 | | | $1,006,448 | | | $886,310 | | | $852,513 | | | $907,340 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.57% | | | 0.62% | | | 0.67% | | | 0.67% | | | 0.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.13% | | | 0.53% | | | 0.57% | | | 0.57% | | | 0.57% | |
| | Ratio of Net Investment Income/(Loss) | | 0.00%(3) | | | 0.98% | | | 1.79% | | | 0.91% | | | 0.15% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | —(2) | | | 0.01 | | | 0.02 | | | 0.01 | | | —(2) | |
| | Net realized and unrealized gain/(loss)(2) | | — | | | — | | | — | | | — | | | — | |
| Total from Investment Operations | | — | | | 0.01 | | | 0.02 | | | 0.01 | | | — | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | —(2) | | | (0.01) | | | (0.02) | | | (0.01) | | | —(2) | |
| Total Dividends and Distributions | | — | | | (0.01) | | | (0.02) | | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | |
| Total Return* | | 0.00% | | | 1.03% | | | 1.79% | | | 0.89% | | | 0.02% | |
| Net Assets, End of Period (in thousands) | | $15,795 | | | $13,158 | | | $12,045 | | | $12,467 | | | $13,763 | |
| Average Net Assets for the Period (in thousands) | | $14,191 | | | $13,238 | | | $11,795 | | | $13,647 | | | $56,389 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.59% | | | 0.65% | | | 0.69% | | | 0.69% | | | 0.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.13% | | | 0.55% | | | 0.59% | | | 0.59% | | | 0.56% | |
| | Ratio of Net Investment Income/(Loss) | | 0.00%(3) | | | 1.02% | | | 1.76% | | | 0.87% | | | 0.01% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. (3) Less than 0.005%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Money Market Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Money Market Fund (the “Fund”) is a series fund. The Fund is part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 Funds which include multiple series of shares, with differing investment objectives and policies. The Fund seeks capital preservation and liquidity with current income as a secondary objective.
The Fund offers two classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer both classes of shares.
The Fund is classified as a “retail money market fund,” as such term is defined in or interpreted under the rules governing money market funds. A retail money market fund is a money market fund that has policies and procedures reasonably designed to limit all beneficial owners of the Fund to natural persons, which means that the Fund’s Shares can only be held through individual investors. In order to make an initial investment in the Fund, the Fund requires that a shareholder provide certain information (e.g., Social Security number or government-issued identification) that confirms your eligibility to invest in the Fund. Accounts that are not beneficially owned by natural persons, such as business and limited liability company accounts, charitable or financial organizations, and corporate and S-Corp accounts, are not eligible to invest in the Fund, and will be involuntarily redeemed from the Fund after having been provided sufficient notice.
As a retail money market fund, the Fund may be subject to liquidity fees and/or redemption gates on fund redemptions if the Fund’s liquidity falls below required minimums because of market conditions or other factors. Liquidity fees and redemption gates are most likely to be imposed during times of extraordinary market stress. Pursuant to Rule 2a-7 under the 1940 Act, the Trustees are permitted to impose a liquidity fee on redemptions from the Fund (up to 2%) or a redemption gate to temporarily restrict redemptions from the Fund for up to 10 business days (in any 90-day period) in the event that the Fund’s weekly liquid assets fall below certain designated thresholds.
If the Fund’s weekly liquid assets fall below 30% of the Fund’s total assets, the Trustees are permitted, but not required, to (i) impose a liquidity fee of no more than 2% of the amount redeemed and/or (ii) impose a redemption gate to temporarily suspend the right of redemption. If the Fund’s weekly liquid assets fall below 10% of the Fund’s total assets, the Fund will impose, generally as of the beginning of the next business day, a liquidity fee of 1% of the amount redeemed unless the Trustees determine that such a fee would not be in the best interests of the Fund or determines that a lower or higher fee (subject to the 2% limit) would be in the best interests of the Fund. A liquidity fee or redemption gate may be imposed as early as the same day that the Fund's weekly liquid assets fall below the 30% or 10% thresholds.
Shareholders, including individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus Henderson funds. Class D Shares are available only to investors who hold accounts directly with the Janus Henderson funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (“Janus Capital”) or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with US GAAP.
Janus Henderson Money Market Fund
Notes to Financial Statements
Liquidity
The Fund has adopted liquidity requirements (measured at the time of purchase) as noted:
The Fund will limit its investments in illiquid securities to 5% or less of its total assets.
Daily liquidity. The Fund will invest at least 10% of its total assets in “daily liquid assets,” which generally include cash (including demand deposits), direct obligations of the U.S. Government, securities (including repurchase agreements) that will mature or are subject to a demand feature that is exercisable and payable within one business day, and/or amounts receivable and due unconditionally within one business day on pending sales of portfolio securities.
Weekly liquidity. The Fund will invest at least 30% of its assets in “weekly liquid assets,” which generally include cash (including demand deposits), direct obligations of the U.S. Government, agency discount notes with remaining maturities of 60 days or less, and securities (including repurchase agreements) that will mature or are subject to a demand feature that is exercisable and payable within five business days.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Investments held by the Fund are valued utilizing the amortized cost method of valuation permitted in accordance with Rule 2a-7 under the 1940 Act and certain conditions therein. Under the amortized cost method, which does not take into account unrealized capital gains or losses, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization to maturity of any discount or premium.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE.
Periodic review and monitoring of the valuation of short-term securities is performed in an effort to ensure that amortized cost approximates market value. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
Janus Henderson Money Market Fund
Notes to Financial Statements
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Dividends and Distributions
Dividends, if any, are declared daily and distributed monthly for the Fund. Realized capital gains, if any, are declared and distributed in December. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or the Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the
Janus Henderson Money Market Fund
Notes to Financial Statements
financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through its investments in certain securities, including, but not limited to, repurchase agreements and debt securities. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the
Janus Henderson Money Market Fund
Notes to Financial Statements
Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
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Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Credit Agricole, New York | $ | 5,000,000 | $ | — | $ | (5,000,000) | $ | — |
Goldman Sachs & Co. | | 35,000,000 | | — | | (35,000,000) | | — |
HSBC Securities (USA), Inc | | 35,000,000 | | — | | (35,000,000) | | — |
ING Financial Markets LLC | | 115,000,000 | | — | | (115,000,000) | | — |
Royal Bank of Canada, NY Branch | | 85,000,000 | | — | | (85,000,000) | | — |
Wells Fargo Securities LLC | | 60,000,000 | | — | | (60,000,000) | | — |
| | | | | | | | | |
Total | $ | 335,000,000 | $ | — | $ | (335,000,000) | $ | — |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
All repurchase agreements are transacted under legally enforceable master repurchase agreements that give the Fund, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the counterparty. For financial reporting purposes, the Fund does not offset financial instruments' payables and receivables and related collateral on the Statement of Assets and Liabilities. Repurchase agreements held by the Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest.
Repurchase Agreements
The Fund and other funds advised by Janus Capital or its affiliates may transfer daily uninvested cash balances into one or more joint trading accounts. Assets in the joint trading accounts are invested in money market instruments and the proceeds are allocated to the participating funds on a pro rata basis.
Repurchase agreements held by the Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings.
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt
Janus Henderson Money Market Fund
Notes to Financial Statements
of less developed countries, 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 debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including, but not limited to, 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 debtor’s 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 debtor’s ability or willingness to timely service its debts. The 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 Fund’s 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 Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
Variable and Floating Rate Notes
The Fund also may purchase variable and floating rate demand notes of corporations and other entities, which are unsecured obligations redeemable upon not more than 30 days’ notice. The Fund may purchase variable and floating rate demand notes of U.S. Government issuers or commercial banks. These obligations include master demand notes that permit investment of fluctuating amounts at varying rates of interest pursuant to direct arrangements with the issuer of the instrument. The issuer of these obligations often has the right, after a given period, to prepay the outstanding principal amount of the obligations upon a specified number of days’ notice. These obligations generally are not traded, nor generally is there an established secondary market for these obligations. To the extent a demand note does not have a seven day or shorter demand feature and there is no readily available market for the obligation, it is treated as an illiquid investment. The rate of interest on securities purchased by the Fund may be tied to short-term Treasury or other government securities or indices on securities that are permissible investments of the Fund, as well as other money market rates of interest. The Fund will not purchase securities whose values are tied to interest rates or indices that are not appropriate for the duration and volatility standards of a money market fund.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.20% of its average daily net assets.
Janus Capital may waive and/or reimburse additional fees to the extent necessary to assist the Fund in attempting to maintain a yield of at least 0.00%. These waivers and reimbursements are voluntary and could change or be terminated at any time at the discretion of Janus Capital. There is no guarantee that the Fund will maintain a positive yield. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statement of Operations.
Class D Shares and Class T Shares of the Fund compensate Janus Capital at an annual rate of 0.36% and 0.38%, respectively, of average daily net assets for providing certain administration services including, but not limited to, oversight and coordination of the Fund’s service providers, recordkeeping and registration functions and also to pay for costs such as shareholder servicing and custody. These amounts are disclosed as “Administration services fees” on the Statement of Operations. A portion of the Fund’s administration fee is paid to BNP Paribas Financial Services ("BPFS"). BPFS provides certain administrative services to the Fund, including services related to Fund accounting, calculation of the Fund’s daily NAV, and Fund audit, tax, and reporting obligations, pursuant to a sub-administration agreement with Janus Capital on behalf of the Fund. Janus Capital does not receive any additional compensation, beyond the administration services fee for serving as administrator.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30,
Janus Henderson Money Market Fund
Notes to Financial Statements
2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 11,439 | $ - | $ - | $ - | $ - | $ (23,789) | $ - | |
During the year ended June 30, 2021, capital loss carryovers of $14 were utilized by the Fund. There are no unused capital loss carryovers
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
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For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 13,954 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 10,034,282 | $ - | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
Janus Henderson Money Market Fund
Notes to Financial Statements
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ 796 | $ - | $ (796) |
Capital has been adjusted by $796, all of which is long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class D Shares: | | | | | |
Shares sold | 750,105,753 | $750,105,752 | | 904,385,223 | $904,385,223 |
Reinvested dividends and distributions | 8,728 | 8,728 | | 9,733,992 | 9,733,992 |
Shares repurchased | (755,349,193) | (755,349,196) | | (669,809,288) | (669,809,292) |
Net Increase/(Decrease) | (5,234,712) | $ (5,234,716) | | 244,309,927 | $244,309,923 |
Class T Shares: | | | | | |
Shares sold | 26,472,033 | $ 26,472,033 | | 23,584,786 | $ 23,584,786 |
Reinvested dividends and distributions | 178 | 178 | | 133,938 | 133,938 |
Shares repurchased | (23,835,093) | (23,835,093) | | (22,605,125) | (22,605,125) |
Net Increase/(Decrease) | 2,637,118 | $ 2,637,118 | | 1,113,599 | $ 1,113,599 |
6. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Money Market Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Money Market Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Money Market Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the “Fund”) as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Money Market Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Monthly Portfolio Holdings
The Fund files its complete holdings in a monthly report on Form N-MFP within 5 business days after each month end. These reports (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees
Janus Henderson Money Market Fund
Additional Information (unaudited)
reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Money Market Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Money Market Fund
Additional Information (unaudited)
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months
Janus Henderson Money Market Fund
Additional Information (unaudited)
ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Money Market Fund
Additional Information (unaudited)
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus
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Additional Information (unaudited)
Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Money Market Fund
Additional Information (unaudited)
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Money Market Fund
Additional Information (unaudited)
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The
Janus Henderson Money Market Fund
Additional Information (unaudited)
Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that,
Janus Henderson Money Market Fund
Additional Information (unaudited)
although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the
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Additional Information (unaudited)
subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Money Market Fund
Useful Information About Your Fund Report (unaudited)
Performance Overviews
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
Janus Henderson Money Market Fund
Useful Information About Your Fund Report (unaudited)
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Money Market Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Section 163(j) Interest Dividend | 76% |
Capital Gain Distributions | $796 |
Janus Henderson Money Market Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Money Market Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Money Market Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Money Market Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Money Market Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Money Market Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Money Market Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
David Spilsted
151 Detroit Street
Denver, CO 80206
DOB: 1963 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Money Market Fund | 7/17-Present | Portfolio Manager for other Janus Henderson accounts and Analyst for Janus Henderson Investors. |
Garrett Strum
151 Detroit Street
Denver, CO 80206
DOB: 1981 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Money Market Fund | 5/17-Present | Portfolio Manager for other Janus Henderson accounts and Analyst for Janus Henderson Investors. |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
Janus Henderson Money Market Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93027 08-21 |
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| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson Multi-Sector Income Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Multi-Sector Income Fund
Janus Henderson Multi-Sector Income Fund (unaudited)
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FUND SNAPSHOT This dynamic, multi-sector income fund seeks high, current income with lower volatility than a dedicated high-yield strategy. Our approach leverages a bottom-up, fundamentally driven process that focuses on identifying the best risk-adjusted opportunities across fixed income sectors. | | | 
John Kerschner co-portfolio manager | 
John Lloyd co-portfolio manager | 
Seth Meyer co-portfolio manager |
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PERFORMANCE OVERVIEW
During the one-year period ended June 30, 2021, Janus Henderson Multi-Sector Income Fund’s Class I Shares returned 11.63% compared with an -0.33% return for the Fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.
MARKET ENVIRONMENT
The period began amid economically damaging social distancing measures put in place by governments worldwide to mitigate the spread of COVID-19. However, U.S. credit markets had already begun recovering from their March lows as significant monetary and fiscal stimulus supported the markets and mid-period vaccine developments created optimism around a potential economic reopening in 2021. Indeed, during the second half of the period, vaccines were distributed at a faster-than-expected-rate and cyclical industries rebounded sharply as consumers began to resume aspects of their lifestyles that had previously been restricted.
Strong consumer spending coupled with supply chain issues and the residual effects of monetary and fiscal stimulus measures then brought on concerns of inflation. Yields on longer-term Treasury bonds rose quickly during February and March. However, inflation expectations moderated by period end as certain commodity prices cooled and market participants gravitated toward the Federal Reserve’s (Fed) view that many aspects of inflation should be transitory. Ultimately, Treasuries generated negative returns for the period as the yield on the 10-year note closed June at 1.47%, up from 0.66% a year earlier. Credit markets rallied as the economic outlook improved. All index credit sectors outperformed Treasuries and generated positive total returns except for agency mortgage-backed securities (MBS). High-yield corporates, which are typically more sensitive to an improving economic environment than Treasury moves, generated double-digit gains. Similarly, securitized sectors, including commercial mortgage-backed securities (CMBS) and asset-back securities (ABS), generated positive returns.
PERFORMANCE DISCUSSION
Our favorable view on the U.S. economy and belief that the Fed was likely to remain accommodative led us to maintain our overweight exposure to credit markets broadly, including a material out-of-index position in high yield. We heightened our focus on individual names that we think have the potential to be “rising stars” – securities that, in our view, could see sufficient rating improvement to push them into the investment-grade market in the year ahead.
As the period progressed and credit spreads narrowed, we reduced our exposure to investment-grade corporate bonds to a historic low for the Fund, instead favoring the securitized markets. We actively sought opportunities in CMBS, believing the asset class would continue to provide diversification as well as attractive individual opportunities in specialized sectors set to benefit in a post-pandemic economy. We also added exposure to collateralized loan obligations (CLO) and bank loans.
Our asset allocation decisions proved to be positive contributors. The Fund’s out-of-index allocation to high-yield corporate bonds performed well as the economic outlook continued to improve and investors’ demand for yield remained intact. The Fund’s lower overall duration and shorter-dated bias of our holdings across most credit sectors was also accretive as the yield curve steepened. Security selection within securitized markets such as ABS, CMBS and MBS further aided returns. The Fund’s material underweight in investment-grade corporate credit detracted. Lack of exposure to government-related securities also proved to be a modest headwind
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Janus Henderson Multi-Sector Income Fund (unaudited)
Outlook
We continue to expect strong economic growth, fueled by the combination of excess aggregate consumer savings, fiscal stimulus and pent-up demand. Because strong growth is, broadly, good for company fundamentals, we remain positive on corporate bonds and securitized products.
However, we will continue to monitor valuations closely. The current recovery is happening quickly, and we are mindful that markets can get ahead of themselves, pricing in a smoother recovery than could ultimately materialize. As such, we expect to remain underweight investment-grade corporate bonds and will look to a wide variety of sectors and industries seeking to provide yield and reduce overall portfolio volatility.
We maintain our view that interest rates are more likely to rise than fall in the coming quarters and expect to maintain our relatively low levels of exposure to rising rates. However, the level and pace of any rate rise is likely to be driven by the outlook for inflation. We, and the Fed, expect it will remain moderate but we will closely monitor what we believe are the most likely contributors to sustained inflation – wages and home prices – mindful that significant distortions could apply to both series as consumers and companies navigate their way through the changes COVID-19 has wrought on the economy.
Absent significant data surprises, we think the Fed wants to remain accommodative and will continue to display patience, supporting credit markets broadly over the coming quarter. However, this view is not without risks. Specifically, the market expects the Fed to begin reducing its current pace of bond purchases between the end of this calendar year and the first quarter of the next. Should economic or inflation data cause the Fed to accelerate their timetable, that could raise volatility and put upward pressure on both yields and spreads. As we navigate the improving economic outlook and higher interest rates, we will continue to adhere to our bottom-up, research-driven investment process.
Thank you for investing in Janus Henderson Multi-Sector Income Fund.
Janus Henderson Multi-Sector Income Fund (unaudited)
Fund At A Glance
June 30, 2021
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Fund Profile | | |
30-day Current Yield* | Without
Reimbursement | With
Reimbursement |
Class A Shares NAV | 1.99% | 1.99% |
Class A Shares MOP | 1.90% | 1.90% |
Class C Shares** | 1.21% | 1.21% |
Class D Shares | 2.14% | 2.14% |
Class I Shares | 2.18% | 2.18% |
Class N Shares | 2.28% | 2.28% |
Class S Shares | 1.38% | 1.73% |
Class T Shares | 2.03% | 2.03% |
Weighted Average Maturity | 5.1 Years |
Average Effective Duration*** | 3.2 Years |
* Yield will fluctuate. | | |
** Does not include the 1.00% contingent deferred sales charge. |
*** A theoretical measure of price volatility. | |
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Ratings† Summary - (% of Total Investments) | |
AAA | 7.8% |
AA | 11.8% |
A | 1.5% |
BBB | 10.5% |
BB | 16.5% |
B | 19.0% |
CCC | 5.6% |
CC | 0.1% |
Not Rated | 32.3% |
Equity | 1.4% |
Other | -6.5% |
† Credit ratings provided by Standard & Poor's (S&P), an independent credit rating agency. Credit ratings range from AAA (highest) to D (lowest) based on S&P's measures. Further information on S&P's rating methodology may be found at www.standardandpoors.com. Other rating agencies may rate the same securities differently. Ratings are relative and subjective and are not absolute standards of quality. Credit quality does not remove market risk and is subject to change. "Not Rated" securities are not rated by S&P, but may be rated by other rating agencies and do not necessarily indicate low quality. "Other" includes cash equivalents, equity securities, and certain derivative instruments. |
Significant Areas of Investment - (% of Net Assets)
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Asset Allocation - (% of Net Assets) | |
Asset-Backed/Commercial Mortgage-Backed Securities | | 44.1% | |
Corporate Bonds | | 34.8% | |
Mortgage-Backed Securities | | 17.7% | |
Bank Loans and Mezzanine Loans | | 8.7% | |
Investment Companies | | 6.9% | |
Preferred Stocks | | 1.5% | |
Common Stocks | | 0.4% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.2% | |
Other | | (14.3)% |
| | | 100.0% |
Janus Henderson Multi-Sector Income Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 11.38% | 5.75% | 5.02% | | | 0.92% | 0.92% |
Class A Shares at MOP | | 6.12% | 4.74% | 4.32% | | | | |
Class C Shares at NAV | | 10.58% | 4.96% | 4.25% | | | 1.71% | 1.71% |
Class C Shares at CDSC | | 9.58% | 4.96% | 4.25% | | | | |
Class D Shares | | 11.57% | 5.92% | 5.18% | | | 0.76% | 0.76% |
Class I Shares | | 11.63% | 6.00% | 5.29% | | | 0.70% | 0.70% |
Class N Shares | | 11.85% | 6.07% | 5.33% | | | 0.63% | 0.63% |
Class S Shares | | 11.43% | 5.75% | 4.99% | | | 1.50% | 1.14% |
Class T Shares | | 11.59% | 5.84% | 5.09% | | | 0.86% | 0.86% |
Bloomberg Barclays U.S. Aggregate Bond Index | | -0.33% | 3.03% | 3.39% | | | | |
Morningstar Quartile - Class I Shares | | 1st | 1st | 1st | | | | |
Morningstar Ranking - based on total returns for Multisector Bond Funds | | 73/354 | 42/283 | 19/227 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 4.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different
Janus Henderson Multi-Sector Income Fund (unaudited)
Performance
risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – February 28, 2014
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Multi-Sector Income Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $1,028.20 | $4.27 | | $1,000.00 | $1,020.58 | $4.26 | 0.85% |
Class C Shares | $1,000.00 | $1,023.60 | $7.78 | | $1,000.00 | $1,017.11 | $7.75 | 1.55% |
Class D Shares | $1,000.00 | $1,027.90 | $3.52 | | $1,000.00 | $1,021.32 | $3.51 | 0.70% |
Class I Shares | $1,000.00 | $1,029.20 | $3.22 | | $1,000.00 | $1,021.62 | $3.21 | 0.64% |
Class N Shares | $1,000.00 | $1,029.60 | $2.82 | | $1,000.00 | $1,022.02 | $2.81 | 0.56% |
Class S Shares | $1,000.00 | $1,027.70 | $4.73 | | $1,000.00 | $1,020.13 | $4.71 | 0.94% |
Class T Shares | $1,000.00 | $1,028.50 | $3.92 | | $1,000.00 | $1,020.93 | $3.91 | 0.78% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– 44.1% | | | |
| | Aaset 2019-2 Trust, 6.4130%, 10/16/39 (144A) | | $4,723,808 | | | $3,542,530 | |
| | AB Bsl CLO 1 Ltd 2021-2A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1000%, 0%, 4/15/34 (144A)‡ | | 15,000,000 | | | 15,004,575 | |
| | Affirm Asset Securitization Trust 2020-A, 6.2300%, 2/18/25 (144A) | | 1,000,000 | | | 1,027,115 | |
| | Affirm Asset Securitization Trust 2021-A C, 1.6600%, 8/15/25 (144A) | | 1,200,000 | | | 1,206,017 | |
| | Affirm Asset Securitization Trust 2021-A D, 3.4900%, 8/15/25 (144A) | | 1,000,000 | | | 1,013,002 | |
| | Affirm Asset Securitization Trust 2021-A E, 5.6500%, 8/15/25 (144A) | | 1,010,000 | | | 1,022,311 | |
| | AGL CLO 1 Ltd 2021-10A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1300%, 1.3223%, 4/15/34 (144A)‡ | | 5,000,000 | | | 5,002,620 | |
| | AGL CLO 1 Ltd 2021-10A D, | | | | | | |
| | ICE LIBOR USD 3 Month + 2.9000%, 3.0923%, 4/15/34 (144A)‡ | | 10,000,000 | | | 10,006,250 | |
| | Alaska Airlines 2020-1 Class A Pass Through Trust, 4.8000%, 8/15/27 (144A) | | 7,892,059 | | | 8,731,908 | |
| | Amercian Airlines Inc / AAdvantage Loyalty IP Ltd, 5.5000%, 4/20/26 (144A) | | 5,859,000 | | | 6,203,216 | |
| | Apidos CLO 2013-12A ER, | | | | | | |
| | ICE LIBOR USD 3 Month + 5.4000%, 5.5838%, 4/15/31 (144A)‡ | | 3,150,000 | | | 3,000,378 | |
| | Apidos CLO 2013-15A A1RR, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.0100%, 1.2340%, 4/20/31 (144A)‡ | | 4,209,000 | | | 4,209,577 | |
| | Atrium CDO Corp 12A AR, | | | | | | |
| | ICE LIBOR USD 3 Month + 0.8300%, 1.0138%, 4/22/27 (144A)‡ | | 11,423,924 | | | 11,403,361 | |
| | Avis Budget Rental Car Funding AESOP LLC 2018-2A D, 3.0400%, 3/20/25 (144A) | | 13,000,000 | | | 12,996,955 | |
| | Avis Budget Rental Car Funding AESOP LLC 2019-2A D, 3.0400%, 9/22/25 (144A) | | 5,000,000 | | | 4,977,101 | |
| | Avis Budget Rental Car Funding AESOP LLC 2021-1A D, 3.7100%, 8/20/27 (144A) | | 6,000,000 | | | 5,981,844 | |
| | Barclays Comercial Mortgage Securities LLC 2018-TALL, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4370%, 2.5099%, 3/15/37 (144A)‡ | | 6,010,000 | | | 5,784,361 | |
| | BBCCRE Trust 2015-GTP, 4.7147%, 8/10/33 (144A)‡ | | 200,000 | | | 175,303 | |
| | BCP Trust 2021-330N D, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4920%, 2.5920%, 6/15/38 (144A)‡ | | 10,000,000 | | | 9,926,000 | |
| | Benchmark Mortgage Trust 2020-IG1, 3.3467%, 9/15/43‡ | | 7,100,000 | | | 6,333,816 | |
| | Benchmark Mortgage Trust 2021-B24 XA, 1.2743%, 3/15/54‡,¤ | | 56,580,743 | | | 4,905,635 | |
| | Benefit Street Partners CLO Ltd 2016-10A CRR, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.5000%, 3.6883%, 4/20/34 (144A)‡ | | 6,750,000 | | | 6,739,166 | |
| | Benefit Street Partners CLO Ltd 2016-10A DRR, | | | | | | |
| | ICE LIBOR USD 3 Month + 6.7500%, 6.9383%, 4/20/34 (144A)‡ | | 5,000,000 | | | 4,932,900 | |
| | BlueMountain CLO XXVI Ltd 2016-1A ER, | | | | | | |
| | ICE LIBOR USD 3 Month + 5.5500%, 5.7383%, 4/20/27 (144A)‡ | | 1,000,000 | | | 986,208 | |
| | BlueMountain CLO XXVI Ltd 2019-24A ER, | | | | | | |
| | ICE LIBOR USD 3 Month + 6.8400%, 0%, 4/20/34 (144A)‡ | | 6,500,000 | | | 6,426,212 | |
| | BlueMountain CLO XXVI Ltd 2019-25A D2R, | | | | | | |
| | ICE LIBOR USD 3 Month + 4.1500%, 0%, 7/15/36 (144A)‡ | | 6,250,000 | | | 6,250,000 | |
| | BlueMountain CLO XXVI Ltd 2019-25A ER, | | | | | | |
| | ICE LIBOR USD 3 Month + 7.2500%, 0%, 7/15/36 (144A)‡ | | 6,000,000 | | | 6,000,000 | |
| | BlueMountain CLO XXVI Ltd 2020-30A D, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.9000%, 4.0838%, 1/15/33 (144A)‡ | | 4,000,000 | | | 4,013,232 | |
| | BlueMountain CLO XXVI Ltd 2021-28A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.2600%, 1.3727%, 4/15/34 (144A)‡ | | 5,000,000 | | | 5,015,165 | |
| | BlueMountain CLO XXVI Ltd 2021-28A E, | | | | | | |
| | ICE LIBOR USD 3 Month + 6.4000%, 6.5127%, 4/15/34 (144A)‡ | | 4,250,000 | | | 4,219,357 | |
| | Business Jet Securities LLC 2019-1C, 6.9480%, 7/15/34 (144A) | | 3,471,494 | | | 3,609,478 | |
| | Business Jet Securities LLC 2020-1A B, 3.9670%, 11/15/35 (144A) | | 6,599,247 | | | 6,784,499 | |
| | Business Jet Securities LLC 2021-1A B, 2.9180%, 4/15/36 (144A) | | 2,751,955 | | | 2,774,836 | |
| | Business Jet Securities LLC 2021-1A C, 5.0670%, 4/15/36 (144A) | | 3,045,052 | | | 3,054,357 | |
| | BVRT Financing Trust 2021-1F M2, 2.0600%, 7/1/33‡ | | 8,000,000 | | | 8,000,650 | |
| | BVRT Financing Trust 2021-CRT2 M1, 1.5600%, 1/10/31‡ | | 6,082,951 | | | 6,082,951 | |
| | BVRT Financing Trust 2021-CRT2 M1, 2.0600%, 1/10/31‡ | | 2,140,000 | | | 2,140,000 | |
| | BVRT Financing Trust 2021-CRT2 M2, 2.3270%, 11/10/32‡ | | 9,000,000 | | | 9,000,000 | |
| | BX Commercial Mortgage Trust 2018-BIOA F, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4711%, 2.5441%, 3/15/37 (144A)‡ | | 7,900,000 | | | 7,897,630 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | BX Commercial Mortgage Trust 2019-XL, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.0730%, 10/15/36 (144A)‡ | | $2,715,797 | | | $2,717,856 | |
| | BX Commercial Mortgage Trust 2019-XL, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.6500%, 2.7230%, 10/15/36 (144A)‡ | | 16,444,150 | | | 16,454,934 | |
| | BX Commercial Mortgage Trust 2020-BXLP, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.5000%, 2.5730%, 12/15/36 (144A)‡ | | 13,285,986 | | | 13,286,258 | |
| | BX Commercial Mortgage Trust 2021-LBA EJV, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.0730%, 2/15/36 (144A)‡ | | 11,200,000 | | | 11,210,478 | |
| | BX Commercial Mortgage Trust 2021-LBA EV, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.0730%, 2/15/36 (144A)‡ | | 9,000,000 | | | 9,008,416 | |
| | BX Commercial Mortgage Trust 2021-SOAR J, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.7500%, 0%, 6/15/38 (144A)‡ | | 6,799,000 | | | 6,799,987 | |
| | BX Commercial Mortgage Trust 2021-VINO G, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.9523%, 4.0253%, 5/15/38 (144A)‡ | | 12,000,000 | | | 12,149,972 | |
| | Carvana Auto Receivables Trust 2019-1, 5.6400%, 1/15/26 (144A) | | 6,000,000 | | | 6,429,346 | |
| | Carvana Auto Receivables Trust 2019-2A XS, 0%, 4/15/26 (144A)‡,¤ | | 445,000,000 | | | 3,159,500 | |
| | Carvana Auto Receivables Trust 2019-4A XS, 0%, 10/15/26 (144A)‡,¤ | | 242,500,000 | | | 2,158,250 | |
| | Castlelake Aircraft Securitization Trust 2016-1, 6.1500%, 8/15/41 | | 822,300 | | | 781,185 | |
| | Castlelake Aircraft Securitization Trust 2018-1, 6.6250%, 6/15/43 (144A) | | 3,830,196 | | | 2,923,437 | |
| | CBAM CLO Management 2020-13A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.4300%, 1.6183%, 1/20/34 (144A)‡ | | 6,000,000 | | | 6,026,214 | |
| | CBAM CLO Management 2021-14A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1000%, 0%, 4/20/34 (144A)‡ | | 15,000,000 | | | 15,010,980 | |
| | CBAM CLO Management 2021-14A D, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.1000%, 0%, 4/20/34 (144A)‡ | | 10,000,000 | | | 10,001,180 | |
| | CGDB Commercial Mortgage Trust 2019-MOB, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.0729%, 11/15/36 (144A)‡ | | 4,888,000 | | | 4,876,219 | |
| | Chase Auto Credit Linked Notes 2021-1 E, 2.3650%, 9/25/28 (144A) | | 3,759,000 | | | 3,757,398 | |
| | Chase Auto Credit Linked Notes 2021-1 F, 4.2800%, 9/25/28 (144A) | | 3,337,000 | | | 3,329,998 | |
| | CIFC Funding Ltd 2015-3A DR, | | | | | | |
| | ICE LIBOR USD 3 Month + 2.5000%, 2.6898%, 4/19/29 (144A)‡ | | 2,097,500 | | | 2,045,293 | |
| | CIFC Funding Ltd 2015-5A DR, | | | | | | |
| | ICE LIBOR USD 3 Month + 5.5500%, 5.7648%, 10/25/27 (144A)‡ | | 3,450,000 | | | 3,425,270 | |
| | CIM Trust 2021-NR1 A1, 2.5690%, 7/25/55 (144A)Ç | | 9,486,825 | | | 9,484,200 | |
| | Citigroup Commercial Mortgage Trust 2018-C5, 0.6932%, 6/10/51‡,¤ | | 36,276,143 | | | 1,402,703 | |
| | Coinstar Funding LLC 2017-1A A2, 5.2160%, 4/25/47 (144A) | | 12,945,600 | | | 12,935,550 | |
| | Cold Storage Trust 2020-ICE5 F, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.4925%, 3.5654%, 11/15/37 (144A)‡ | | 12,828,026 | | | 12,947,016 | |
| | COLT Funding LLC 2021-3R B1, 3.5630%, 12/25/64 (144A)‡ | | 2,547,000 | | | 2,563,549 | |
| | COLT Funding LLC 2021-3R B2, 4.5660%, 12/25/64 (144A)‡ | | 2,145,000 | | | 2,161,759 | |
| | Conn Funding II LP 2020-A C, 4.2000%, 6/16/25 (144A) | | 3,173,633 | | | 3,197,703 | |
| | Connecticut Avenue Securities Trust 2016-C04, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.2500%, 4.3415%, 1/25/29‡ | | 3,969,510 | | | 4,144,283 | |
| | Connecticut Avenue Securities Trust 2017-C05 1M2C, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.2000%, 2.2915%, 1/25/30‡ | | 11,211,032 | | | 11,351,771 | |
| | Connecticut Avenue Securities Trust 2018-R07, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4000%, 2.4915%, 4/25/31 (144A)‡ | | 801,828 | | | 805,799 | |
| | Connecticut Avenue Securities Trust 2018-R07 1B1, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.3500%, 4.4415%, 4/25/31 (144A)‡ | | 4,000,000 | | | 4,148,878 | |
| | Connecticut Avenue Securities Trust 2019-R02, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.3000%, 2.3915%, 8/25/31 (144A)‡ | | 756,645 | | | 761,766 | |
| | Connecticut Avenue Securities Trust 2019-R02, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.1500%, 4.2415%, 8/25/31 (144A)‡ | | 20,849,000 | | | 21,528,317 | |
| | Connecticut Avenue Securities Trust 2019-R03, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1500%, 2.2415%, 9/25/31 (144A)‡ | | 4,134,153 | | | 4,163,449 | |
| | Connecticut Avenue Securities Trust 2019-R03 1B1, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.1000%, 4.1915%, 9/25/31 (144A)‡ | | 8,942,669 | | | 9,203,249 | |
| | Connecticut Avenue Securities Trust 2020-R02, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.0915%, 1/25/40 (144A)‡ | | 4,944,692 | | | 4,965,571 | |
| | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Connecticut Avenue Securities Trust 2020-SBT1 2B1, | | | | | | |
| | ICE LIBOR USD 1 Month + 6.6000%, 6.6915%, 2/25/40 (144A)‡ | | $8,428,900 | | | $8,379,453 | |
| | Conn's Receivables Funding 2019-B LLC, 4.6000%, 6/17/24 (144A) | | 5,000,000 | | | 5,014,409 | |
| | Cosmopolitan Hotel Trust 2017, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.0000%, 3.0729%, 11/15/36 (144A)‡ | | 9,817,000 | | | 9,843,736 | |
| | Credit Suisse Commercial Mortgage Trust 2019-ICE4 F, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.6500%, 2.7230%, 5/15/36 (144A)‡ | | 14,200,000 | | | 14,229,690 | |
| | Credit Suisse Commercial Mortgage Trust 2020-TMIC A, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.0000%, 3.2500%, 12/15/35 (144A)‡ | | 15,000,000 | | | 15,255,166 | |
| | Credit Suisse Commercial Mortgage Trust 2020-UNFI, 4.1682%, 12/6/22‡ | | 15,000,000 | | | 14,980,717 | |
| | Credit Suisse Commercial Mortgage Trust 2021-WEHO A, 4.0422%, 4/15/23‡ | | 14,312,810 | | | 14,312,160 | |
| | CSAIL 2021-C20 XA, 1.1717%, 3/15/54‡,¤ | | 60,520,330 | | | 4,898,621 | |
| | DBCCRE Mortgage Trust 2014-ARCP D, 5.0990%, 1/10/34 (144A)‡ | | 1,000,000 | | | 1,064,657 | |
| | DBCCRE Mortgage Trust 2014-ARCP E, 5.0990%, 1/10/34 (144A)‡ | | 2,848,000 | | | 2,969,008 | |
| | DBCCRE Mortgage Trust 2014-ARCP F, 5.0990%, 1/10/34 (144A)‡ | | 11,442,000 | | | 11,706,901 | |
| | Diamond Infrastructure Funding LLC 2021-1A B, 2.3550%, 4/15/49 (144A) | | 4,000,000 | | | 3,991,208 | |
| | Diamond Infrastructure Funding LLC 2021-1A C, 3.4750%, 4/15/49 (144A) | | 3,420,000 | | | 3,405,686 | |
| | Diamond Resorts Owner Trust 2021-1A C, 2.7000%, 11/21/33 (144A) | | 2,802,007 | | | 2,825,857 | |
| | Diamond Resorts Owner Trust 2021-1A D, 3.8300%, 11/21/33 (144A) | | 1,401,004 | | | 1,453,100 | |
| | DROP Mortgage Trust 2021-FILE D, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.7500%, 2.8200%, 4/15/26 (144A)‡ | | 15,000,000 | | | 15,056,043 | |
| | Dryden Senior Loan Fund 2017-50A E, | | | | | | |
| | ICE LIBOR USD 3 Month + 6.2600%, 6.4440%, 7/15/30 (144A)‡ | | 2,400,000 | | | 2,381,820 | |
| | Dryden Senior Loan Fund 2020-83A D, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.5000%, 3.7373%, 1/18/32 (144A)‡ | | 6,000,000 | | | 6,018,774 | |
| | ECAF I Ltd, 5.8020%, 6/15/40 (144A) | | 3,478,533 | | | 2,749,853 | |
| | Elmwood CLO VIII Ltd 2021-1A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.2400%, 1.3560%, 1/20/34 (144A)‡ | | 5,000,000 | | | 5,002,320 | |
| | Elmwood CLO VIII Ltd 2021-1A D, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.0000%, 3.1160%, 1/20/34 (144A)‡ | | 3,000,000 | | | 2,992,788 | |
| | Exeter Automobile Receivables Trust 2020-1A E, 3.7400%, 1/15/27 (144A) | | 3,000,000 | | | 3,097,710 | |
| | Exeter Automobile Receivables Trust 2020-2A E, 7.1900%, 9/15/27 (144A) | | 1,017,000 | | | 1,126,969 | |
| | Extended Stay America Trust 2021-ESH E, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.8500%, 0%, 7/15/38 (144A)‡ | | 15,150,000 | | | 15,150,000 | |
| | Extended Stay America Trust 2021-ESH F, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.7000%, 0%, 7/15/38 (144A)‡ | | 4,000,000 | | | 4,000,000 | |
| | ExteNet Issuer LLC, 5.2190%, 7/26/49 (144A) | | 2,000,000 | | | 2,080,309 | |
| | Fannie Mae Connecticut Avenue Securities, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.0000%, 5.0915%, 7/25/25‡ | | 4,059,881 | | | 4,164,700 | |
| | Fannie Mae Connecticut Avenue Securities, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.7000%, 5.7915%, 4/25/28‡ | | 4,870,701 | | | 5,158,714 | |
| | Fannie Mae REMICS, ICE LIBOR USD 1 Month + 55.0000%, 53.9866%, 10/25/40‡ | | 588,203 | | | 2,355,400 | |
| | Fannie Mae REMICS, 3.0000%, 5/25/48 | | 22,765 | | | 24,131 | |
| | Fannie Mae REMICS, ICE LIBOR USD 1 Month + 6.0500%, 5.9585%, 8/25/48‡,¤ | | 11,251,902 | | | 2,142,997 | |
| | First Investors Auto Owner Trust 2018-1, 7.1600%, 8/15/25 (144A) | | 5,026,000 | | | 5,188,811 | |
| | Foursight Capital Auto Receivables Trust 2020-1 F, 4.6200%, 6/15/27 (144A) | | 1,250,000 | | | 1,286,890 | |
| | Freddie Mac Multifamily Structured Credit Risk 2021-MN1 B1, | | | | | | |
| | US 30 Day Average SOFR + 7.7500%, 7.7680%, 1/25/51 (144A)‡ | | 1,000,000 | | | 1,165,899 | |
| | Freddie Mac Multifamily Structured Credit Risk 2021-MN1 M2, | | | | | | |
| | US 30 Day Average SOFR + 3.7500%, 3.7680%, 1/25/51 (144A)‡ | | 2,000,000 | | | 2,099,939 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2018-DNA2 B1, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.7000%, 3.7915%, 12/25/30 (144A)‡ | | 5,607,000 | | | 5,802,881 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA3 B1, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.7500%, 5.8415%, 7/25/50 (144A)‡ | | 5,400,000 | | | 5,777,306 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA3 M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.6000%, 3.6915%, 7/25/50 (144A)‡ | | 2,980,835 | | | 2,999,264 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA4 B1, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.2500%, 5.3415%, 9/25/50 (144A)‡ | | 8,939,000 | | | 9,457,215 | |
| | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA5 B1, | | | | | | |
| | US 30 Day Average SOFR + 4.0000%, 4.0180%, 11/25/50 (144A)‡ | | $5,441,430 | | | $5,700,598 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-DNA2 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.3000%, 2.3180%, 8/25/33 (144A)‡ | | 1,483,000 | | | 1,520,745 | |
| | FREMF Mortgage Trust 2018-KF45, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.9500%, 2.0359%, 3/25/25 (144A)‡ | | 689,530 | | | 684,619 | |
| | FREMF Mortgage Trust 2018-KL2P BPZ, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.5000%, 2.5859%, 1/25/28 (144A)‡ | | 5,597,272 | | | 5,592,774 | |
| | FREMF Mortgage Trust 2018-KSW4 B, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4500%, 2.5359%, 10/25/28‡ | | 7,307,000 | | | 7,305,715 | |
| | FREMF Mortgage Trust 2019-KBF3, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.5000%, 2.5859%, 1/25/29 (144A)‡ | | 18,647,000 | | | 18,866,990 | |
| | FREMF Mortgage Trust 2019-KF72, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1000%, 2.1859%, 11/25/26 (144A)‡ | | 4,665,080 | | | 4,636,183 | |
| | Gam Resecuritization Trust 2021-FRR1 1A, 0%, 7/28/27 (144A) | | 4,000,000 | | | 3,256,810 | |
| | Gam Resecuritization Trust 2021-FRR1 1B, 0%, 7/28/27 (144A) | | 7,500,000 | | | 5,787,510 | |
| | Gam Resecuritization Trust 2021-FRR1 2A, 0%, 12/29/27 (144A) | | 4,000,000 | | | 3,200,688 | |
| | Gam Resecuritization Trust 2021-FRR1 2B, 0%, 12/29/27 (144A) | | 10,000,000 | | | 7,555,792 | |
| | Golden Tree Loan Management US CLO1 Ltd 2017-1A ER2, | | | | | | |
| | ICE LIBOR USD 3 Month + 6.5000%, 0%, 4/20/34 (144A)‡ | | 5,000,000 | | | 5,005,700 | |
| | Government National Mortgage Association, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.5500%, 5.4566%, 1/20/44‡,¤ | | 529,545 | | | 98,033 | |
| | Government National Mortgage Association, | | | | | | |
| | ICE LIBOR USD 1 Month + 6.1500%, 6.0754%, 10/16/55‡,¤ | | 608,387 | | | 97,768 | |
| | Government National Mortgage Association, 0.3693%, 1/16/60‡,¤ | | 16,460,232 | | | 683,804 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.7320%, 2.8050%, 12/15/36 (144A)‡ | | 13,500,000 | | | 13,245,941 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.1310%, 3.2040%, 12/15/36 (144A)‡ | | 3,899,000 | | | 3,832,217 | |
| | GS Mortgage Securities Trust 2012-GC6 C, 5.8604%, 1/10/45 (144A)‡ | | 5,193,000 | | | 5,133,396 | |
| | GS Mortgage Securities Trust 2017-SLP F, 4.7443%, 10/10/32 (144A)‡ | | 6,500,000 | | | 6,354,085 | |
| | GS Mortgage Securities Trust 2017-SLP G, 4.7443%, 10/10/32 (144A)‡ | | 1,831,000 | | | 1,767,008 | |
| | Hertz Vehicle Financing LLC 2021-1A D, 3.9800%, 12/26/25 (144A) | | 15,000,000 | | | 14,992,404 | |
| | HGI CRE CLO Ltd 2021-FL1 D, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.3500%, 2.4246%, 6/16/36 (144A)‡ | | 5,000,000 | | | 5,009,366 | |
| | Highbridge Loan Management Ltd 10A-16 DR, | | | | | | |
| | ICE LIBOR USD 3 Month + 6.4100%, 0%, 4/20/34 (144A)‡ | | 9,000,000 | | | 8,910,927 | |
| | Highbridge Loan Management Ltd 3A-2014 CR, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.6000%, 3.7898%, 7/18/29 (144A)‡ | | 1,600,000 | | | 1,564,645 | |
| | HIN Timeshare Trust 2020-A, 3.4200%, 10/9/39 (144A) | | 990,346 | | | 1,030,636 | |
| | Kayne CLO 10 Ltd 2021-10A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1700%, 0%, 4/23/34 (144A)‡ | | 12,500,000 | | | 12,508,862 | |
| | KNDL Mortgage Trust 2019-KNSQ F, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.0730%, 5/15/36 (144A)‡ | | 2,000,000 | | | 1,993,075 | |
| | LCM LP 14A ER, ICE LIBOR USD 3 Month + 5.5000%, 5.6883%, 7/20/31 (144A)‡ | | 1,475,000 | | | 1,339,452 | |
| | LCM LP XIV, ICE LIBOR USD 3 Month + 1.0400%, 1.2283%, 7/20/31 (144A)‡ | | 4,640,000 | | | 4,639,072 | |
| | Life Financial Services Trust 2021-BMR E, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.7500%, 1.8230%, 3/15/38 (144A)‡ | | 28,000,000 | | | 28,052,864 | |
| | LoanMe Trust SBL 2019-1, 5.2500%, 8/15/30 (144A) | | 402,134 | | | 399,290 | |
| | LoanMe Trust SBL 2019-1, 10.0000%, 8/15/30 (144A)Ç | | 5,800,000 | | | 5,974,000 | |
| | Longfellow Place CLO Ltd 2013-1A DRR, | | | | | | |
| | ICE LIBOR USD 3 Month + 4.5000%, 4.6838%, 4/15/29‡ | | 3,000,000 | | | 2,996,250 | |
| | Madison Park Funding Ltd, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.5000%, 3.6838%, 1/15/33 (144A)‡ | | 17,000,000 | | | 16,999,796 | |
| | Madison Park Funding Ltd 2018-32A A1R, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.0000%, 0%, 1/22/31 (144A)‡ | | 10,000,000 | | | 9,992,370 | |
| | Madison Park Funding Ltd 2018-32A DR, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.2000%, 0%, 1/22/31 (144A)‡ | | 7,000,000 | | | 7,000,287 | |
| | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Madison Park Funding Ltd 2021-38A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1200%, 0%, 7/17/34 (144A)‡ | | $5,000,000 | | | $5,002,025 | |
| | Magnetite CLO Ltd 2015-12A ARR, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1000%, 1.3413%, 10/15/31 (144A)‡ | | 4,375,000 | | | 4,375,175 | |
| | MBRT 2019-MBR H1, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.0000%, 4.0730%, 11/15/36 (144A)‡ | | 5,000,000 | | | 4,975,004 | |
| | Mello Warehouse Securitization Trust 2019-2, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4000%, 2.4915%, 11/25/52 (144A)‡ | | 8,020,000 | | | 8,111,665 | |
| | Mello Warehouse Securitization Trust 2021-1 F, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.7500%, 2.8561%, 2/25/55 (144A)‡ | | 3,386,000 | | | 3,385,997 | |
| | Mercury Financial Credit Card Master Trust 2021-1A B, | | | | | | |
| | 2.3300%, 3/20/26 (144A) | | 5,000,000 | | | 5,032,720 | |
| | Mercury Financial Credit Card Master Trust 2021-1A C, | | | | | | |
| | 4.2100%, 3/20/26 (144A) | | 4,000,000 | | | 3,998,319 | |
| | MHC Commercial Mortgage Trust 2021-MHC E, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1010%, 2.1738%, 4/15/38 (144A)‡ | | 3,000,000 | | | 3,004,083 | |
| | MHC Commercial Mortgage Trust 2021-MHC G, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.2010%, 3.2738%, 4/15/38 (144A)‡ | | 10,620,000 | | | 10,633,227 | |
| | Morgan Stanley Capital I Trust 2007-T27 AJ, 6.2148%, 6/11/42‡ | | 13,285,507 | | | 13,652,193 | |
| | MRCD 2019-MARK Mortgage Trust, 2.7175%, 12/15/36 (144A) | | 13,000,000 | | | 12,458,767 | |
| | Multifamily Connecticut Avenue Securities Trust 2019-01, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.2500%, 3.3415%, 10/15/49 (144A)‡ | | 13,756,000 | | | 13,822,725 | |
| | Multifamily Connecticut Avenue Securities Trust 2020-01, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.7500%, 3.8415%, 3/25/50 (144A)‡ | | 7,500,000 | | | 7,808,079 | |
| | Multifamily Connecticut Avenue Securities Trust 2020-01 CE, | | | | | | |
| | ICE LIBOR USD 1 Month + 7.5000%, 7.5915%, 3/25/50 (144A)‡ | | 2,000,000 | | | 2,195,040 | |
| | MVW Owner Trust 2021-1WA C, 1.9400%, 1/22/41 (144A) | | 1,224,900 | | | 1,230,687 | |
| | MVW Owner Trust 2021-1WA D, 3.1700%, 1/22/41 (144A) | | 3,870,683 | | | 3,860,055 | |
| | Neighborly Issuer LLC 2021-1A A2, 3.5840%, 4/30/51 (144A) | | 10,000,000 | | | 10,256,674 | |
| | Neuberger Berman CLO Ltd, | | | | | | |
| | ICE LIBOR USD 3 Month + 2.8000%, 2.9840%, 1/28/30 (144A)‡ | | 6,000,000 | | | 5,952,054 | |
| | Neuberger Berman CLO Ltd 2021-42A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1000%, 0%, 7/16/35 (144A)‡ | | 6,000,000 | | | 5,999,994 | |
| | Oak Hill Credit Partners 2012-7A AR3, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.0700%, 1.2253%, 2/20/34 (144A)‡ | | 5,000,000 | | | 5,001,480 | |
| | Oak Street Investment Grade Net Lease Fund 2020-1A B1, | | | | | | |
| | 5.1100%, 11/20/50 (144A) | | 4,499,000 | | | 4,838,338 | |
| | Oak Street Investment Grade Net Lease Fund 2021-1A A3, | | | | | | |
| | 2.8000%, 1/20/51 (144A) | | 5,000,000 | | | 5,097,886 | |
| | Oak Street Investment Grade Net Lease Fund 2021-1A B1, | | | | | | |
| | 4.2300%, 1/20/51 (144A) | | 2,400,000 | | | 2,517,271 | |
| | Oasis Securitisation 2020-2A, 4.2624%, 5/15/32 (144A) | | 1,825,265 | | | 1,840,724 | |
| | Oasis Securitisation 2021-1A A, 2.5792%, 2/15/33 (144A) | | 5,628,629 | | | 5,640,138 | |
| | OCP CLO Ltd, ICE LIBOR USD 3 Month + 3.0000%, 3.2148%, 4/24/29 (144A)‡ | | 6,000,000 | | | 5,892,984 | |
| | Octagon Investment Partners 40 Ltd, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.8000%, 3.9883%, 4/20/31 (144A)‡ | | 5,000,000 | | | 5,001,365 | |
| | Octagon Investment Partners 42 Ltd 2019-3A AR, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1400%, 0%, 7/15/34 (144A)‡ | | 10,000,000 | | | 10,000,000 | |
| | Octagon Investment Partners 42 Ltd 2019-3A ER, | | | | | | |
| | ICE LIBOR USD 3 Month + 6.7500%, 0%, 7/15/34 (144A)‡ | | 7,000,000 | | | 7,000,000 | |
| | Octagon Investment Partners XXI Ltd 2014-1A AAR3, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.0000%, 1.1541%, 2/14/31 (144A)‡ | | 8,000,000 | | | 8,000,504 | |
| | Ondeck Asset Securitization Trust LLC 2021-1A C, 2.9700%, 5/17/27 (144A) | | 3,000,000 | | | 3,019,212 | |
| | Pagaya AI Debt Selection Trust 2021-1 CERT, 0%, 11/15/27 (144A)‡,¤ | | 1,846,154 | | | 3,000,000 | |
| | Palmer Square CLO Ltd 2018-2A A1A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1000%, 1.2836%, 7/16/31 (144A)‡ | | 6,312,000 | | | 6,314,014 | |
| | Palmer Square Loan Funding 2019-4 Ltd, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.2500%, 3.4258%, 10/24/27 (144A)‡ | | 5,000,000 | | | 5,001,990 | |
| | Palmer Square Loan Funding 2020-2 Ltd, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.0000%, 3.1883%, 4/20/28 (144A)‡ | | 7,000,000 | | | 7,001,715 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Palmer Square Loan Funding 2020-4A C, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.6000%, 3.7470%, 11/25/28 (144A)‡ | | $3,000,000 | | | $3,010,035 | |
| | Pawnee Equipment Receivables Series 2019-1 LLC, 3.8000%, 1/15/26 (144A) | | 4,467,000 | | | 4,447,692 | |
| | Pawnee Equipment Receivables Series 2020-1 LLC, 5.4300%, 7/15/27 (144A) | | 6,165,000 | | | 6,238,598 | |
| | Perimeter Master Note Business Trust, 5.2100%, 5/15/24 (144A) | | 2,250,000 | | | 2,318,250 | |
| | Planet Fitness Master Issuer LLC 2019-1A, 3.8580%, 12/5/49 (144A) | | 4,109,420 | | | 4,139,095 | |
| | Preston Ridge Partners Mortgage Trust 2019-GS1, 4.7500%, 10/25/24 (144A)‡ | | 3,878,283 | | | 3,897,866 | |
| | PRIMA Capital Ltd, 4.2500%, 12/25/50 (144A) | | 10,500,000 | | | 10,046,361 | |
| | Project Silver, 6.9000%, 7/15/44 (144A)‡ | | 898,315 | | | 562,588 | |
| | Prosper Marketplace Issuance Trust 2018-2A, 5.5000%, 10/15/24 (144A) | | 4,880,773 | | | 4,943,546 | |
| | Raptor Aircraft Finance I LLC, 4.2130%, 8/23/44 (144A) | | 11,388,029 | | | 10,891,542 | |
| | Regatta XV Funding Ltd 2018-4A D, | | | | | | |
| | ICE LIBOR USD 3 Month + 6.5000%, 6.6758%, 10/25/31 (144A)‡ | | 2,350,000 | | | 2,282,278 | |
| | Santander Consumer Auto Receivables Trust 2020-BA, 4.1300%, 1/15/27 (144A) | | 1,500,000 | | | 1,579,281 | |
| | Santander Consumer Auto Receivables Trust 2021-AA E, | | | | | | |
| | 3.2800%, 3/15/27 (144A) | | 1,750,000 | | | 1,778,039 | |
| | Santander Prime Auto Issuance Notes Trust 2018-A, 6.8000%, 9/15/25 (144A) | | 1,888,075 | | | 1,905,692 | |
| | SB Multifamily Repack Trust 2020-FRR2 A1, 4.0000%, 12/27/39 (144A)‡ | | 13,720,494 | | | 14,488,694 | |
| | Sequoia Mortgage Trust 2018-8, 0.2521%, 11/25/48 (144A)‡,¤ | | 46,110,331 | | | 49,615 | |
| | Sierra Receivables Funding Co LLC 2020-2A D, 6.5900%, 7/20/37 (144A) | | 2,024,736 | | | 2,144,741 | |
| | Sierra Receivables Funding Co LLC 2021-1A C, 1.7900%, 11/20/37 (144A) | | 5,164,671 | | | 5,126,484 | |
| | Sierra Receivables Funding Co LLC 2021-1A D, 3.1700%, 11/20/37 (144A) | | 4,906,437 | | | 4,924,587 | |
| | Sierra Timeshare 2019-1 Receivables Funding LLC, 4.7500%, 1/20/36 (144A) | | 1,011,031 | | | 1,041,177 | |
| | Sierra Timeshare 2019-2 Receivables Funding LLC, 4.5400%, 5/20/36 (144A) | | 3,123,193 | | | 3,208,011 | |
| | Sprite 2017-1 Ltd, 6.9000%, 12/15/37 (144A)‡ | | 3,423,819 | | | 2,223,326 | |
| | Spruce Hill Mortgage Loan Trust 2020-SH2, 3.4070%, 6/25/55 (144A)‡ | | 7,013,051 | | | 7,131,404 | |
| | Summit Issuer LLC 2020-1A A2, 2.2900%, 12/20/50 (144A) | | 6,000,000 | | | 6,008,183 | |
| | Summit Issuer LLC 2020-1A B, 3.1790%, 12/20/50 (144A) | | 2,500,000 | | | 2,467,536 | |
| | Symphony CLO Ltd 2012-9A D2R2, | | | | | | |
| | ICE LIBOR USD 3 Month + 4.1000%, 4.2836%, 7/16/32 (144A)‡ | | 11,000,000 | | | 10,999,857 | |
| | Symphony CLO Ltd 2014-15A DR2, | | | | | | |
| | ICE LIBOR USD 3 Month + 4.0000%, 4.1898%, 1/17/32 (144A)‡ | | 2,000,000 | | | 2,000,526 | |
| | Symphony CLO Ltd 2021-26A ER, | | | | | | |
| | ICE LIBOR USD 3 Month + 7.5000%, 7.6092%, 4/20/33 (144A)‡ | | 10,000,000 | | | 10,006,130 | |
| | Tesla Auto Lease Trust 2020-A, 4.6400%, 8/20/24 (144A) | | 1,430,000 | | | 1,501,256 | |
| | Thrust Engine Leasing 2021-1A A, 4.1630%, 7/15/40 (144A) | | 10,000,000 | | | 9,999,619 | |
| | Thunderbolt Aircraft Lease Ltd 2017-A B, 5.7500%, 5/17/32 (144A)Ç | | 2,374,216 | | | 2,197,758 | |
| | UBS-Barclays Commercial Mortgage Trust 2013-C5 C, 4.2180%, 3/10/46 (144A)‡ | | 5,000,000 | | | 4,984,620 | |
| | United Auto Credit Securitization Trust 2019-1 F, 6.0500%, 1/12/26 (144A) | | 4,000,000 | | | 4,071,552 | |
| | Upstart Securitization Trust 2019-2 C, 4.7830%, 9/20/29 (144A) | | 13,032,000 | | | 13,420,233 | |
| | Upstart Securitization Trust 2019-3 C, 5.3810%, 1/21/30 (144A) | | 8,000,000 | | | 8,337,076 | |
| | Upstart Securitization Trust 2020-3 C, 6.2500%, 11/20/30 (144A) | | 12,000,000 | | | 12,854,224 | |
| | Upstart Securitization Trust 2021-1 B, 1.8900%, 3/20/31 (144A) | | 2,400,000 | | | 2,419,247 | |
| | Upstart Securitization Trust 2021-1 C, 4.0600%, 3/20/31 (144A) | | 3,250,000 | | | 3,321,596 | |
| | VASA Trust 2021-VASA D, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1000%, 2.1730%, 7/15/39 (144A)‡ | | 7,000,000 | | | 6,927,093 | |
| | VASA Trust 2021-VASA F, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.9000%, 3.9730%, 7/15/39 (144A)‡ | | 5,500,000 | | | 5,477,439 | |
| | VB-S1 Issuer LLC, 5.2500%, 2/15/48 (144A) | | 664,000 | | | 683,633 | |
| | VB-S1 Issuer LLC 2020-2A B, 3.2290%, 9/15/50 (144A) | | 5,750,000 | | | 5,870,941 | |
| | VB-S1 Issuer LLC 2020-2A C, 4.4590%, 9/15/50 (144A) | | 6,000,000 | | | 6,298,594 | |
| | VCAT Asset Securitization LLC 2020-NPL1, 3.6710%, 8/25/50 (144A)Ç | | 1,361,029 | | | 1,381,403 | |
| | Venture CDO Ltd 2021-42A A1A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1300%, 0%, 4/15/34 (144A)‡ | | 10,000,000 | | | 10,001,690 | |
| | Voya CLO Ltd 2014-4A CR2, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.3500%, 3.5358%, 7/14/31 (144A)‡ | | 7,000,000 | | | 6,771,170 | |
| | Voya CLO Ltd 2018-2A E, | | | | | | |
| | ICE LIBOR USD 3 Month + 5.2500%, 5.4338%, 7/15/31 (144A)‡ | | 1,625,000 | | | 1,548,632 | |
| | Vx Cargo 2018-1 Trust, 5.4380%, 12/15/33 (144A) | | 3,345,716 | | | 3,426,578 | |
| | Westlake Automobile Receivable Trust 2020-3A F, 5.1100%, 5/17/27 (144A) | | 7,000,000 | | | 7,288,578 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Westlake Automobile Receivables Trust 2018-2, 6.0400%, 1/15/25 (144A) | | $1,600,000 | | | $1,624,884 | |
| | Westlake Automobile Receivables Trust 2019-1, 5.6700%, 2/17/26 (144A) | | 2,000,000 | | | 2,063,213 | |
| | Willis Engine Securitization Trust 2020-A B, 4.2120%, 3/15/45 (144A) | | 6,010,789 | | | 5,392,150 | |
| | Willis Engine Securitization Trust 2020-A C, 6.6570%, 3/15/45 (144A) | | 2,195,896 | | | 1,514,331 | |
| | Z Capital Credit Partners CLO 2018-1 Ltd, | | | | | | |
| | ICE LIBOR USD 3 Month + 2.4500%, 2.6336%, 1/16/31 (144A)‡ | | 1,250,000 | | | 1,250,143 | |
| | Z Capital Credit Partners CLO 2018-1A A2 Ltd, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.5600%, 1.7436%, 1/16/31 (144A)‡ | | 3,090,000 | | | 3,090,513 | |
| | Z Capital Credit Partners CLO 2019-1 Ltd, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.6400%, 1.8236%, 7/16/31 (144A)‡ | | 13,000,000 | | | 13,000,884 | |
| | Z Capital Credit Partners CLO 2019-1 Ltd, | | | | | | |
| | ICE LIBOR USD 3 Month + 2.7000%, 2.8836%, 7/16/31 (144A)‡ | | 4,000,000 | | | 4,000,540 | |
| | Zaxby's Funding LLC 2021-1A A2, 3.2380%, 7/30/51 (144A) | | 4,323,000 | | | 4,399,129 | |
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $1,395,431,635) | | 1,398,940,981 | |
Bank Loans and Mezzanine Loans– 8.7% | | | |
Basic Industry – 0.8% | | | |
| | Aruba Investments Holdings LLC, | | | | | | |
| | ICE LIBOR USD 3 Month + 7.7500%, 8.5000%, 11/24/28‡ | | 5,786,000 | | | 5,805,267 | |
| | Herens US Holdco Corp, ICE LIBOR USD 1 Month + 4.0000%, 4.7500%, 4/28/28ƒ,‡ | | 7,692,308 | | | 7,696,462 | |
| | INEOS US Petrochem LLC, ICE LIBOR USD 1 Month + 2.7500%, 3.2500%, 1/29/26‡ | | 3,622,000 | | | 3,609,540 | |
| | Rohm Holding GmbH, ICE LIBOR USD 6 Month + 4.7500%, 4.9776%, 7/31/26‡ | | 2,251,624 | | | 2,260,175 | |
| | Spa US HoldCo Inc, ICE LIBOR USD 1 Month + 4.0000%, 4.7500%, 2/4/28ƒ,‡ | | 4,930,000 | | | 4,945,431 | |
| | | 24,316,875 | |
Brokerage – 0.2% | | | |
| | Jane Street Group LLC, ICE LIBOR USD 1 Month + 2.7500%, 2.8543%, 1/26/28‡ | | 6,368,995 | | | 6,334,857 | |
Capital Goods – 0.6% | | | |
| | Arcline FM Holdings LLC, ICE LIBOR USD 3 Month + 8.2500%, 9.0000%, 6/15/29‡ | | 6,664,000 | | | 6,664,000 | |
| | CP Atlas Buyer Inc, ICE LIBOR USD 3 Month + 3.7500%, 4.2500%, 11/23/27‡ | | 2,226,399 | | | 2,219,208 | |
| | LABL Inc, ICE LIBOR USD 1 Month + 4.0000%, 4.1043%, 7/1/26‡ | | 950,124 | | | 948,148 | |
| | Watlow Electric Manufacturing Co, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.0000%, 4.1473%, 3/2/28‡ | | 2,859,833 | | | 2,872,963 | |
| | White Cap Buyer LLC, ICE LIBOR USD 3 Month + 4.0000%, 4.5000%, 10/19/27‡ | | 5,196,696 | | | 5,203,192 | |
| | | 17,907,511 | |
Communications – 0.9% | | | |
| | Consolidated Communications Inc, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.5000%, 4.2500%, 10/2/27‡ | | 1,657,919 | | | 1,659,991 | |
| | Eagle Broadband Investments LLC, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.0000%, 3.7500%, 11/12/27‡ | | 4,530,235 | | | 4,525,977 | |
| | Formula One Management Ltd, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.5000%, 3.5000%, 2/1/24‡ | | 6,184,565 | | | 6,146,901 | |
| | GCI LLC, ICE LIBOR USD 1 Month + 2.7500%, 3.5000%, 10/15/25‡ | | 10,327,913 | | | 10,302,093 | |
| | Lions Gate Capital Holdings LLC, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.7500%, 1.8543%, 3/22/23‡ | | 6,163,969 | | | 6,063,805 | |
| | Virgin Media SFA Finance Ltd, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.2500%, 3.3053%, 11/15/27‡ | | 550,000 | GBP | | 749,374 | |
| | | 29,448,141 | |
Consumer Cyclical – 2.7% | | | |
| | 18 Fremont Street Acquisition LLC, | | | | | | |
| | ICE LIBOR USD 3 Month + 8.0000%, 9.5000%, 8/9/25‡ | | 10,834,658 | | | 11,051,352 | |
| | 84 Lumber Co, ICE LIBOR USD 1 Month + 3.0000%, 3.7500%, 11/13/26‡ | | 1,971,688 | | | 1,969,716 | |
| | Boardriders Inc, ICE LIBOR USD 3 Month + 6.5000%, 7.5000%, 4/23/24ƒ,‡ | | 4,783,430 | | | 2,439,549 | |
| | Boardriders Inc, ICE LIBOR USD 3 Month + 8.0000%, 9.0000%, 4/23/24‡,¢ | | 1,337 | | | 1,337 | |
| | Enterprise Development Authority/The, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.2500%, 5.0000%, 2/28/28‡ | | 5,607,453 | | | 5,621,471 | |
| | K-MAC Holdings Corp, ICE LIBOR USD 3 Month + 6.7500%, 9.0000%, 3/16/26‡ | | 5,246,231 | | | 5,267,793 | |
| | Kodiak BP LLC, ICE LIBOR USD 3 Month + 3.2500%, 4.0000%, 3/12/28‡ | | 1,858,343 | | | 1,854,273 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Bank Loans and Mezzanine Loans– (continued) | | | |
Consumer Cyclical– (continued) | | | |
| | Loire Finco Luxembourg, | | | | | | |
| | Euro Interbank Offered Rate 3 Month + 2.7500%, 2.7500%, 4/21/27‡ | | 2,660,000 | EUR | | $3,112,148 | |
| | Loire Finco Luxembourg, ICE LIBOR USD 1 Month + 3.0000%, 3.1043%, 4/21/27‡ | | $11,474,534 | | | 11,273,730 | |
| | Mic Glen LLC, ICE LIBOR USD 1 Month + 6.7500%, 7.2500%, 6/23/29ƒ,‡ | | 7,907,942 | | | 7,943,528 | |
| | Murphy USA Inc, ICE LIBOR USD 1 Month + 1.7500%, 2.2500%, 1/31/28‡ | | 2,263,405 | | | 2,264,831 | |
| | Playtika Holding Corp, ICE LIBOR USD 1 Month + 2.7500%, 2.8543%, 3/13/28‡ | | 9,088,223 | | | 9,041,782 | |
| | Sovos Brands Intermediate Inc, | | | | | | |
| | ICE LIBOR USD 6 Month + 4.2500%, 5.0000%, 6/8/28‡ | | 4,217,020 | | | 4,232,833 | |
| | Spectacle Gary Holdings LLC, | | | | | | |
| | ICE LIBOR USD 1 Month + 9.0000%, 11.0000%, 12/23/25‡ | | 231,560 | | | 251,821 | |
| | Spectacle Gary Holdings LLC, | | | | | | |
| | ICE LIBOR USD 3 Month + 9.0000%, 11.0000%, 12/23/25‡ | | 3,195,527 | | | 3,475,135 | |
| | Tacala Investment Corp, ICE LIBOR USD 1 Month + 3.7500%, 4.5000%, 2/5/27‡ | | 7,025,453 | | | 7,022,151 | |
| | Tacala Investment Corp, ICE LIBOR USD 1 Month + 7.5000%, 8.2500%, 2/4/28‡ | | 5,683,991 | | | 5,687,572 | |
| | Woof Holdings Inc, ICE LIBOR USD 1 Month + 7.2500%, 8.0000%, 12/21/28‡ | | 1,707,290 | | | 1,724,363 | |
| | | 84,235,385 | |
Consumer Non-Cyclical – 1.2% | | | |
| | Bayou Intermediate II LLC, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.5000%, 5.2500%, 5/13/28ƒ,‡ | | 9,000,000 | | | 9,011,250 | |
| | City Brewing Co LLC, ICE LIBOR USD 3 Month + 3.5000%, 4.2500%, 4/5/28‡ | | 6,340,227 | | | 6,364,003 | |
| | FC Compassus LLC, ICE LIBOR USD 1 Month + 4.2500%, 5.0000%, 12/31/26‡ | | 11,393,147 | | | 11,443,049 | |
| | Journey Personal Care Corp, | | | | | | |
| | ICE LIBOR USD 3 Month + 4.2500%, 5.0000%, 3/1/28‡ | | 4,701,482 | | | 4,710,320 | |
| | National Mentor Holdings Inc, | | | | | | |
| | ICE LIBOR USD 1 Month + 7.2500%, 8.0000%, 3/2/29‡ | | 1,742,478 | | | 1,764,259 | |
| | Sunshine Luxembourg VII Sarl, | | | | | | |
| | ICE LIBOR USD 3 Month + 3.7500%, 4.5000%, 6/18/27‡ | | 3,562,974 | | | 3,573,877 | |
| | Surgery Center Holdings Inc, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.7500%, 4.5000%, 8/31/26‡ | | 2,674,565 | | | 2,684,167 | |
| | | 39,550,925 | |
Other Diversified Financial Services – 0.2% | | | |
| | IGT Holding IV AB, ICE LIBOR USD 1 Month + 3.7500%, 4.2500%, 3/31/28ƒ,‡ | | 5,526,000 | | | 5,539,815 | |
Technology – 2.1% | | | |
| | Acuris Finance US Inc, ICE LIBOR USD 1 Month + 4.0000%, 4.5000%, 2/16/28‡ | | 2,570,885 | | | 2,577,313 | |
| | Atlas CC Acquisition Corp, | | | | | | |
| | ICE LIBOR USD 3 Month + 4.2500%, 5.0000%, 5/25/28‡ | | 8,559,155 | | | 8,580,553 | |
| | Atlas CC Acquisition Corp, | | | | | | |
| | ICE LIBOR USD 3 Month + 4.2500%, 5.0000%, 5/25/28‡ | | 1,740,845 | | | 1,745,197 | |
| | Epicor Software Corp, ICE LIBOR USD 1 Month + 3.2500%, 4.0000%, 7/30/27‡ | | 7,341,523 | | | 7,330,217 | |
| | Excelitas Technologies, ICE LIBOR USD 3 Month + 7.5000%, 8.5000%, 12/1/25‡ | | 1,350,000 | | | 1,344,938 | |
| | Finastra USA Inc, ICE LIBOR USD 3 Month + 3.5000%, 4.5000%, 6/13/24‡ | | 7,398,763 | | | 7,277,793 | |
| | Magenta Buyer LLC, ICE LIBOR USD 1 Month + 8.2500%, 9.0000%, 5/3/29ƒ,‡ | | 14,596,000 | | | 14,413,550 | |
| | Proofpoint Inc, ICE LIBOR USD 1 Month + 3.2500%, 3.7500%, 6/9/28ƒ,‡ | | 7,550,000 | | | 7,503,794 | |
| | RealPage Inc, ICE LIBOR USD 1 Month + 3.2500%, 3.7500%, 4/24/28‡ | | 6,652,120 | | | 6,628,837 | |
| | Redstone Holdco 2 LP, ICE LIBOR USD 3 Month + 7.7500%, 8.5000%, 4/27/29ƒ,‡ | | 3,216,222 | | | 3,154,567 | |
| | Redstone Holdco 2 LP, ICE LIBOR USD 3 Month + 7.7500%, 8.5000%, 4/27/29‡ | | 5,608,778 | | | 5,501,258 | |
| | Ultra Clean Holdings Inc, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.7500%, 3.8425%, 8/27/25‡ | | 1,848,315 | | | 1,862,049 | |
| | | 67,920,066 | |
Total Bank Loans and Mezzanine Loans (cost $274,647,786) | | 275,253,575 | |
Corporate Bonds– 34.8% | | | |
Banking – 1.5% | | | |
| | Banco La Hipotecaria SA, 5.5000%, 9/15/23 (144A) | | 5,700,000 | | | 6,165,552 | |
| | Banco La Hipotecaria SA, 4.1250%, 12/15/24 (144A) | | 5,000,000 | | | 5,344,615 | |
| | Bank of New York Mellon Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 4.3580%, 4.7000%‡,µ | | 2,998,000 | | | 3,271,568 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 3.9050%, 5.9500%‡,µ | | 9,973,000 | | | 10,914,950 | |
| | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Banking– (continued) | | | |
| | Credit Suisse Group AG, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.5540%, 4.5000% (144A)‡,µ | | $3,282,000 | | | $3,257,057 | |
| | HSBC Holdings PLC, SOFR + 1.9470%, 2.3570%, 8/18/31‡ | | 5,226,000 | | | 5,229,565 | |
| | JPMorgan Chase & Co, SOFR + 3.3800%, 5.0000%, 7/31/69‡ | | 3,476,000 | | | 3,673,958 | |
| | JPMorgan Chase & Co, SOFR + 3.1250%, 4.6000%, 1/23/70‡ | | 2,512,000 | | | 2,603,186 | |
| | SVB Financial Group, | | | | | | |
| | US Treasury Yield Curve Rate 10 Year + 3.0640%, 4.1000%‡,µ | | 6,392,000 | | | 6,483,853 | |
| | | 46,944,304 | |
Basic Industry – 2.2% | | | |
| | Arconic Rolled Products, 6.1250%, 2/15/28 (144A) | | 6,341,000 | | | 6,802,118 | |
| | CVR Partners LP / CVR Nitrogen Finance Corp, 6.1250%, 6/15/28 (144A) | | 8,706,000 | | | 8,923,650 | |
| | Hudbay Minerals Inc, 4.5000%, 4/1/26 (144A) | | 6,918,000 | | | 6,943,942 | |
| | Hudbay Minerals Inc, 6.1250%, 4/1/29 (144A) | | 6,957,000 | | | 7,409,205 | |
| | IAMGOLD Corp, 5.7500%, 10/15/28 (144A) | | 6,923,000 | | | 7,202,343 | |
| | Iris Holdings Inc, 8.7500% (8.75% Cash or 9.50% PIK), 2/15/26 (144A)Ø | | 6,203,000 | | | 6,327,060 | |
| | Neon Holdings Inc, 10.1250%, 4/1/26 (144A) | | 6,330,000 | | | 6,899,700 | |
| | Novelis Sheet Ingot GmbH, 3.3750%, 4/15/29 (144A) | | 3,810,000 | EUR | | 4,631,446 | |
| | SCIH Salt Holdings Inc, 4.8750%, 5/1/28 (144A) | | 9,160,000 | | | 9,158,901 | |
| | Trinseo Materials Operating SCA / Trinseo Materials Finance Inc, | | | | | | |
| | 5.1250%, 4/1/29 (144A) | | 6,771,000 | | | 6,923,347 | |
| | | 71,221,712 | |
Brokerage – 0.7% | | | |
| | Charles Schwab Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 4.9710%, 5.3750%‡,µ | | 2,255,000 | | | 2,492,452 | |
| | Charles Schwab Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.1680%, 4.0000%‡,µ | | 5,556,000 | | | 5,792,130 | |
| | Compass Group Diversified Holdings LLC, 5.2500%, 4/15/29 (144A) | | 6,326,000 | | | 6,579,040 | |
| | LPL Holdings Inc, 4.3750%, 5/15/31 (144A) | | 8,818,000 | | | 8,917,202 | |
| | | 23,780,824 | |
Capital Goods – 3.5% | | | |
| | ARD Finance SA, 5.0000% (5.00% Cash or 5.75% PIK), 6/30/27Ø | | 12,896,000 | EUR | | 15,678,246 | |
| | ARD Finance SA, 5.0000% (5.00% Cash or 5.75% PIK), 6/30/27 (144A)Ø | | 2,000,000 | EUR | | 2,431,490 | |
| | ARD Finance SA, 6.5000% (6.50% Cash or 7.25% PIK), 6/30/27 (144A)Ø | | 3,542,344 | | | 3,719,461 | |
| | Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc, | | | | | | |
| | 4.1250%, 8/15/26 (144A) | | 7,429,000 | | | 7,670,442 | |
| | Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc, | | | | | | |
| | 5.2500%, 8/15/27 (144A) | | 4,928,000 | | | 5,026,560 | |
| | Atkore Inc, 4.2500%, 6/1/31 (144A) | | 2,998,000 | | | 3,036,374 | |
| | CP Atlas Buyer Inc, 7.0000%, 12/1/28 (144A) | | 6,288,000 | | | 6,515,940 | |
| | HT Troplast GmbH, 9.2500%, 7/15/25 (144A) | | 2,790,000 | EUR | | 3,660,591 | |
| | LABL Escrow Issuer LLC, 10.5000%, 7/15/27 (144A) | | 8,928,000 | | | 9,843,120 | |
| | Madison IAQ LLC, 5.8750%, 6/30/29 (144A) | | 9,109,000 | | | 9,268,407 | |
| | Sofima Holdings SpA, 3.7500%, 1/15/28 (144A) | | 3,480,000 | EUR | | 4,145,716 | |
| | Titan International Inc, 7.0000%, 4/30/28 (144A) | | 7,087,000 | | | 7,414,774 | |
| | TransDigm Inc, 4.8750%, 5/1/29 (144A) | | 10,511,000 | | | 10,610,854 | |
| | Vontier Corp, 2.9500%, 4/1/31 (144A) | | 7,107,000 | | | 7,128,321 | |
| | Wabtec Corp, 4.9500%, 9/15/28 | | 3,330,000 | | | 3,862,755 | |
| | White Cap Buyer LLC, 6.8750%, 10/15/28 (144A) | | 6,065,000 | | | 6,491,066 | |
| | White Cap Parent LLC, 8.2500% (8.25% Cash or 9.00% PIK), 3/15/26 (144A)Ø | | 4,085,000 | | | 4,226,586 | |
| | | 110,730,703 | |
Communications – 3.7% | | | |
| | Altice Financing SA, 5.0000%, 1/15/28 (144A) | | 6,822,000 | | | 6,686,720 | |
| | AT&T INC, EURIBOR ICE SWAP Rate + 3.1400%, 2.8750%, 2/18/70‡ | | 5,300,000 | EUR | | 6,396,999 | |
| | Block Communications Inc, 4.8750%, 3/1/28 (144A) | | 7,120,000 | | | 7,262,400 | |
| | Cablevision Lightpath LLC, 5.6250%, 9/15/28 (144A) | | 8,622,000 | | | 8,781,507 | |
| | Consolidated Communications Inc, 5.0000%, 10/1/28 (144A) | | 6,700,000 | | | 6,792,125 | |
| | Consolidated Communications Inc, 6.5000%, 10/1/28 (144A) | | 2,029,000 | | | 2,182,697 | |
| | CSC Holdings LLC, 7.5000%, 4/1/28 (144A) | | 5,055,000 | | | 5,547,862 | |
| | Front Range BidCo Inc, 4.0000%, 3/1/27 (144A) | | 15,087,000 | | | 14,983,201 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Communications– (continued) | | | |
| | LCPR Senior Secured Financing DAC, 5.1250%, 7/15/29 (144A) | | $8,642,000 | | | $8,933,667 | |
| | Level 3 Financing Inc, 3.8750%, 11/15/29 (144A) | | 5,000,000 | | | 5,355,150 | |
| | Liberty Interactive LLC, 8.5000%, 7/15/29 | | 6,763,000 | | | 7,707,250 | |
| | Netflix Inc, 3.6250%, 6/15/30 | | 5,837,000 | EUR | | 8,221,419 | |
| | Nexstar Broadcasting Inc, 4.7500%, 11/1/28 (144A) | | 4,682,000 | | | 4,810,755 | |
| | T-Mobile USA Inc, 2.5500%, 2/15/31 | | 4,808,000 | | | 4,861,850 | |
| | Uniti Group LP / Uniti Group Finance Inc, 6.5000%, 2/15/29 (144A) | | 7,508,000 | | | 7,526,770 | |
| | Univision Communications Inc, 4.5000%, 5/1/29 (144A) | | 5,522,000 | | | 5,563,415 | |
| | Windstream Escrow LLC, 7.7500%, 8/15/28 (144A) | | 4,728,000 | | | 4,869,840 | |
| | | 116,483,627 | |
Construction & Engineering – 0.2% | | | |
| | Arcosa Inc, 4.3750%, 4/15/29 (144A) | | 5,045,000 | | | 5,133,287 | |
Consumer Cyclical – 7.5% | | | |
| | Bloomin' Brands Inc, 5.1250%, 4/15/29 (144A) | | 5,315,000 | | | 5,461,162 | |
| | Carnival Corp, 7.6250%, 3/1/26 (144A) | | 3,563,000 | | | 3,870,309 | |
| | Cars.com Inc, 6.3750%, 11/1/28 (144A) | | 5,960,000 | | | 6,356,578 | |
| | Carvana Co, 5.5000%, 4/15/27 (144A) | | 6,975,000 | | | 7,203,292 | |
| | CCM Merger Inc, 6.3750%, 5/1/26 (144A) | | 3,093,000 | | | 3,247,650 | |
| | Cinemark USA Inc, 5.2500%, 7/15/28 (144A) | | 6,437,000 | | | 6,597,925 | |
| | Cushman & Wakefield Inc, 6.7500%, 5/15/28 (144A) | | 5,761,000 | | | 6,213,008 | |
| | Downstream Development Authority of the Quapaw Tribe of Oklahoma, | | | | | | |
| | 10.5000%, 2/15/23 (144A) | | 12,041,000 | | | 12,550,936 | |
| | Expedia Group Inc, 6.2500%, 5/1/25 (144A) | | 2,953,000 | | | 3,435,092 | |
| | Expedia Group Inc, 2.9500%, 3/15/31 | | 4,324,000 | | | 4,381,569 | |
| | Ford Motor Co, 9.0000%, 4/22/25 | | 3,198,000 | | | 3,942,718 | |
| | Ford Motor Co, 6.3750%, 2/1/29 | | 1,356,000 | | | 1,574,994 | |
| | Ford Motor Co, 9.6250%, 4/22/30 | | 5,512,000 | | | 7,909,720 | |
| | Ford Motor Co, 7.4500%, 7/16/31 | | 6,370,000 | | | 8,376,550 | |
| | Full House Resorts Inc, 8.2500%, 2/15/28 (144A) | | 8,378,000 | | | 9,132,020 | |
| | GLP Capital LP / GLP Financing II Inc, 4.0000%, 1/15/31 | | 5,229,000 | | | 5,634,143 | |
| | Goodyear Tire & Rubber Co/The, 5.2500%, 7/15/31 (144A) | | 8,609,000 | | | 8,996,405 | |
| | IHO Verwaltungs GmbH, 3.8750% (3.88% Cash or 4.63% PIK), 5/15/27 (144A)Ø | | 8,638,149 | EUR | | 10,546,438 | |
| | IRB Holding Corp, 7.0000%, 6/15/25 (144A) | | 5,992,000 | | | 6,471,480 | |
| | LGI Homes Inc, 4.0000%, 7/15/29 (144A) | | 4,600,000 | | | 4,623,000 | |
| | Life Time Inc, 5.7500%, 1/15/26 (144A) | | 6,308,000 | | | 6,536,665 | |
| | Life Time Inc, 8.0000%, 4/15/26 (144A)# | | 2,616,000 | | | 2,787,976 | |
| | Lithia Motors Inc, 3.8750%, 6/1/29 (144A) | | 3,252,000 | | | 3,370,861 | |
| | Lithia Motors Inc, 4.3750%, 1/15/31 (144A) | | 9,287,000 | | | 9,947,399 | |
| | LSF9 Atlantis Holdings LLC / Victra Finance Corp, 7.7500%, 2/15/26 (144A) | | 6,598,000 | | | 6,842,522 | |
| | Matthews International Corp, 5.2500%, 12/1/25 (144A) | | 6,468,000 | | | 6,653,955 | |
| | Newco GB SAS, 8.0000% (8.00% Cash or 8.75% PIK), 12/15/22Ø | | 3,642,606 | EUR | | 4,361,885 | |
| | PulteGroup Inc, 7.8750%, 6/15/32 | | 2,122,000 | | | 3,046,131 | |
| | Realogy Group LLC / Realogy Co-Issuer Corp, 9.3750%, 4/1/27 (144A) | | 5,612,000 | | | 6,235,718 | |
| | Realogy Group LLC / Realogy Co-Issuer Corp, 5.7500%, 1/15/29 (144A) | | 6,907,000 | | | 7,220,509 | |
| | Rent-A-Center Inc, 6.3750%, 2/15/29 (144A) | | 5,870,000 | | | 6,302,912 | |
| | Sands China Ltd, 4.3750%, 6/18/30 | | 3,143,000 | | | 3,398,117 | |
| | Service Corporation International, 4.0000%, 5/15/31 | | 5,630,000 | | | 5,746,400 | |
| | Shea Homes LP / Shea Homes Funding Corp, 4.7500%, 4/1/29 (144A) | | 8,600,000 | | | 8,831,168 | |
| | Twin River Worldwide Holdings Inc, 6.7500%, 6/1/27 (144A) | | 5,868,000 | | | 6,253,117 | |
| | VICI Properties LP / VICI Note Co Inc, 3.7500%, 2/15/27 (144A) | | 7,140,000 | | | 7,262,237 | |
| | Wendy's International LLC, 7.0000%, 12/15/25 | | 5,841,000 | | | 6,571,125 | |
| | Wyndham Destinations Inc, 6.6250%, 7/31/26 (144A) | | 9,279,000 | | | 10,513,107 | |
| | | 238,406,793 | |
Consumer Non-Cyclical – 4.1% | | | |
| | Bausch Health Cos Inc, 5.0000%, 1/30/28 (144A) | | 8,845,000 | | | 8,391,694 | |
| | Bausch Health Cos Inc, 4.8750%, 6/1/28 (144A) | | 5,156,000 | | | 5,277,166 | |
| | CHS / Community Health Systems Inc, 6.6250%, 2/15/25 (144A) | | 5,541,000 | | | 5,859,552 | |
| | CHS / Community Health Systems Inc, 6.8750%, 4/15/29 (144A) | | 3,510,000 | | | 3,673,110 | |
| | Hadrian Merger Sub Inc, 8.5000%, 5/1/26 (144A) | | 9,876,000 | | | 10,295,730 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Consumer Non-Cyclical– (continued) | | | |
| | Hasbro Inc, 3.9000%, 11/19/29 | | $4,699,000 | | | $5,224,726 | |
| | HCA Inc, 3.5000%, 9/1/30 | | 7,022,000 | | | 7,481,028 | |
| | HLF Financing Sarl LLC / Herbalife International Inc, | | | | | | |
| | 4.8750%, 6/1/29 (144A) | | 10,708,000 | | | 10,788,310 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 6.5000%, 4/15/29 (144A) | | 11,362,000 | | | 12,768,161 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 3.7500%, 12/1/31 (144A) | | 4,418,000 | | | 4,520,718 | |
| | Kraft Heinz Foods Co, 4.2500%, 3/1/31 | | 6,552,000 | | | 7,442,998 | |
| | MPH Acquisition Holdings LLC, 5.7500%, 11/1/28 (144A)# | | 9,281,000 | | | 9,326,570 | |
| | Organon Finance 1 LLC, 4.1250%, 4/30/28 (144A) | | 7,074,000 | | | 7,214,065 | |
| | Pilgrim's Pride Corp, 4.2500%, 4/15/31 (144A) | | 8,331,000 | | | 8,632,999 | |
| | Prime Healthcare Services Inc, 7.2500%, 11/1/25 (144A) | | 4,228,000 | | | 4,577,148 | |
| | Smithfield Foods Inc, 3.0000%, 10/15/30 (144A) | | 3,136,000 | | | 3,161,798 | |
| | Surgery Center Holdings Inc, 6.7500%, 7/1/25 (144A) | | 5,180,000 | | | 5,283,600 | |
| | Tenet Healthcare Corp, 6.8750%, 11/15/31 | | 3,354,000 | | | 3,806,790 | |
| | Teva Pharmaceutical Finance Netherlands III BV, 3.1500%, 10/1/26 | | 6,856,000 | | | 6,521,770 | |
| | | 130,247,933 | |
Electric – 1.3% | | | |
| | CMS Energy Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 4.1160%, 4.7500%, 6/1/50‡ | | 5,380,000 | | | 5,995,337 | |
| | Duquesne Light Holdings Inc, 2.5320%, 10/1/30 (144A) | | 4,969,000 | | | 4,881,540 | |
| | IPALCO Enterprises Inc, 4.2500%, 5/1/30 | | 6,498,000 | | | 7,297,640 | |
| | NRG Energy Inc, 3.3750%, 2/15/29 (144A) | | 8,630,000 | | | 8,446,785 | |
| | NRG Energy Inc, 3.6250%, 2/15/31 (144A) | | 4,681,000 | | | 4,600,019 | |
| | Pacific Gas and Electric Co, 3.0000%, 6/15/28 | | 6,906,000 | | | 6,937,063 | |
| | Toledo Edison Co/The, 2.6500%, 5/1/28 (144A) | | 3,650,000 | | | 3,752,404 | |
| | | 41,910,788 | |
Energy – 1.6% | | | |
| | DCP Midstream Operating LP, 5.6000%, 4/1/44 | | 2,517,000 | | | 2,768,713 | |
| | DT Midstream Inc, 4.1250%, 6/15/29 (144A) | | 7,432,000 | | | 7,545,933 | |
| | EnLink Midstream LLC, 5.6250%, 1/15/28 (144A) | | 6,693,000 | | | 7,070,418 | |
| | EQM Midstream Partners LP, 5.5000%, 7/15/28 | | 1,750,000 | | | 1,891,015 | |
| | EQT Corp, 3.6250%, 5/15/31 (144A) | | 5,744,000 | | | 5,988,120 | |
| | Great Western Petroleum LLC / Great Western Finance Corp, | | | | | | |
| | 12.0000%, 9/1/25 (144A) | | 3,473,000 | | | 3,455,635 | |
| | NGL Energy Partners LP / NGL Energy Finance Corp, 7.5000%, 2/1/26 (144A) | | 6,471,000 | | | 6,794,550 | |
| | NuStar Logistics LP, 5.7500%, 10/1/25 | | 8,135,000 | | | 8,846,812 | |
| | ONEOK Inc, 3.1000%, 3/15/30 | | 5,174,000 | | | 5,409,434 | |
| | | 49,770,630 | |
Finance Companies – 0.5% | | | |
| | FirstCash Inc, 4.6250%, 9/1/28 (144A) | | 5,509,000 | | | 5,758,833 | |
| | Quicken Loans LLC, 3.8750%, 3/1/31 (144A) | | 8,936,000 | | | 9,002,931 | |
| | | 14,761,764 | |
Financial Institutions – 0.5% | | | |
| | CPI Property Group SA, EUR SWAP ANNUAL 5 YR + 4.9440%, 4.8750%‡,µ | | 5,589,000 | EUR | | 7,011,745 | |
| | Vivion Investments Sarl, 3.0000%, 8/8/24 | | 8,800,000 | EUR | | 10,370,322 | |
| | | 17,382,067 | |
Industrial – 0.2% | | | |
| | AT Securities BV, USD SWAP SEMI 30/360 5YR + 3.5460%, 5.2500%‡,µ | | 5,000,000 | | | 5,222,000 | |
Industrial Conglomerates – 0.3% | | | |
| | General Electric Co, ICE LIBOR USD 3 Month + 3.3300%, 3.4489%‡,µ | | 10,974,000 | | | 10,754,520 | |
Information Technology Services – 0.4% | | | |
| | KBR Inc, 4.7500%, 9/30/28 (144A) | | 12,552,000 | | | 12,552,000 | |
Insurance – 1.4% | | | |
| | Athene Holding Ltd, 6.1500%, 4/3/30 | | 5,492,000 | | | 6,943,735 | |
| | Athene Holding Ltd, 3.5000%, 1/15/31 | | 6,715,000 | | | 7,159,185 | |
| | Centene Corp, 2.4500%, 7/15/28 | | 10,787,000 | | | 10,932,624 | |
| | Centene Corp, 3.0000%, 10/15/30 | | 7,302,000 | | | 7,501,199 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Insurance– (continued) | | | |
| | MGIC Investment Corp, 5.2500%, 8/15/28 | | $8,400,000 | | | $8,904,000 | |
| | Prudential Financial Inc, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.0350%, 3.7000%, 10/1/50‡ | | 3,317,000 | | | 3,457,972 | |
| | | 44,898,715 | |
Interactive Media & Services – 0.2% | | | |
| | Snap Inc, Convertible, 0.7500%, 8/1/26 | | 1,978,000 | | | 5,956,252 | |
Real Estate Investment Trusts (REITs) – 2.0% | | | |
| | American Homes 4 Rent LP, 4.2500%, 2/15/28 | | 2,350,000 | | | 2,637,843 | |
| | American Homes 4 Rent LP, 2.3750%, 7/15/31 | | 11,150,000 | | | 10,984,199 | |
| | CTR Partnership LP / CareTrust Capital Corp, 3.8750%, 6/30/28 (144A) | | 6,504,000 | | | 6,641,364 | |
| | Global Net Lease Inc / Global Net Lease Operating Partnership LP, | | | | | | |
| | 3.7500%, 12/15/27 (144A) | | 8,400,000 | | | 8,313,866 | |
| | Lexington Realty Trust, 2.7000%, 9/15/30 | | 5,313,000 | | | 5,400,669 | |
| | Omega Healthcare Investors Inc, 3.3750%, 2/1/31 | | 6,077,000 | | | 6,242,792 | |
| | Rexford Industrial Realty Inc, 2.1250%, 12/1/30 | | 5,717,000 | | | 5,494,653 | |
| | Safehold Operating Partnership LP, 2.8000%, 6/15/31 | | 8,960,000 | | | 8,956,656 | |
| | Sun Communities Inc, 2.7000%, 7/15/31 | | 8,420,000 | | | 8,419,147 | |
| | | 63,091,189 | |
Real Estate Management & Development – 0.1% | | | |
| | Howard Hughes Corp, 4.1250%, 2/1/29 (144A) | | 2,062,000 | | | 2,062,041 | |
| | Howard Hughes Corp, 4.3750%, 2/1/31 (144A) | | 2,062,000 | | | 2,054,536 | |
| | | 4,116,577 | |
Technology – 1.8% | | | |
| | Austin BidCo Inc, 7.1250%, 12/15/28 (144A) | | 6,629,000 | | | 6,792,670 | |
| | CoStar Group Inc, 2.8000%, 7/15/30 (144A) | | 2,639,000 | | | 2,680,856 | |
| | Entegris Inc, 3.6250%, 5/1/29 (144A) | | 2,963,000 | | | 3,000,038 | |
| | Everi Holdings Inc, 5.0000%, 7/15/29 | | 2,170,000 | | | 2,170,000 | |
| | ION Trading Technologies Sarl, 5.7500%, 5/15/28 (144A) | | 8,670,000 | | | 9,001,497 | |
| | MSCI Inc, 3.8750%, 2/15/31 (144A) | | 3,586,000 | | | 3,721,407 | |
| | MSCI Inc, 3.6250%, 11/1/31 (144A) | | 10,846,000 | | | 11,124,742 | |
| | Rocket Software Inc, 6.5000%, 2/15/29 (144A) | | 6,927,000 | | | 6,873,524 | |
| | Skyworks Solutions Inc, 3.0000%, 6/1/31 | | 4,808,000 | | | 4,914,303 | |
| | Square Inc, 3.5000%, 6/1/31 (144A) | | 5,664,000 | | | 5,713,560 | |
| | | 55,992,597 | |
Transportation – 1.1% | | | |
| | Cargo Aircraft Management Inc, 4.7500%, 2/1/28 (144A) | | 13,321,000 | | | 13,585,155 | |
| | StorCentric Inc, 5.8750%, 2/19/23 (144A) | | 6,000,000 | | | 5,985,000 | |
| | Watco Cos LLC / Watco Finance Corp, 6.5000%, 6/15/27 (144A) | | 12,880,000 | | | 13,781,600 | |
| | | 33,351,755 | |
Total Corporate Bonds (cost $1,059,306,633) | | 1,102,710,037 | |
Mortgage-Backed Securities– 17.7% | | | |
Fannie Mae: | | | |
| | 1.5000%, TBA, 15 Year Maturity | | 8,068,484 | | | 8,162,805 | |
| | 2.0000%, TBA, 15 Year Maturity | | 12,576,162 | | | 12,970,047 | |
| | 2.5000%, TBA, 15 Year Maturity | | 16,077,000 | | | 16,763,488 | |
| | 3.0000%, TBA, 15 Year Maturity | | 6,503,441 | | | 6,830,694 | |
| | 3.5000%, TBA, 15 Year Maturity | | 5,026,417 | | | 5,367,158 | |
| | 1.5000%, TBA, 30 Year Maturity | | 13,383,167 | | | 13,123,520 | |
| | 2.5000%, TBA, 30 Year Maturity | | 124,113,583 | | | 128,345,856 | |
| | 3.0000%, TBA, 30 Year Maturity | | 34,231,905 | | | 35,684,707 | |
| | 3.5000%, TBA, 30 Year Maturity | | 27,100,900 | | | 28,523,697 | |
| | 4.5000%, TBA, 30 Year Maturity | | 7,181,000 | | | 7,727,043 | |
| | | 263,499,015 | |
Fannie Mae Pool: | | | |
| | 3.0000%, 10/1/34 | | 244,869 | | | 259,419 | |
| | 6.0000%, 2/1/37 | | 924 | | | 1,095 | |
| | 3.0000%, 9/1/42 | | 1,504,426 | | | 1,598,521 | |
| | 3.0000%, 1/1/43 | | 1,950,442 | | | 2,072,434 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Fannie Mae Pool– (continued) | | | |
| | 3.0000%, 2/1/43 | | $5,581,592 | | | $5,919,219 | |
| | 3.0000%, 2/1/43 | | 841,068 | | | 893,673 | |
| | 3.0000%, 2/1/43 | | 59,269 | | | 63,015 | |
| | 3.0000%, 3/1/43 | | 2,257,807 | | | 2,400,539 | |
| | 3.0000%, 3/1/43 | | 704,820 | | | 749,377 | |
| | 3.0000%, 5/1/43 | | 5,784,096 | | | 6,083,583 | |
| | 3.0000%, 5/1/43 | | 575,915 | | | 612,323 | |
| | 3.0000%, 5/1/43 | | 2,495 | | | 2,652 | |
| | 5.0000%, 7/1/44 | | 9,206 | | | 10,328 | |
| | 4.5000%, 10/1/44 | | 5,563 | | | 6,240 | |
| | 4.5000%, 3/1/45 | | 8,127 | | | 9,115 | |
| | 3.0000%, 7/1/45 | | 3,116,902 | | | 3,313,944 | |
| | 3.5000%, 12/1/45 | | 429,243 | | | 457,901 | |
| | 4.5000%, 2/1/46 | | 12,078 | | | 13,386 | |
| | 3.5000%, 7/1/46 | | 18,382 | | | 19,898 | |
| | 3.0000%, 9/1/46 | | 1,426,205 | | | 1,515,409 | |
| | 3.0000%, 11/1/46 | | 327,094 | | | 349,808 | |
| | 3.0000%, 1/1/47 | | 137,757 | | | 147,323 | |
| | 3.5000%, 3/1/47 | | 371,132 | | | 395,911 | |
| | 4.0000%, 5/1/47 | | 1,246,580 | | | 1,375,257 | |
| | 3.5000%, 7/1/47 | | 317,913 | | | 339,139 | |
| | 3.5000%, 8/1/47 | | 3,951 | | | 4,177 | |
| | 3.5000%, 1/1/48 | | 4,879 | | | 5,238 | |
| | 4.0000%, 1/1/48 | | 18,046 | | | 19,729 | |
| | 3.0000%, 2/1/48 | | 59,889 | | | 64,086 | |
| | 3.5000%, 3/1/48 | | 3,728,485 | | | 3,991,977 | |
| | 4.0000%, 3/1/48 | | 6,418 | | | 7,009 | |
| | 3.0000%, 5/1/48 | | 26,097 | | | 27,583 | |
| | 3.5000%, 7/1/48 | | 8,889,515 | | | 9,447,223 | |
| | 4.5000%, 12/1/48 | | 1,039,413 | | | 1,136,818 | |
| | 3.0000%, 9/1/49 | | 480,173 | | | 506,068 | |
| | 2.5000%, 1/1/50 | | 1,292,049 | | | 1,341,621 | |
| | 3.0000%, 2/1/57 | | 6,833,803 | | | 7,260,556 | |
| | 3.0000%, 6/1/57 | | 31,151 | | | 33,097 | |
| | | 52,454,691 | |
Freddie Mac Gold Pool: | | | |
| | 3.5000%, 1/1/47 | | 268,713 | | | 289,481 | |
Freddie Mac Pool: | | | |
| | 3.0000%, 5/1/31 | | 2,187,372 | | | 2,312,963 | |
| | 3.0000%, 9/1/32 | | 314,688 | | | 333,372 | |
| | 3.0000%, 1/1/33 | | 175,303 | | | 185,711 | |
| | 3.0000%, 10/1/34 | | 501,635 | | | 532,843 | |
| | 3.0000%, 10/1/34 | | 208,909 | | | 221,314 | |
| | 6.0000%, 4/1/40 | | 20,486 | | | 24,378 | |
| | 2.0000%, 5/1/41 | | 90,434,433 | | | 92,351,759 | |
| | 3.0000%, 2/1/43 | | 6,242 | | | 6,638 | |
| | 3.5000%, 2/1/43 | | 6,176 | | | 6,659 | |
| | 3.0000%, 3/1/43 | | 121,995 | | | 129,537 | |
| | 3.0000%, 3/1/43 | | 3,051 | | | 3,245 | |
| | 3.0000%, 6/1/43 | | 342,262 | | | 357,738 | |
| | 3.0000%, 11/1/43 | | 5,870,250 | | | 6,240,229 | |
| | 3.5000%, 2/1/44 | | 17,268 | | | 18,620 | |
| | 4.5000%, 5/1/44 | | 4,437 | | | 4,929 | |
| | 3.5000%, 12/1/44 | | 317,550 | | | 340,958 | |
| | 3.0000%, 1/1/45 | | 3,792 | | | 4,018 | |
| | 3.5000%, 7/1/46 | | 4,567 | | | 4,921 | |
| | 3.0000%, 10/1/46 | | 23,052 | | | 24,436 | |
| | 4.0000%, 3/1/47 | | 10,762 | | | 11,681 | |
| | 3.5000%, 9/1/47 | | 6,764 | | | 7,151 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Freddie Mac Pool– (continued) | | | |
| | 3.5000%, 12/1/47 | | $61,145 | | | $65,944 | |
| | 3.5000%, 2/1/48 | | 4,186 | | | 4,479 | |
| | 4.0000%, 4/1/48 | | 2,240 | | | 2,435 | |
| | 4.5000%, 4/1/49 | | 2,320,045 | | | 2,507,633 | |
| | 4.0000%, 5/1/49 | | 5,309,254 | | | 5,663,471 | |
| | 4.0000%, 5/1/49 | | 374,797 | | | 400,168 | |
| | 3.5000%, 8/1/49 | | 4,062,998 | | | 4,272,039 | |
| | 3.0000%, 10/1/49 | | 573,052 | | | 597,332 | |
| | 3.0000%, 10/1/49 | | 285,058 | | | 297,136 | |
| | 3.0000%, 11/1/49 | | 1,006,736 | | | 1,049,391 | |
| | 3.0000%, 11/1/49 | | 225,487 | | | 235,041 | |
| | 3.0000%, 11/1/49 | | 46,745 | | | 48,726 | |
| | 3.0000%, 12/1/49 | | 2,234,516 | | | 2,329,192 | |
| | 3.0000%, 12/1/49 | | 1,179,797 | | | 1,229,785 | |
| | 3.0000%, 12/1/49 | | 527,205 | | | 549,543 | |
| | 2.5000%, 1/1/50 | | 529,963 | | | 550,324 | |
| | 3.0000%, 3/1/50 | | 1,588,932 | | | 1,659,117 | |
| | | 124,584,856 | |
Ginnie Mae: | | | |
| | 2.0000%, TBA, 30 Year Maturity | | 14,921,423 | | | 15,194,187 | |
| | 2.5000%, TBA, 30 Year Maturity | | 38,560,034 | | | 39,884,186 | |
| | 3.0000%, TBA, 30 Year Maturity | | 23,588,675 | | | 24,605,819 | |
| | 3.5000%, TBA, 30 Year Maturity | | 21,330,121 | | | 22,390,868 | |
| | 4.0000%, TBA, 30 Year Maturity | | 16,054,402 | | | 16,947,990 | |
| | | 119,023,050 | |
Ginnie Mae I Pool: | | | |
| | 4.5000%, 8/15/46 | | 16,149 | | | 18,210 | |
| | 4.0000%, 7/15/47 | | 6,250 | | | 6,828 | |
| | 4.0000%, 8/15/47 | | 1,050 | | | 1,147 | |
| | 4.0000%, 11/15/47 | | 2,685 | | | 2,934 | |
| | 4.0000%, 12/15/47 | | 3,325 | | | 3,633 | |
| | | 32,752 | |
Ginnie Mae II Pool: | | | |
| | 4.5000%, 2/20/48 | | 223,965 | | | 241,557 | |
| | 4.5000%, 5/20/48 | | 6,082 | | | 6,615 | |
| | 4.5000%, 5/20/48 | | 1,211 | | | 1,317 | |
| | | 249,489 | |
Total Mortgage-Backed Securities (cost $557,627,212) | | 560,133,334 | |
Common Stocks– 0.4% | | | |
Containers & Packaging – 0.2% | | | |
| | Crown Holdings Inc | | 46,283 | | | 4,730,585 | |
Metals & Mining – 0.1% | | | |
| | Freeport-McMoRan Inc | | 123,387 | | | 4,578,892 | |
Semiconductor & Semiconductor Equipment – 0.1% | | | |
| | Entegris Inc | | 32,159 | | | 3,954,592 | |
Total Common Stocks (cost $12,830,390) | | 13,264,069 | |
Preferred Stocks– 1.5% | | | |
Consumer Cyclical – 0% | | | |
| | Quiksilver Inc¢ | | 12,688 | | | 10,785 | |
Electric Utilities – 0.1% | | | |
| | American Electric Power Co Inc, Convertible, 6.1250%, 8/15/23 | | 37,583 | | | 1,922,746 | |
Finance Companies – 0.2% | | | |
| | Castlelake Aircraft Securitization Trust 2018-1, 6/15/43 (144A)‡ | | 1,000,000 | | | 280,000 | |
| | Prosper Pass-Thru Trust II Series 2019-St1, 7/15/25 (144A) | | 27,926,764 | | | 1,774,383 | |
| | Upstart Securitization Trust 2019-3, 1/21/30 (144A) | | 8,250 | | | 2,662,301 | |
| | Upstart Securitization Trust 2021-1 CERT, 3/20/31 (144A) | | 1,989 | | | 984,004 | |
| | | 5,700,688 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
20 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Preferred Stocks– (continued) | | | |
Health Care Equipment & Supplies – 0.4% | | | |
| | Becton Dickinson and Co, Convertible, 6.0000%, 6/1/23# | | 94,450 | | | $5,054,019 | |
| | Boston Scientific Corp, Convertible, 5.5000%, 6/1/23 | | 59,100 | | | 6,820,140 | |
| | | 11,874,159 | |
Industrial – 0.1% | | | |
| | Project Silver, 3/15/44 (144A)‡ | | 1,500,000 | | | 412,500 | |
| | START Ireland, 3/15/44 (144A)‡ | | 1,500,000 | | | 401,250 | |
| | Thunderbolt II Aircraft Lease Ltd, 9/15/38 (144A) | | 10 | | | 602,323 | |
| | Thunderbolt III Aircraft Lease Ltd, 11/15/39 (144A)‡ | | 5,000,000 | | | 1,150,000 | |
| | | 2,566,073 | |
Professional Services – 0.3% | | | |
| | Clarivate PLC, Convertible, 5.2500%, 6/1/24 | | 91,200 | | | 9,503,040 | |
Student Loan – 0.2% | | | |
| | SoFi Professional Loan Program 2017-E LLC, 11/26/40 (144A) | | 25,000 | | | 595,735 | |
| | SoFi Professional Loan Program 2017-F LLC, 1/25/41 (144A) | | 35,000 | | | 980,634 | |
| | SoFi Professional Loan Program 2018-C Trust, 1/25/48 (144A) | | 58,000 | | | 1,465,266 | |
| | SoFi Professional Loan Program 2018-D Trust, 2/25/48 (144A) | | 76,000 | | | 1,345,641 | |
| | SoFi Professional Loan Program 2019-B LLC, 8/17/48 (144A) | | 70,900 | | | 1,419,865 | |
| | SoFi Professional Loan Program 2020-A Trust, 5/15/46 (144A) | | 34,000 | | | 1,816,317 | |
| | | 7,623,458 | |
Wireless Telecommunication Services – 0.2% | | | |
| | 2020 Cash Mandatory Exchangeable Trust, Convertible, 5.2500%, 6/1/23 (144A) | | 5,561 | | | 7,007,305 | |
Total Preferred Stocks (cost $64,603,714) | | 46,208,254 | |
Investment Companies– 6.9% | | | |
Money Markets – 6.9% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº,£((cost $217,736,197) | | 217,717,149 | | | 217,738,920 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.2% | | | |
Investment Companies – 0.1% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 4,455,764 | | | 4,455,764 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.0500%, 7/1/21 | | $2,276,536 | | | 2,276,536 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $6,732,300) | | 6,732,300 | |
Total Investments (total cost $3,588,915,867) – 114.3% | | 3,620,981,470 | |
Liabilities, net of Cash, Receivables and Other Assets – (14.3)% | | (451,607,250) | |
Net Assets – 100% | | $3,169,374,220 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $3,096,231,805 | | 85.5 | % |
Cayman Islands | | 345,131,225 | | 9.5 | |
Luxembourg | | 51,461,613 | | 1.4 | |
United Kingdom | | 36,014,758 | | 1.0 | |
Germany | | 21,689,204 | | 0.6 | |
Peru | | 14,353,147 | | 0.4 | |
Panama | | 11,510,167 | | 0.3 | |
Burkina Faso | | 7,202,343 | | 0.2 | |
Czech Republic | | 7,011,745 | | 0.2 | |
Israel | | 6,521,770 | | 0.2 | |
Sweden | | 5,539,815 | | 0.2 | |
France | | 4,361,885 | | 0.1 | |
Italy | | 4,145,716 | | 0.1 | |
Macao | | 3,398,117 | | 0.1 | |
Switzerland | | 3,257,057 | | 0.1 | |
Ireland | | 2,749,853 | | 0.1 | |
Bermuda | | 401,250 | | 0.0 | |
| | | | | | |
| | | | | | |
Total | | $3,620,981,470 | | 100.0 | % |
Schedule of TBA Sales Commitments – (% of Net Assets)
| | | | | | | | |
Principal Amount | | | Value | |
TBA Sales Commitments – (1.8)% | | | |
Mortgage-Backed Securities Sold Short – (1.8)% | | | |
Fannie Mae: | | | |
| | 2.0000%, TBA, 30 Year Maturityƒ (proceeds $56,314,359) | | $55,850,754 | | | $(56,417,639) | |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 6/30/21 |
Investment Companies - 6.9% |
Money Markets - 6.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | $ | 143,839 | $ | (890) | $ | 2,723 | $ | 217,738,920 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 37,375∆ | | - | | - | | 4,455,764 |
Total Affiliated Investments - 7.0% | $ | 181,214 | $ | (890) | $ | 2,723 | $ | 222,194,684 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
22 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 6.9% |
Money Markets - 6.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | | 73,446,272 | | 1,764,517,194 | | (1,620,226,379) | | 217,738,920 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 1,648,112 | | 77,862,641 | | (75,054,989) | | 4,455,764 |
| | | | | | | |
Schedule of Forward Foreign Currency Exchange Contracts | | | | | | |
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Bank of America, National Association: | | | | | | | | |
British Pound | 9/2/21 | (28,400) | $ | 40,052 | $ | 767 | | |
Euro | 9/2/21 | (41,546,000) | | 50,441,829 | | 1,120,629 | | |
Euro | 9/10/21 | (4,505,625) | | 5,448,427 | | 98,671 | | |
| | | | | | | | | |
| | | | | | | 1,220,067 | | |
Barclays Capital, Inc.: | | | | | | | | |
British Pound | 9/2/21 | (140,600) | | 198,277 | | 3,790 | | |
Euro | 9/2/21 | (8,462,400) | | 10,273,624 | | 227,513 | | |
| | | | | | | | | |
| | | | | | | 231,303 | | |
BNP Paribas: | | | | | | | | |
Euro | 9/2/21 | (718,000) | | 871,867 | | 19,496 | | |
Citibank, National Association: | | | | | | | | |
British Pound | 9/2/21 | (200,900) | | 283,346 | | 5,447 | | |
Euro | 9/2/21 | 2,865,700 | | (3,479,051) | | (77,044) | | |
| | | | | | | | | |
| | | | | | | (71,597) | | |
HSBC Securities (USA), Inc.: | | | | | | | | |
British Pound | 9/2/21 | (870,000) | | 1,226,737 | | 23,294 | | |
Euro | 9/2/21 | 3,129,082 | | (3,796,798) | | (82,119) | | |
| | | | | | | | | |
| | | | | | | (58,825) | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
British Pound | 9/2/21 | 695,400 | | (980,744) | | (18,819) | | |
Euro | 9/2/21 | (23,883,200) | | 28,992,414 | | 639,549 | | |
| | | | | | | | | |
| | | | | | | 620,730 | | |
Total | | | | | $ | 1,961,174 | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
Schedule of Futures
| | | | | | | | | | | | | | |
Description | | Number of Contracts | | Expiration Date | | Value and Notional Amount | | Unrealized Appreciation/ (Depreciation) | | Variation Margin Asset/(Liability) | | |
Futures Purchased: | | | | | | | | | | | | |
2 Year US Treasury Note | | 673 | | 10/5/21 | $ | 148,275,570 | $ | (239,916) | $ | 15,772 | |
5 Year US Treasury Note | | 5,507 | | 10/5/21 | | 679,727,292 | | (1,633,960) | | 344,188 | |
Total - Futures Purchased | | | | | | | | (1,873,876) | | 359,960 | | |
Futures Sold: | | | | | | | | | | | | |
10 Year US Treasury Note | | 400 | | 9/30/21 | | (53,000,000) | | (300,000) | | (93,750) | |
Ultra 10-Year Treasury Note | | 1,254 | | 9/30/21 | | (184,592,719) | | (3,242,765) | | (607,406) | |
US Treasury Long Bond | | 66 | | 9/30/21 | | (10,609,500) | | (305,160) | | (43,313) | |
Total - Futures Sold | | | | | | | | (3,847,925) | | (744,469) | | |
Total | | | | | | | $ | (5,721,801) | $ | (384,509) | | |
| | | | | | | | | | | | | | |
Schedule of Centrally Cleared Interest Rate Swaps |
Payments made by Fund | Payments received by Fund | Payment Frequency | | Maturity Date | | Notional Amount | | | Premiums Paid/ (Received) | | Unrealized Appreciation/ (Depreciation) | | Variation Margin Asset/(Liability) |
1.6590% Fixed Rate | ICE LIBOR USD 3M | Semiannual | | 8/23/49 | | 22,000,000 | USD | $ | 750 | $ | 334,574 | $ | (341,033) |
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of June 30, 2021.
| | | | | | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of June 30, 2021 |
| | | | | | | | | |
| | | | | Currency
Contracts | | Interest Rate
Contracts | | Total |
Asset Derivatives: | | | | | | | |
Forward foreign currency exchange contracts | | | $2,139,156 | | $ - | | $2,139,156 |
Variation margin receivable on futures contracts | | | - | | 359,960 | | 359,960 |
| | | | | | | | |
Total Asset Derivatives | | | $2,139,156 | | $ 359,960 | | $2,499,116 |
Liability Derivatives: | | | | | | | |
Forward foreign currency exchange contracts | | | $ 177,982 | | $ - | | $ 177,982 |
Variation margin payable on futures contracts | | | - | | 744,469 | | 744,469 |
Variation margin payable on swaps | | | - | | 341,033 | | 341,033 |
| | | | | | | | |
Total Liability Derivatives | | | $ 177,982 | | $ 1,085,502 | | $1,263,484 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
24 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Schedule of Investments
June 30, 2021
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended June 30, 2021.
| | | | | | | | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended June 30, 2021 |
| | | | | | | | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Credit
Contracts | | Currency
Contracts | | Interest Rate
Contracts | | Total |
Futures contracts | | $ - | | $ 568,200 | | $ 1,861,572 | | $ 2,429,772 |
Forward foreign currency exchange contracts | | - | | (9,713,889) | | - | | (9,713,889) |
Swap contracts | | 508,683 | | - | | (307,812) | | 200,871 |
| | | | | | | | | | | |
Total | | $508,683 | | $(9,145,689) | | $ 1,553,760 | | $(7,083,246) |
| | | | | | | | | | | |
| | | | | | | | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Credit
Contracts | | Currency
Contracts | | Interest Rate
Contracts | | Total |
Futures contracts | | $ - | | $ (557,813) | | $ (6,021,434) | | $(6,579,247) |
Forward foreign currency exchange contracts | | - | | 4,975,694 | | - | | 4,975,694 |
Swap contracts | | - | | - | | 4,794,749 | | 4,794,749 |
| | | | | | | | | | | |
Total | | $ - | | $ 4,417,881 | | $ (1,226,685) | | $ 3,191,196 |
Please see the "Net Realized Gain/(Loss) on Investments" "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
Average Ending Monthly Market Value of Derivative Instruments During the Year Ended June 30, 2021 |
| |
| Market Value(a) |
Credit default swaps, buy protection | $ (175,618) |
Forward foreign currency exchange contracts, purchased | 12,681,096 |
Forward foreign currency exchange contracts, sold | 116,028,402 |
Futures contracts, purchased | 753,444,300 |
Futures contracts, sold | 175,002,029 |
Interest rate swaps, pay fixed rate/receive floating rate | (1,093,572) |
| | |
(a) Forward foreign currency exchange contracts are reported as the average ending monthly currency amount purchased or sold. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Multi-Sector Income Fund
Notes to Schedule of Investments and Other Information
| | |
Bloomberg Barclays U.S. Aggregate Bond Index | Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based measure of the investment grade, US dollar-denominated, fixed-rate taxable bond market. |
| | |
ICE | Intercontinental Exchange |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
SOFR | Secured Overnight Financing Rate |
TBA | (To Be Announced) Securities are purchased/sold on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement when specific mortgage pools are assigned. |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the year ended June 30, 2021 is $2,046,343,670, which represents 64.6% of net assets. |
| | |
ƒ | All or a portion of this position is not funded, or has been purchased on a delayed delivery or when-issued basis. If applicable, interest rates will be determined and interest will begin to accrue at a future date. See Notes to Financial Statements. |
| | |
‡ | Variable or floating rate security. Rate shown is the current rate as of June 30, 2021. Certain variable rate securities are not based on a published reference rate and spread; they are determined by the issuer or agent and current market conditions. Reference rate is as of reset date and may vary by security, which may not indicate a reference rate and/or spread in their description. |
| | |
ºº | Rate shown is the 7-day yield as of June 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at June 30, 2021. |
| | |
µ | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. The date indicated, if any, represents the next call date. |
| | |
Ç | Step bond. The coupon rate will increase or decrease periodically based upon a predetermined schedule. The rate shown reflects the current rate. |
| | |
¤ | Interest only security. An interest only security represents the interest only portion of a pool of underlying mortgages or mortgage-backed securities which are separated and sold individually from the principal portion of the securities. Principal amount shown represents the par value on which interest payments are based. |
| | |
Ø | Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended June 30, 2021 is $12,122, which represents 0.0% of net assets. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Henderson Multi-Sector Income Fund
Notes to Schedule of Investments and Other Information
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Asset-Backed/Commercial Mortgage-Backed Securities | $ | - | $ | 1,398,940,981 | $ | - |
Bank Loans and Mezzanine Loans | | - | | 275,252,238 | | 1,337 |
Corporate Bonds | | - | | 1,102,710,037 | | - |
Mortgage-Backed Securities | | - | | 560,133,334 | | - |
Common Stocks | | 13,264,069 | | - | | - |
Preferred Stocks | | - | | 46,197,469 | | 10,785 |
Investment Companies | | - | | 217,738,920 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 6,732,300 | | - |
Total Investments in Securities | $ | 13,264,069 | $ | 3,607,705,279 | $ | 12,122 |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 2,139,156 | | - |
Variation Margin Receivable on Futures Contracts | | 359,960 | | - | | - |
Total Assets | $ | 13,624,029 | $ | 3,609,844,435 | $ | 12,122 |
Liabilities | | | | | | |
TBA Sales Commitments: | | | | | | |
Mortgage-Backed Securities | $ | - | $ | 56,417,639 | $ | - |
Total TBA Sales Commitments | $ | - | $ | 56,417,639 | $ | - |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 177,982 | | - |
Variation Margin Payable on Futures Contracts | | 744,469 | | - | | - |
Variation Margin Payable on Swaps | | - | | 341,033 | | - |
Total Liabilities | $ | 744,469 | $ | 56,936,654 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Futures, certain written options on futures, and centrally cleared swap contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Written options, written swaptions, and other swap contracts are reported at their market value at measurement date. |
Janus Henderson Multi-Sector Income Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,366,723,906)(1) | | $ | 3,398,786,786 | |
| Affiliated investments, at value (cost $222,191,961) | | | 222,194,684 | |
| Cash | | | 757,296 | |
| Deposits with brokers for centrally cleared derivatives | | | 2,983,496 | |
| Deposits with brokers for futures | | | 2,840,000 | |
| Forward foreign currency exchange contracts | | | 2,139,156 | |
| Cash denominated in foreign currency (cost $391,926) | | | 391,926 | |
| Receivable for variation margin on futures contracts | | | 359,960 | |
| Non-interested Trustees' deferred compensation | | | 76,982 | |
| Receivables: | | | | |
| | Investments sold | | | 60,090,255 | |
| | TBA investments sold | | | 56,314,359 | |
| | Interest | | | 19,060,527 | |
| | Fund shares sold | | | 10,586,223 | |
| | Dividends from affiliates | | | 13,556 | |
| Other assets | | | 3,304,685 | |
Total Assets | | | 3,779,899,891 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 6,732,300 | |
| TBA sales commitments, at value (proceeds $56,314,359) | | | 56,417,639 | |
| Forward foreign currency exchange contracts | | | 177,982 | |
| Payable for variation margin on futures contracts | | | 744,469 | |
| | Payable for variation margin on swaps | | | 341,033 | |
| Payables: | | | — | |
| | TBA investments purchased | | | 382,694,359 | |
| | Investments purchased | | | 149,848,665 | |
| | Fund shares repurchased | | | 10,941,794 | |
| | Advisory fees | | | 1,420,159 | |
| | Dividends | | | 391,882 | |
| | Transfer agent fees and expenses | | | 361,554 | |
| | Non-interested Trustees' deferred compensation fees | | | 76,982 | |
| | Professional fees | | | 73,029 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 70,967 | |
| | Non-interested Trustees' fees and expenses | | | 10,553 | |
| | Affiliated fund administration fees payable | | | 6,381 | |
| | Custodian fees | | | 5,131 | |
| | Accrued expenses and other payables | | | 210,792 | |
Total Liabilities | | | 610,525,671 | |
Net Assets | | $ | 3,169,374,220 | |
| | |
See Notes to Financial Statements. |
| |
28 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,115,200,812 | |
| Total distributable earnings (loss) | | | 54,173,408 | |
Total Net Assets | | $ | 3,169,374,220 | |
Net Assets - Class A Shares | | $ | 67,031,874 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,624,687 | |
Net Asset Value Per Share(2) | | $ | 10.12 | |
Maximum Offering Price Per Share(3) | | $ | 10.62 | |
Net Assets - Class C Shares | | $ | 71,132,871 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 7,028,076 | |
Net Asset Value Per Share(2) | | $ | 10.12 | |
Net Assets - Class D Shares | | $ | 108,418,116 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,711,622 | |
Net Asset Value Per Share | | $ | 10.12 | |
Net Assets - Class I Shares | | $ | 2,570,288,983 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 253,991,640 | |
Net Asset Value Per Share | | $ | 10.12 | |
Net Assets - Class N Shares | | $ | 121,983,019 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,054,051 | |
Net Asset Value Per Share | | $ | 10.12 | |
Net Assets - Class S Shares | | $ | 745,434 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 73,704 | |
Net Asset Value Per Share | | $ | 10.11 | |
Net Assets - Class T Shares | | $ | 229,773,923 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 22,715,538 | |
Net Asset Value Per Share | | $ | 10.12 | |
| |
(1) Includes $6,591,003 of securities on loan. See Note 3 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/95.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 29 |
Janus Henderson Multi-Sector Income Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Interest | $ | 115,517,128 | |
| Dividends | | 12,318,532 | |
| Dividends from affiliates | | 143,839 | |
| Affiliated securities lending income, net | | 37,375 | |
| Unaffiliated securities lending income, net | | 806 | |
| Other income | | 855,512 | |
Total Investment Income | | 128,873,192 | |
Expenses: | | | |
| Advisory fees | | 14,912,493 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 144,540 | |
| | Class C Shares | | 644,829 | |
| | Class S Shares | | 1,332 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 105,422 | |
| | Class S Shares | | 2,249 | |
| | Class T Shares | | 729,342 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 31,242 | |
| | Class C Shares | | 50,001 | |
| | Class I Shares | | 1,806,912 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 3,549 | |
| | Class C Shares | | 3,358 | |
| | Class D Shares | | 11,617 | |
| | Class I Shares | | 87,443 | |
| | Class N Shares | | 3,141 | |
| | Class S Shares | | 29 | |
| | Class T Shares | | 2,708 | |
| Professional fees | | 272,092 | |
| Shareholder reports expense | | 206,837 | |
| Registration fees | | 176,306 | |
| Affiliated fund administration fees | | 75,826 | |
| Non-interested Trustees’ fees and expenses | | 46,000 | |
| Custodian fees | | 34,940 | |
| Other expenses | | 217,290 | |
Total Expenses | | 19,569,498 | |
Less: Excess Expense Reimbursement and Waivers | | (47,283) | |
Net Expenses | | 19,522,215 | |
Net Investment Income/(Loss) | | 109,350,977 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
30 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 84,240,027 | |
| Investments in affiliates | | (890) | |
| Forward foreign currency exchange contracts | | (9,713,889) | |
| Futures contracts | | 2,429,772 | |
| Swap contracts | | 200,871 | |
| Net increase from payment by affiliate and disposal of investments in violation of restrictions (Note 4) | 1,419,599 | |
Total Net Realized Gain/(Loss) on Investments | | 78,575,490 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 90,315,539 | |
| Investments in affiliates | | 2,723 | |
| Forward foreign currency exchange contracts | | 4,975,694 | |
| Futures contracts | | (6,579,247) | |
| TBA sales commitments | | (103,280) | |
| Swap contracts | | 4,794,749 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 93,406,178 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 281,332,645 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 31 |
Janus Henderson Multi-Sector Income Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 109,350,977 | | $ | 86,663,446 | |
| Net realized gain/(loss) on investments | | 78,575,490 | | | (33,027,534) | |
| Change in unrealized net appreciation/depreciation | | 93,406,178 | | | (82,588,840) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 281,332,645 | | | (28,952,928) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (2,383,996) | | | (999,403) | |
| | Class C Shares | | (2,293,328) | | | (1,312,676) | |
| | Class D Shares | | (3,952,607) | | | (3,036,623) | |
| | Class I Shares | | (89,743,409) | | | (80,480,498) | |
| | Class N Shares | | (4,655,898) | | | (16,054) | |
| | Class S Shares | | (37,044) | | | 960,986 | |
| | Class T Shares | | (12,349,661) | | | (11,936,872) | |
| Total Dividends and Distributions to Shareholders | | (115,415,943) | | | (96,821,140) | |
| Return of Capital Dividends and Distributions | | | | | | |
| | Class A Shares | | — | | | (1,034,132) | |
| | Class C Shares | | — | | | (862,433) | |
| | Class D Shares | | — | | | (1,069,915) | |
| | Class I Shares | | — | | | (1,082,132) | |
| | Class N Shares | | — | | | (1,100,152) | |
| | Class S Shares | | — | | | (999,130) | |
| | Class T Shares | | — | | | (1,048,448) | |
| Total Return of Capital Dividends and Distributions | | — | | | (7,196,342) | |
Net Decrease from Dividends and Distributions to Shareholders | | (115,415,943) | | | (104,017,482) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 14,195,757 | | | 31,441,343 | |
| | Class C Shares | | 3,186,101 | | | 36,487,307 | |
| | Class D Shares | | 24,735,614 | | | 25,913,391 | |
| | Class I Shares | | 637,421,757 | | | 994,040,337 | |
| | Class N Shares | | 27,555,092 | | | 81,717,657 | |
| | Class S Shares | | (308,332) | | | 357,557 | |
| | Class T Shares | | (75,137,201) | | | 160,582,256 | |
Net Increase/(Decrease) from Capital Share Transactions | | 631,648,788 | | | 1,330,539,848 | |
Net Increase/(Decrease) in Net Assets | | 797,565,490 | | | 1,197,569,438 | |
Net Assets: | | | | | | |
| Beginning of period | | 2,371,808,730 | | | 1,174,239,292 | |
| End of period | $ | 3,169,374,220 | | $ | 2,371,808,730 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
32 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $9.47 | | | $9.89 | | | $9.66 | | | $9.83 | | | $9.72 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.39 | | | 0.40 | | | 0.42 | | | 0.40 | | | 0.45 | |
| | Net realized and unrealized gain/(loss) | | 0.67 | | | (0.34) | | | 0.25 | | | (0.08) | | | 0.19 | |
| Total from Investment Operations | | 1.06 | | | 0.06 | | | 0.67 | | | 0.32 | | | 0.64 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.41) | | | (0.40) | | | (0.44) | | | (0.43) | | | (0.51) | |
| | Distributions (from capital gains) | | — | | | (0.05) | | | — | | | (0.06) | | | (0.02) | |
| | Return of capital | | — | | | (0.03) | | | — | | | — | | | — | |
| Total Dividends and Distributions | | (0.41) | | | (0.48) | | | (0.44) | | | (0.49) | | | (0.53) | |
| Net Asset Value, End of Period | | $10.12 | | | $9.47 | | | $9.89 | | | $9.66 | | | $9.83 | |
| Total Return* | | 11.38%(2) | | | 0.61% | | | 7.11% | | | 3.20% | | | 6.78% | |
| Net Assets, End of Period (in thousands) | | $67,032 | | | $49,168 | | | $20,276 | | | $15,697 | | | $8,412 | |
| Average Net Assets for the Period (in thousands) | | $57,669 | | | $40,103 | | | $14,907 | | | $13,616 | | | $10,263 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.92% | | | 1.05% | | | 1.11% | | | 1.20% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.91% | | | 0.92% | | | 1.00% | | | 0.99% | | | 0.96% | |
| | Ratio of Net Investment Income/(Loss) | | 3.91% | | | 4.19% | | | 4.35% | | | 4.16% | | | 4.60% | |
| Portfolio Turnover Rate | | 119%(3) | | | 188%(3) | | | 142%(3) | | | 194%(3) | | | 139% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $9.47 | | | $9.89 | | | $9.67 | | | $9.84 | | | $9.72 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.32 | | | 0.33 | | | 0.35 | | | 0.33 | | | 0.38 | |
| | Net realized and unrealized gain/(loss) | | 0.67 | | | (0.35) | | | 0.23 | | | (0.09) | | | 0.20 | |
| Total from Investment Operations | | 0.99 | | | (0.02) | | | 0.58 | | | 0.24 | | | 0.58 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.34) | | | (0.33) | | | (0.36) | | | (0.35) | | | (0.44) | |
| | Distributions (from capital gains) | | — | | | (0.05) | | | — | | | (0.06) | | | (0.02) | |
| | Return of capital | | — | | | (0.02) | | | — | | | — | | | — | |
| Total Dividends and Distributions | | (0.34) | | | (0.40) | | | (0.36) | | | (0.41) | | | (0.46) | |
| Net Asset Value, End of Period | | $10.12 | | | $9.47 | | | $9.89 | | | $9.67 | | | $9.84 | |
| Total Return* | | 10.58%(4) | | | (0.18)% | | | 6.20% | | | 2.40% | | | 6.11% | |
| Net Assets, End of Period (in thousands) | | $71,133 | | | $63,574 | | | $30,350 | | | $18,101 | | | $5,056 | |
| Average Net Assets for the Period (in thousands) | | $67,010 | | | $50,662 | | | $20,980 | | | $12,273 | | | $4,598 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.64% | | | 1.71% | | | 1.79% | | | 1.90% | | | 1.94% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.64% | | | 1.71% | | | 1.76% | | | 1.79% | | | 1.69% | |
| | Ratio of Net Investment Income/(Loss) | | 3.19% | | | 3.43% | | | 3.60% | | | 3.40% | | | 3.93% | |
| Portfolio Turnover Rate | | 119%(3) | | | 188%(3) | | | 142%(3) | | | 194%(3) | | | 139% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) 0.01% of the Fund’s total return consists of a voluntary reimbursement by Janus Capital for realized investment losses and another 0.04% consists of a gain on an investment not meeting the investment guidelines of the Fund. Excluding these items, total return would have been 11.33%. See Note 4 in the Notes to the Financial Statements. (3) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. (4) 0.01% of the Fund’s total return consists of a voluntary reimbursement by Janus Capital for realized investment losses and another 0.04% consists of a gain on an investment not meeting the investment guidelines of the Fund. Excluding these items, total return would have been 10.53%. See Note 4 in the Notes to the Financial Statements. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 33 |
Janus Henderson Multi-Sector Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $9.47 | | | $9.89 | | | $9.67 | | | $9.84 | | | $9.72 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.40 | | | 0.42 | | | 0.44 | | | 0.43 | | | 0.48 | |
| | Net realized and unrealized gain/(loss) | | 0.68 | | | (0.35) | | | 0.23 | | | (0.10) | | | 0.19 | |
| Total from Investment Operations | | 1.08 | | | 0.07 | | | 0.67 | | | 0.33 | | | 0.67 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.43) | | | (0.41) | | | (0.45) | | | (0.44) | | | (0.53) | |
| | Distributions (from capital gains) | | — | | | (0.05) | | | — | | | (0.06) | | | (0.02) | |
| | Return of capital | | — | | | (0.03) | | | — | | | — | | | — | |
| Total Dividends and Distributions | | (0.43) | | | (0.49) | | | (0.45) | | | (0.50) | | | (0.55) | |
| Net Asset Value, End of Period | | $10.12 | | | $9.47 | | | $9.89 | | | $9.67 | | | $9.84 | |
| Total Return* | | 11.57%(2) | | | 0.77% | | | 7.18% | | | 3.36% | | | 7.06% | |
| Net Assets, End of Period (in thousands) | | $108,418 | | | $78,091 | | | $57,522 | | | $31,328 | | | $24,575 | |
| Average Net Assets for the Period (in thousands) | | $91,918 | | | $79,433 | | | $42,770 | | | $28,932 | | | $16,919 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.74% | | | 0.76% | | | 0.88% | | | 0.98% | | | 1.07% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.74% | | | 0.76% | | | 0.84% | | | 0.84% | | | 0.80% | |
| | Ratio of Net Investment Income/(Loss) | | 4.07% | | | 4.30% | | | 4.54% | | | 4.36% | | | 4.89% | |
| Portfolio Turnover Rate | | 119%(3) | | | 188%(3) | | | 142%(3) | | | 194%(3) | | | 139% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $9.47 | | | $9.88 | | | $9.66 | | | $9.83 | | | $9.72 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.41 | | | 0.43 | | | 0.44 | | | 0.43 | | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | 0.67 | | | (0.34) | | | 0.24 | | | (0.09) | | | 0.18 | |
| Total from Investment Operations | | 1.08 | | | 0.09 | | | 0.68 | | | 0.34 | | | 0.67 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.43) | | | (0.42) | | | (0.46) | | | (0.45) | | | (0.54) | |
| | Distributions (from capital gains) | | — | | | (0.05) | | | — | | | (0.06) | | | (0.02) | |
| | Return of capital | | — | | | (0.03) | | | — | | | — | | | — | |
| Total Dividends and Distributions | �� | (0.43) | | | (0.50) | | | (0.46) | | | (0.51) | | | (0.56) | |
| Net Asset Value, End of Period | | $10.12 | | | $9.47 | | | $9.88 | | | $9.66 | | | $9.83 | |
| Total Return* | | 11.63%(4) | | | 0.93% | | | 7.25% | | | 3.46% | | | 7.06% | |
| Net Assets, End of Period (in thousands) | | $2,570,289 | | | $1,805,985 | | | $909,014 | | | $196,433 | | | $63,716 | |
| Average Net Assets for the Period (in thousands) | | $2,061,334 | | | $1,542,112 | | | $476,391 | | | $110,623 | | | $38,892 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.69% | | | 0.70% | | | 0.80% | | | 0.87% | | | 0.94% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.69% | | | 0.70% | | | 0.78% | | | 0.76% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | 4.13% | | | 4.42% | | | 4.59% | | | 4.45% | | | 5.00% | |
| Portfolio Turnover Rate | | 119%(3) | | | 188%(3) | | | 142%(3) | | | 194%(3) | | | 139% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) 0.01% of the Fund’s total return consists of a voluntary reimbursement by Janus Capital for realized investment losses and another 0.04% consists of a gain on an investment not meeting the investment guidelines of the Fund. Excluding these items, total return would have been 11.52%. See Note 4 in the Notes to the Financial Statements. (3) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. (4) 0.01% of the Fund’s total return consists of a voluntary reimbursement by Janus Capital for realized investment losses and another 0.04% consists of a gain on an investment not meeting the investment guidelines of the Fund. Excluding these items, total return would have been 11.58%. See Note 4 in the Notes to the Financial Statements. |
| | |
See Notes to Financial Statements. |
| |
34 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $9.47 | | | $9.89 | | | $9.67 | | | $9.84 | | | $9.72 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.42 | | | 0.44 | | | 0.45 | | | 0.44 | | | 0.48 | |
| | Net realized and unrealized gain/(loss) | | 0.67 | | | (0.36) | | | 0.24 | | | (0.09) | | | 0.20 | |
| Total from Investment Operations | | 1.09 | | | 0.08 | | | 0.69 | | | 0.35 | | | 0.68 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.44) | | | (0.42) | | | (0.47) | | | (0.46) | | | (0.54) | |
| | Distributions (from capital gains) | | — | | | (0.05) | | | — | | | (0.06) | | | (0.02) | |
| | Return of capital | | — | | | (0.03) | | | — | | | — | | | — | |
| Total Dividends and Distributions | | (0.44) | | | (0.50) | | | (0.47) | | | (0.52) | | | (0.56) | |
| Net Asset Value, End of Period | | $10.12 | | | $9.47 | | | $9.89 | | | $9.67 | | | $9.84 | |
| Total Return* | | 11.73%(2) | | | 0.90% | | | 7.32% | | | 3.51% | | | 7.21% | |
| Net Assets, End of Period (in thousands) | | $121,983 | | | $88,092 | | | $6,763 | | | $2,696 | | | $1,553 | |
| Average Net Assets for the Period (in thousands) | | $104,964 | | | $20,729 | | | $3,933 | | | $2,017 | | | $2,474 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.60% | | | 0.63% | | | 0.80% | | | 0.84% | | | 0.90% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.60% | | | 0.63% | | | 0.71% | | | 0.69% | | | 0.65% | |
| | Ratio of Net Investment Income/(Loss) | | 4.21% | | | 4.68% | | | 4.67% | | | 4.50% | | | 4.90% | |
| Portfolio Turnover Rate | | 119%(3) | | | 188%(3) | | | 142%(3) | | | 194%(3) | | | 139% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $9.46 | | | $9.91 | | | $9.67 | | | $9.84 | | | $9.72 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.39 | | | 0.39 | | | 0.43 | | | 0.40 | | | 0.44 | |
| | Net realized and unrealized gain/(loss) | | 0.67 | | | (0.37) | | | 0.27 | | | (0.09) | | | 0.21 | |
| Total from Investment Operations | | 1.06 | | | 0.02 | | | 0.70 | | | 0.31 | | | 0.65 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.41) | | | (0.39) | | | (0.46) | | | (0.42) | | | (0.51) | |
| | Distributions (from capital gains) | | — | | | (0.05) | | | — | | | (0.06) | | | (0.02) | |
| | Return of capital | | — | | | (0.03) | | | — | | | — | | | — | |
| Total Dividends and Distributions | | (0.41) | | | (0.47) | | | (0.46) | | | (0.48) | | | (0.53) | |
| Net Asset Value, End of Period | | $10.11 | | | $9.46 | | | $9.91 | | | $9.67 | | | $9.84 | |
| Total Return* | | 11.32%(4) | | | 0.19% | | | 7.51% | | | 3.12% | | | 6.82% | |
| Net Assets, End of Period (in thousands) | | $745 | | | $987 | | | $652 | | | $1,228 | | | $1,115 | |
| Average Net Assets for the Period (in thousands) | | $898 | | | $775 | | | $908 | | | $1,181 | | | $1,703 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.33% | | | 1.43% | | | 1.36% | | | 1.37% | | | 1.40% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.98% | | | 1.03% | | | 0.89% | | | 1.07% | | | 1.02% | |
| | Ratio of Net Investment Income/(Loss) | | 3.88% | | | 4.05% | | | 4.47% | | | 4.13% | | | 4.51% | |
| Portfolio Turnover Rate | | 119%(3) | | | 188%(3) | | | 142%(3) | | | 194%(3) | | | 139% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) 0.01% of the Fund’s total return consists of a voluntary reimbursement by Janus Capital for realized investment losses and another 0.04% consists of a gain on an investment not meeting the investment guidelines of the Fund. Excluding these items, total return would have been 11.68%. See Note 4 in the Notes to the Financial Statements. (3) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. (4) 0.01% of the Fund’s total return consists of a voluntary reimbursement by Janus Capital for realized investment losses and another 0.04% consists of a gain on an investment not meeting the investment guidelines of the Fund. Excluding these items, total return would have been 11.27%. See Note 4 in the Notes to the Financial Statements. |
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See Notes to Financial Statements. |
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Janus Investment Fund | 35 |
Janus Henderson Multi-Sector Income Fund
Financial Highlights
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Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $9.47 | | | $9.89 | | | $9.66 | | | $9.83 | | | $9.71 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.40 | | | 0.41 | | | 0.42 | | | 0.41 | | | 0.47 | |
| | Net realized and unrealized gain/(loss) | | 0.67 | | | (0.35) | | | 0.25 | | | (0.09) | | | 0.19 | |
| Total from Investment Operations | | 1.07 | | | 0.06 | | | 0.67 | | | 0.32 | | | 0.66 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.42) | | | (0.40) | | | (0.44) | | | (0.43) | | | (0.52) | |
| | Distributions (from capital gains) | | — | | | (0.05) | | | — | | | (0.06) | | | (0.02) | |
| | Return of capital | | — | | | (0.03) | | | — | | | — | | | — | |
| Total Dividends and Distributions | | (0.42) | | | (0.48) | | | (0.44) | | | (0.49) | | | (0.54) | |
| Net Asset Value, End of Period | | $10.12 | | | $9.47 | | | $9.89 | | | $9.66 | | | $9.83 | |
| Total Return* | | 11.47%(2) | | | 0.67% | | | 7.17% | | | 3.26% | | | 6.97% | |
| Net Assets, End of Period (in thousands) | | $229,774 | | | $285,912 | | | $149,662 | | | $75,614 | | | $17,117 | |
| Average Net Assets for the Period (in thousands) | | $291,205 | | | $250,371 | | | $105,637 | | | $47,107 | | | $10,244 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.85% | | | 0.86% | | | 0.98% | | | 1.06% | | | 1.15% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.83% | | | 0.86% | | | 0.95% | | | 0.94% | | | 0.88% | |
| | Ratio of Net Investment Income/(Loss) | | 4.01% | | | 4.27% | | | 4.42% | | | 4.26% | | | 4.84% | |
| Portfolio Turnover Rate | | 119%(3) | | | 188%(3) | | | 142%(3) | | | 194%(3) | | | 139% | |
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* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) 0.01% of the Fund’s total return consists of a voluntary reimbursement by Janus Capital for realized investment losses and another 0.04% consists of a gain on an investment not meeting the investment guidelines of the Fund. Excluding these items, total return would have been 11.42%. See Note 4 in the Notes to the Financial Statements. (3) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
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See Notes to Financial Statements. |
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36 | JUNE 30, 2021 |
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Multi-Sector Income Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks high current income with a secondary focus on capital appreciation. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with United States of America generally accepted accounting principles ("US GAAP").
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
The Fund did not hold a significant amount of Level 3 securities as of June 30, 2021.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends are declared daily and distributed monthly for the Fund. Realized capital gains, if any, are declared and distributed in December. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the year ended June 30, 2021 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital's ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
shall be used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a forward currency contract is reported on the Statement of Operations (if applicable).
During the year, the Fund entered into forward currency contracts with the obligation to purchase foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
During the year, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts on commodities are valued at the settlement price on valuation date on the commodities exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used. Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
During the year, the Fund purchased interest rate futures to increase exposure to interest rate risk.
During the year, the Fund sold interest rate futures to decrease exposure to interest rate risk.
During the year, the Fund purchased futures on currency indices to increase exposure to currency risk.
During the year, the Fund sold futures on currency indices to decrease exposure to currency risk.
Swaps
Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a day to more than one year to exchange one set of cash flows for another. The most significant factor in the performance of swap agreements is the change in value of the specific index, security, or currency, or other factors that determine the amounts of payments due to and from the Fund. The use of swaps is a highly specialized activity which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. Swap transactions may in some instances involve the delivery of securities or other underlying assets by the Fund or its counterparty to collateralize obligations under the swap. If the other party to a swap that is not collateralized defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. Swap agreements entail the risk that a party will default on its payment obligations to the Fund. If the other party to a swap defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If the Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return.
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
Swap agreements also bear the risk that the Fund will not be able to meet its obligation to the counterparty. Swap agreements are typically privately negotiated and entered into in the OTC market. However, certain swap agreements are required to be cleared through a clearinghouse and traded on an exchange or swap execution facility. Swaps that are required to be cleared are required to post initial and variation margins in accordance with the exchange requirements. Regulations enacted require the Fund to centrally clear certain interest rate and credit default index swaps through a clearinghouse or central counterparty (“CCP”). To clear a swap with a CCP, the Fund will submit the swap to, and post collateral with, a futures clearing merchant (“FCM”) that is a clearinghouse member. Alternatively, the Fund may enter into a swap with a financial institution other than the FCM (the “Executing Dealer”) and arrange for the swap to be transferred to the FCM for clearing. The Fund may also enter into a swap with the FCM itself. The CCP, the FCM, and the Executing Dealer are all subject to regulatory oversight by the U.S. Commodity Futures Trading Commission (“CFTC”). A default or failure by a CCP or an FCM, or the failure of a swap to be transferred from an Executing Dealer to the FCM for clearing, may expose the Fund to losses, increase its costs, or prevent the Fund from entering or exiting swap positions, accessing collateral, or fully implementing its investment strategies. The regulatory requirement to clear certain swaps could, either temporarily or permanently, reduce the liquidity of cleared swaps or increase the costs of entering into those swaps.
Index swaps, interest rate swaps, inflation swaps and credit default swaps are valued using an approved vendor supplied price. Basket swaps are valued using a broker supplied price. Equity swaps that consist of a single underlying equity are valued either at the closing price, the latest bid price, or the last sale price on the primary market or exchange it trades. The market value of swap contracts are aggregated by positive and negative values and are disclosed separately as an asset or liability on the Fund’s Statement of Assets and Liabilities (if applicable). Realized gains and losses are reported on the Fund’s Statement of Operations (if applicable). The change in unrealized net appreciation or depreciation during the year is included in the Statement of Operations (if applicable).
The Fund’s maximum risk of loss from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund’s exposure to the counterparty.
The Fund may enter into various types of credit default swap agreements, including OTC credit default swap agreements, for investment purposes, to add leverage to its Fund, or to hedge against widening credit spreads on high-yield/high-risk bonds. Credit default swaps are a specific kind of counterparty agreement that allow 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. Credit default swaps could result in losses if the Fund does not correctly evaluate the creditworthiness of the company or companies on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject to illiquidity risk, counterparty risk, and credit risk. The Fund will generally incur a greater degree of risk when it sells a credit default swap than when it purchases a credit default swap. As a buyer of a credit default swap, the Fund may lose its investment and recover nothing should no credit event occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event were to occur, the value of any deliverable obligation received by the Fund, coupled with the upfront or periodic payments previously received, may be less than what it pays to the buyer, resulting in a loss of value to the Fund.
As a buyer of credit protection, the Fund is entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract in the event of a default or other credit event by a third party, such as a U.S. or foreign issuer, on the debt obligation. In return, the Fund as buyer would pay to the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no credit event occurs, the Fund would have spent the stream of payments and potentially received no benefit from the contract.
If the Fund is the seller of credit protection against a particular security, the Fund would receive an up-front or periodic payment to compensate against potential credit events. As the seller in a credit default swap contract, the Fund would be required to pay the par value (the “notional value”) (or other agreed-upon value) of a referenced debt obligation to the counterparty in the event of a default by a third party, such as a U.S. or foreign corporate issuer, on the debt obligation. In return, the Fund would receive from the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, the Fund would keep the stream of payments and would have no payment obligations. As the seller, the Fund would effectively add leverage to its portfolio
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional value of the swap. The maximum potential amount of future payments (undiscounted) that the Fund as a seller could be required to make in a credit default transaction would be the notional amount of the agreement.
The Fund may invest in CDXs. A CDX is a swap on an index of credit default swaps. CDXs allow an investor to manage credit risk or take a position on a basket of credit entities (such as credit default swaps or commercial mortgage-backed securities) in a more efficient manner than transacting in a single-name CDS. If a credit event occurs in one of the underlying companies, the protection is paid out via the delivery of the defaulted bond by the buyer of protection in return for a payment of notional value of the defaulted bond by the seller of protection or it may be settled through a cash settlement between the two parties. The underlying company is then removed from the index. If the Fund holds a long position in a CDX, the Fund would indirectly bear its proportionate share of any expenses paid by a CDX. A Fund holding a long position in CDXs typically receives income from principal or interest paid on the underlying securities. By investing in CDXs, the Fund could be exposed to illiquidity risk, counterparty risk, and credit risk of the issuers of the underlying loan obligations and of the CDX markets. If there is a default by the CDX counterparty, the Fund will have contractual remedies pursuant to the agreements related to the transaction. CDXs also bear the risk that the Fund will not be able to meet its obligation to the counterparty.
During the year, the Fund purchased protection via the credit default swap market in order to reduce credit risk exposure to individual corporates, countries and/or credit indices where reducing this exposure via the cash bond market was less attractive.
There were no credit default swaps held at June 30, 2021.
The Fund’s use of interest rate swaps involves investment techniques and risks different from those associated with ordinary portfolio security transactions. Interest rate swaps do not involve the delivery of securities, other underlying assets, or principal. 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). Interest rate swaps may result in potential losses if interest rates do not move as expected or if the counterparties are unable to satisfy their obligations. Interest rate swaps are generally entered into on a net basis. Accordingly, the risk of loss with respect to interest rate swaps is limited to the net amount of interest payments that the Fund is contractually obligated to make.
During the year, the Fund entered into interest rate swaps paying a fixed interest rate and receiving a floating interest rate in order to decrease interest rate risk (duration) exposure. As interest rates rise, the Fund benefits by receiving a higher expected future floating rate, while paying a fixed rate that has not increased.
3. Other Investments and Strategies
Additional Investment Risk
The Fund may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes, or adverse developments specific to the issuer.
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States.
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
LIBOR Replacement Risk
The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate (LIBOR) as a reference rate for various rate calculations. On July 27, 2017, the U.K. Financial Conduct Authority announced that it intends to stop compelling or inducing banks to submit LIBOR rates after 2021. However, it remains unclear if LIBOR will continue to exist in its current, or a modified, form. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Financing Rate (SOFR), that is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. However, global consensus on alternative rates is lacking. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could adversely impact (i) volatility and liquidity in markets that are tied to LIBOR, (ii) the market for, or value of, specific securities or payments linked to those reference rates, (iii) availability or terms of borrowing or refinancing, or (iv) the effectiveness of hedging strategies. For these and other reasons, the elimination of LIBOR or changes to other interest rates may adversely affect the Fund’s performance and/or net asset value. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021. Markets are slowly developing in response to these new rates. Uncertainty regarding the process for amending existing contracts or instruments to transition away from LIBOR remains a concern for the Fund. The effect of any changes to, or discontinuation of, LIBOR on the Fund will vary depending, among other things, on (1) existing fallback or termination provisions in individual contracts and (2) whether, how, and when industry participants develop and adopt new reference rates and fallbacks for both legacy and new products and instruments. Accordingly, it is difficult to predict the full impact of the transition away from LIBOR on the Fund until new reference rates and fallbacks for both legacy and new products, instruments and contracts are commercially accepted.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Loans
The Fund may invest in various commercial loans, including bank loans, bridge loans, debtor-in-possession (“DIP”) loans, mezzanine loans, and other fixed and floating rate loans. These loans may be acquired through loan participations and assignments or on a when-issued basis. Commercial loans will comprise no more than 50% of the Fund’s total assets. Below are descriptions of the types of loans held by the Fund as of June 30, 2021.
· Bank Loans - Bank loans are obligations of companies or other entities entered into in connection with recapitalizations, acquisitions, and refinancings. The Fund’s 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.
· Floating Rate Loans – Floating rate loans are debt securities that have floating interest rates, that adjust periodically, and are tied to a benchmark lending rate, such as London Interbank Offered Rate (“LIBOR”). In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (‘‘borrowers’’) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. While the Fund generally expects to invest in fully funded term loans, certain of the loans in which the Fund may invest include revolving loans, bridge loans, and delayed draw term loans.
Purchasers of floating rate loans may pay and/or receive certain fees. The Fund may receive fees such as covenant waiver fees or prepayment penalty fees. The Fund may pay fees such as facility fees. Such fees may affect the Fund’s return.
· Mezzanine Loans - Mezzanine loans are secured by the stock of the company that owns the assets. Mezzanine loans are a hybrid of debt and equity financing that is typically used to fund the expansion of existing companies. A mezzanine loan is composed of debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. Mezzanine loans typically are the most subordinated debt obligation in an issuer’s capital structure.
Mortgage- and Asset-Backed Securities
Mortgage- and asset-backed securities represent interests in “pools” of commercial or residential mortgages or other assets, including consumer and commercial loans or receivables. The Fund may purchase fixed or variable rate commercial or residential mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. Ginnie Mae’s guarantees are backed
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
as to the timely payment of principal and interest by the full faith and credit of the U.S. Government. Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. Since that time, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases and Treasury and Federal Reserve purchases of their mortgage-backed securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac.
The Fund may also purchase other mortgage- and asset-backed securities through single- and multi-seller conduits, collateralized debt obligations, structured investment vehicles, and other similar securities. Asset-backed securities may be backed by various consumer obligations, including automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying loans are not paid, the securities’ issuer could be forced to sell the assets and recognize losses on such assets, which could impact your return. Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Mortgage- and asset-backed securities are subject to both extension risk, where borrowers pay off their debt obligations more slowly in times of rising interest rates, and prepayment risk, where borrowers pay off their debt obligations sooner than expected in times of declining interest rates. These risks may reduce the Fund’s returns. In addition, investments in mortgage- and asset-backed securities, including those comprised of subprime mortgages, may be subject to a higher degree of credit risk, valuation risk, extension risk (if interest rates rise), and liquidity risk than various other types of fixed-income securities. Additionally, although mortgage-backed securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that guarantors or insurers will meet their obligations.
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment.
The following tables present gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of June 30, 2021” table located in the Fund’s Schedule of Investments.
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Bank of America, National Association | $ | 1,220,067 | $ | — | $ | — | $ | 1,220,067 |
Barclays Capital, Inc. | | 231,303 | | — | | — | | 231,303 |
BNP Paribas | | 19,496 | | — | | — | | 19,496 |
Citibank, National Association | | 5,447 | | (5,447) | | — | | — |
HSBC Securities (USA), Inc. | | 23,294 | | (23,294) | | — | | — |
JPMorgan Chase Bank, National Association | | 7,230,552 | | (18,819) | | (6,591,003) | | 620,730 |
| | | | | | | | | |
Total | $ | 8,730,159 | $ | (47,560) | $ | (6,591,003) | $ | 2,091,596 |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Citibank, National Association | $ | 77,044 | $ | (5,447) | $ | — | $ | 71,597 |
HSBC Securities (USA), Inc. | | 82,119 | | (23,294) | | — | | 58,825 |
JPMorgan Chase Bank, National Association | | 18,819 | | (18,819) | | — | | — |
| | | | | | | | | |
Total | $ | 177,982 | $ | (47,560) | $ | — | $ | 130,422 |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments' payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
Real Estate Investing
The Fund may invest 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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to primarily invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of June 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $6,591,003. Gross amounts of recognized liabilities for securities lending (collateral received) as of June 30, 2021 is $6,732,300, resulting in the net amount due to the counterparty of $141,297.
TBA Commitments
The Fund may enter into “to be announced” or “TBA” commitments. TBAs are forward agreements for the purchase or sale of securities, including mortgage-backed securities, for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate, and mortgage terms. Although the particular TBA securities must meet industry-accepted “good delivery” standards, there can be no assurance that a security purchased on forward commitment basis will ultimately be issued or delivered by the counterparty. During the settlement period, the Fund will still bear the risk of any decline in the value of the security to be delivered. Because TBA commitments do not require the purchase and sale of identical securities, the characteristics of the security delivered to the Fund may be less favorable than the security delivered to the dealer. If the counterparty to a transaction fails to deliver the security, the Fund could suffer a loss.
To facilitate TBA commitments, the Fund is required to segregate or otherwise earmark liquid assets marked to market daily in an amount at least equal to such TBA commitments. Rules of the Financial Industry Regulatory Authority (“FINRA”) which are expected to be effective in October 2021, include mandatory margin requirements for TBA commitments which, in some circumstances, will require the Fund to also post collateral. These collateral requirements may increase costs associated with the Fund’s participation in the TBA market.
When-Issued, Delayed Delivery and Forward Commitment Transactions
The Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis. When purchasing a security on a when-issued, delayed delivery, or forward commitment basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made. Because the Fund is not required to pay for the security until the delivery date, these risks are in addition to the risks associated with the Fund’s other investments. If the other party to a transaction fails to deliver the securities, the Fund could miss a favorable price or yield opportunity. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases are outstanding, the purchases may result in a form of leverage. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases (including TBA commitments) are outstanding, the purchases may result in a form of leverage.
When the Fund has sold a security on a when-issued, delayed delivery, or forward commitment basis, the Fund does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to pay for the securities, the Fund could suffer a loss. Additionally, when selling a security on a when-issued, delayed delivery, or forward commitment basis without owning the security, the Fund will incur a loss if the security’s price appreciates in value such that the security’s price is above the agreed upon price on the settlement date. The Fund may dispose of or renegotiate a transaction after it is entered into, and may purchase or sell when-issued, delayed delivery or forward commitment securities before the settlement date, which may result in a gain or loss.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $200 Million | 0.60 |
Next $500 Million | 0.57 |
Over $700 Million | 0.55 |
The Fund’s actual investment advisory fee rate for the reporting period was 0.56% of average annual net assets before any applicable waivers.
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.64% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 4.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $21,069.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class A Shares paid CDSCs of $998 to Janus Henderson Distributors.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $7,683.
As of June 30, 2021, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 50 | | 2 | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by Janus Capital in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the year ended June 30, 2021, the Fund engaged in cross trades amounting to $6,012,449 in purchases and $14,619,219 in sales, resulting in a net realized gain of $96,094. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
During the year ended June 30, 2021, Janus Capital voluntarily reimbursed the Fund for certain investment losses of $261,324 and the Fund realized a gain of $1,158,275 on the sale of investments not meeting the investment guidelines of the Fund. The impact of the reimbursement and gain on total return was 0.01% and 0.04%, respectively.
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, derivatives, and foreign currency contract adjustments. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 6,038,140 | $ 6,289,592 | $ - | $ - | $ - | $ 186,413 | $ 41,659,263 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships, and investments in passive foreign investment companies.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 3,579,218,927 | $76,237,539 | $(34,474,996) | $ 41,762,543 |
Information on the tax components of TBA sales commitments as of June 30, 2021 is as follows:
| | | | |
Federal Tax Cost | Unrealized
(Appreciation) | Unrealized
Depreciation | Net Tax (Appreciation)/
Depreciation |
$ (56,314,359) | $ - | $ (103,280) | $ (103,280) |
Information on the tax components of derivatives as of June 30, 2021 is as follows:
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (3,759,877) | $ 334,574 | $ - | $ 334,574 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, passive foreign investment companies, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 115,415,943 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 95,439,884 | $ 1,381,256 | $ 7,196,342 | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ 6,445,461 | $ 7,157,358 | $ (13,602,819) |
Capital has been adjusted by $6,706,786, all of which is long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 5,296,698 | $ 52,885,839 | | 5,881,189 | $ 57,450,937 |
Reinvested dividends and distributions | 236,695 | 2,354,171 | | 209,277 | 2,021,058 |
Shares repurchased | (4,101,540) | (41,044,253) | | (2,947,628) | (28,030,652) |
Net Increase/(Decrease) | 1,431,853 | $ 14,195,757 | | 3,142,838 | $ 31,441,343 |
Class C Shares: | | | | | |
Shares sold | 1,671,116 | $ 16,695,454 | | 4,365,941 | $ 43,265,490 |
Reinvested dividends and distributions | 230,346 | 2,290,871 | | 225,063 | 2,173,190 |
Shares repurchased | (1,585,562) | (15,800,224) | | (947,008) | (8,951,373) |
Net Increase/(Decrease) | 315,900 | $ 3,186,101 | | 3,643,996 | $ 36,487,307 |
Class D Shares: | | | | | |
Shares sold | 5,002,814 | $ 49,941,405 | | 7,208,284 | $ 71,298,516 |
Reinvested dividends and distributions | 373,370 | 3,718,250 | | 395,677 | 3,842,696 |
Shares repurchased | (2,908,655) | (28,924,041) | | (5,173,565) | (49,227,821) |
Net Increase/(Decrease) | 2,467,529 | $ 24,735,614 | | 2,430,396 | $ 25,913,391 |
Class I Shares: | | | | | |
Shares sold | 130,873,274 | $1,307,962,871 | | 187,809,930 | $1,829,611,768 |
Reinvested dividends and distributions | 8,681,127 | 86,379,431 | | 8,339,724 | 80,491,780 |
Shares repurchased | (76,272,612) | (756,920,545) | | (97,412,421) | (916,063,211) |
Net Increase/(Decrease) | 63,281,789 | $ 637,421,757 | | 98,737,233 | $ 994,040,337 |
Class N Shares: | | | | | |
Shares sold | 5,313,468 | $ 53,038,704 | | 9,516,447 | $ 90,188,205 |
Reinvested dividends and distributions | 414,150 | 4,122,238 | | 112,075 | 1,072,909 |
Shares repurchased | (2,980,678) | (29,605,850) | | (1,005,455) | (9,543,457) |
Net Increase/(Decrease) | 2,746,940 | $ 27,555,092 | | 8,623,067 | $ 81,717,657 |
Class S Shares: | | | | | |
Shares sold | 14,686 | $ 146,663 | | 51,267 | $ 482,838 |
Reinvested dividends and distributions | 3,649 | 36,188 | | 3,938 | 38,144 |
Shares repurchased | (48,928) | (491,183) | | (16,712) | (163,425) |
Net Increase/(Decrease) | (30,593) | $ (308,332) | | 38,493 | $ 357,557 |
Class T Shares: | | | | | |
Shares sold | 14,913,942 | $ 148,486,729 | | 39,030,110 | $ 383,384,900 |
Reinvested dividends and distributions | 1,237,845 | 12,302,567 | | 1,339,500 | 12,948,643 |
Shares repurchased | (23,637,310) | (235,926,497) | | (25,304,452) | (235,751,287) |
Net Increase/(Decrease) | (7,485,523) | $ (75,137,201) | | 15,065,158 | $ 160,582,256 |
7. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$3,593,670,675 | $3,053,573,505 | $ - | $ - |
Janus Henderson Multi-Sector Income Fund
Notes to Financial Statements
8. Recent Accounting Pronouncements
The FASB issued Accounting Standards Update 2020-04 Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) in March 2020. The new guidance in the ASU provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR or other interbank-offered based reference rates as of the end of 2021. For new and existing contracts, Funds may elect to apply the guidance as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of the ASU’s adoption to the Fund’s financial statements.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Multi-Sector Income Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Multi-Sector Income Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Multi-Sector Income Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian, transfer agent, investment companies, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Multi-Sector Income Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Multi-Sector Income Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Multi-Sector Income Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Multi-Sector Income Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Multi-Sector Income Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Section 163(j) Interest Dividend | 85% |
Capital Gain Distributions | $6,706,786 |
Qualified Dividend Income Percentage | 1% |
Janus Henderson Multi-Sector Income Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Multi-Sector Income Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Multi-Sector Income Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Multi-Sector Income Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Multi-Sector Income Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Multi-Sector Income Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Multi-Sector Income Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
John Kerschner
151 Detroit Street
Denver, CO 80206
DOB: 1967 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Multi-Sector Income Fund | 2/14-Present | Head of U.S. Securitized Products of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
John Lloyd
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Multi-Sector Income Fund | 2/14-Present | Co-Head of Global Credit Research of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts, and Analyst for Janus Henderson Investors. |
Seth Meyer
151 Detroit Street
Denver, CO 80206
DOB: 1976 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Multi-Sector Income Fund | 2/14-Present | Portfolio Manager for other Janus Henderson accounts. |
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Janus Henderson Multi-Sector Income Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
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Janus Henderson Multi-Sector Income Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Multi-Sector Income Fund
Notes
NotesPage1
Janus Henderson Multi-Sector Income Fund
Notes
NotesPage2
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93028 08-21 |
| | | |
| | | |
| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson Short-Term Bond Fund |
| | |
| | Janus Investment Fund |
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| | | |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Short-Term Bond Fund
Janus Henderson Short-Term Bond Fund (unaudited)
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FUND SNAPSHOT We believe our research-driven investment process, diversified portfolio construction and robust risk management can provide attractive income and drive consistent risk-adjusted performance, with excess returns generated primarily through sector and security decisions. Our collaborative investment teams utilize our investment flexibility to adjust our allocations across the investment cycle in an effort to capitalize on attractive opportunities with limited interest rate sensitivity and provide the capital preservation that clients expect from their short duration fixed income portfolio. | | | 
Seth Meyer co-portfolio manager | 
Greg Wilensky co-portfolio manager | 
Michael Keough co-portfolio manager |
| | | |
PERFORMANCE SUMMARY
During the one-year period ended June 30, 2021, Janus Henderson Short-Term Bond Fund’s Class I Shares returned 2.82% compared with 0.44% for the Fund’s benchmark, the Bloomberg Barclays 1-3 Year U.S. Government/Credit Index.
MARKET ENVIRONMENT
The period began amid economically damaging social distancing measures put in place by governments worldwide to mitigate the spread of COVID-19. However, U.S. credit markets had already begun recovering from their March lows as significant monetary and fiscal stimulus supported the markets and mid-period vaccine developments created optimism around a potential economic reopening in 2021. Indeed, during the second half of the period, vaccines were distributed at a faster-than-expected-rate and cyclical industries rebounded sharply as consumers began to resume aspects of their lifestyles that had previously been restricted.
Strong consumer spending coupled with supply chain issues and the residual effects of monetary and fiscal stimulus measures then brought on concerns of inflation. Shorter-dated Treasury yields rose late in the period on concern that the U.S. Federal Reserve (Fed) could raise interest rates sooner than the market had been anticipating. The yield on the 2-year note closed June at 0.22%, up from 0.16% a year earlier, which weighed on index returns. Credit markets rallied and drove the index higher as the economic outlook improved and spreads (yields over treasuries) tightened. High-yield corporates, which are typically more sensitive to an improving economic environment than Treasury moves, generated strong gains. Similarly, securitized sectors, including commercial mortgage-backed securities (CMBS) and asset-back securities (ABS), generated positive returns.
PERFORMANCE DISCUSSION
Our favorable view on the U.S. economic outlook and belief that the Fed was likely to remain accommodative led us to maintain the Fund’s overweight exposure to corporate bonds and securitized credit, as well as our underweight exposure to U.S. Treasuries.
We initiated a position in agency mortgage-backed securities (MBS) during the period as they began to look more attractive relative to Treasuries. We also established a position in Treasury Inflation-Protected Securities, which we adjusted with the ebb and flow of inflation expectations. Within credit, as the period progressed and spreads narrowed, we reduced our exposure to investment-grade corporate bonds. While we remained positive on the outlook for credit generally, valuations in investment-grade markets had reached a point where we felt the risk/reward no longer justified a significant overweight position. In the high-yield bond market, our holdings focused on companies we believed had the potential to be “rising stars” – securities that could see sufficient rating improvement to push them into the investment-grade market.
Our asset allocation decisions proved to be positive contributors. The Fund’s out-of-index allocation to high-yield corporate bonds performed well as the economic outlook continued to improve and investors’ demand for yield remained intact. Security selection within investment-grade corporate credit also benefited relative returns, particularly in the BBB segment of the market. Out-of-index positions in ABS further contributed to relative performance. Gains were partially offset by the Fund’s yield curve positioning. Our longer-dated corporate bonds
Janus Henderson Short-Term Bond Fund (unaudited)
(as compared to the index) were hurt by the curve’s dramatic bear steepening that took place during the period.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We continue to expect strong economic growth, fueled by the combination of excess consumer savings, expanding employment, fiscal stimulus and pent-up demand. With improving fundamentals for companies and consumers, we remain reasonably positive on shorter-maturity corporate bonds and securitized credit.
However, with spreads in many sectors close to the tightest levels of all time, they appear to be pricing in most of the good news. As such, we will continue to monitor valuations closely and expect to remain diversified in our exposure, looking to a wide variety of sectors and industries to provide yield and reduce overall portfolio volatility. While markets over the past year were primarily driven by broad strength across risk assets, we believe portfolio excess returns in the remainder of 2021 are more likely to be driven by our fundamental research and our ability to uncover individual sectors and securities with the potential to outperform the market. For one, we continue to favor sub-investment-grade securities as default rates are expected to be near historic lows, while low interest rates and supportive capital markets allow issuers to refinance at attractive levels.
We maintain our view that longer-term Treasury rates are too low for the kind of economic growth the market forecasts in the years ahead. However, front-end Treasury yields look more reasonable after their recent rise. The Fed continues to be an important driver for the markets. We expect monetary policy to remain accommodative in order to drive sustained improvement in employment and meet the Fed’s long-term inflation goals. Looking ahead, we believe it is prudent for the Fed to begin the tapering of asset purchases, but more meaningful tightening in the form of interest rate hikes is likely well into the future.
We believe most of the recent rise in inflation will prove to be transitory but expect that some residual effects will persist. In the months ahead, we will remain focused on what we believe are the most likely contributors to sustained inflation: wages and home prices, mindful that significant distortions could apply to both series as consumers and companies navigate their way through the changes COVID-19 wrought on the economy.
Thank you for your investment in Janus Henderson Short-Term Bond Fund.
Janus Henderson Short-Term Bond Fund (unaudited)
Fund At A Glance
June 30, 2021
| | | |
Fund Profile | | |
30-day Current Yield* | Without
Reimbursement | With
Reimbursement |
Class A Shares NAV | 0.10% | 0.15% |
Class A Shares MOP | 0.10% | 0.15% |
Class C Shares** | -0.68% | -0.61% |
Class D Shares | 0.23% | 0.31% |
Class I Shares | 0.27% | 0.32% |
Class N Shares | 0.37% | 0.44% |
Class S Shares | -0.56% | -0.06% |
Class T Shares | 0.14% | 0.19% |
Weighted Average Maturity | 2.2 Years |
Average Effective Duration*** | 2.3 Years |
* Yield will fluctuate. | | |
** Does not include the 1.00% contingent deferred sales charge. |
*** A theoretical measure of price volatility. | |
| | |
Ratings† Summary - (% of Total Investments) | |
AAA | 5.9% |
AA | 24.7% |
A | 2.6% |
BBB | 19.7% |
BB | 10.8% |
B | 1.9% |
Not Rated | 34.3% |
Other | 0.1% |
† Credit ratings provided by Standard & Poor's (S&P), an independent credit rating agency. Credit ratings range from AAA (highest) to D (lowest) based on S&P's measures. Further information on S&P's rating methodology may be found at www.standardandpoors.com. Other rating agencies may rate the same securities differently. Ratings are relative and subjective and are not absolute standards of quality. Credit quality does not remove market risk and is subject to change. "Not Rated" securities are not rated by S&P, but may be rated by other rating agencies and do not necessarily indicate low quality. "Other" includes cash equivalents, equity securities, and certain derivative instruments. |
Significant Areas of Investment - (% of Net Assets)
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Corporate Bonds | | 36.9% | |
Asset-Backed/Commercial Mortgage-Backed Securities | | 25.2% | |
United States Treasury Notes/Bonds | | 22.8% | |
Investment Companies | | 6.5% | |
Inflation-Indexed Bonds | | 6.0% | |
Mortgage-Backed Securities | | 5.6% | |
Bank Loans and Mezzanine Loans | | 2.7% | |
Other | | (5.7)% |
| | | 100.0% |
Janus Henderson Short-Term Bond Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 2.30% | 2.09% | 1.76% | 3.44% | | | 0.79% | 0.74% |
Class A Shares at MOP | | -0.30% | 1.56% | 1.50% | 3.27% | | | | |
Class C Shares at NAV | | 1.71% | 1.30% | 0.99% | 2.74% | | | 1.57% | 1.51% |
Class C Shares at CDSC | | 0.71% | 1.30% | 0.99% | 2.74% | | | | |
Class D Shares | | 2.47% | 2.19% | 1.88% | 3.76% | | | 0.64% | 0.58% |
Class I Shares | | 2.82% | 2.30% | 1.95% | 3.67% | | | 0.61% | 0.56% |
Class N Shares | | 2.61% | 2.33% | 1.96% | 3.79% | | | 0.49% | 0.44% |
Class S Shares | | 2.12% | 1.85% | 1.55% | 3.26% | | | 1.26% | 0.94% |
Class T Shares | | 2.36% | 2.08% | 1.77% | 3.72% | | | 0.74% | 0.69% |
Bloomberg Barclays 1-3 Year U.S. Government/Credit Index | | 0.44% | 1.88% | 1.49% | 3.70%** | | | | |
Morningstar Quartile - Class T Shares | | 2nd | 3rd | 3rd | 2nd | | | | |
Morningstar Ranking - based on total returns for Short-Term Bond Funds | | 239/595 | 326/525 | 261/419 | 72/156 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 2.50%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs),
Janus Henderson Short-Term Bond Fund (unaudited)
Performance
non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective share class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on May 31, 2012. Performance shown for periods prior to May 31, 2012, reflects the performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – September 1, 1992
** The Bloomberg Barclays 1-3 Year U.S. Government/Credit Index’s since inception returns are calculated from August 31, 1992.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Short-Term Bond Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $1,004.50 | $3.58 | | $1,000.00 | $1,021.22 | $3.61 | 0.72% |
Class C Shares | $1,000.00 | $998.40 | $6.44 | | $1,000.00 | $1,018.35 | $6.51 | 1.30% |
Class D Shares | $1,000.00 | $1,002.10 | $2.78 | | $1,000.00 | $1,022.02 | $2.81 | 0.56% |
Class I Shares | $1,000.00 | $1,005.40 | $2.73 | | $1,000.00 | $1,022.07 | $2.76 | 0.55% |
Class N Shares | $1,000.00 | $1,002.70 | $2.14 | | $1,000.00 | $1,022.66 | $2.16 | 0.43% |
Class S Shares | $1,000.00 | $1,000.30 | $4.56 | | $1,000.00 | $1,020.23 | $4.61 | 0.92% |
Class T Shares | $1,000.00 | $1,001.50 | $3.33 | | $1,000.00 | $1,021.47 | $3.36 | 0.67% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Short-Term Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– 25.2% | | | |
| | 208 Park Avenue Mortgage Trust 2017-280P, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8800%, 0.9529%, 9/15/34 (144A)‡ | | $4,021,000 | | | $4,021,074 | |
| | ACC Trust 2021-1 A, 0.7400%, 11/20/23 (144A) | | 2,519,000 | | | 2,517,613 | |
| | Affirm Asset Securitization Trust 2021-A A, 0.8800%, 8/15/25 (144A) | | 1,370,000 | | | 1,371,739 | |
| | American Credit Acceptance Receivables Trust 2020-2, | | | | | | |
| | 1.6500%, 12/13/23 (144A) | | 517,581 | | | 518,848 | |
| | Angel Oak Mortgage Trust I LLC 2019-5, 2.5930%, 10/25/49 (144A)‡ | | 608,148 | | | 610,304 | |
| | Angel Oak Mortgage Trust I LLC 2019-6, | | | | | | |
| | ICE LIBOR USD 12 Month + 0.9500%, 2.6200%, 11/25/59 (144A)‡ | | 565,782 | | | 569,167 | |
| | Barclays Comercial Mortgage Securities LLC 2017-DELC, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8500%, 0.9229%, 8/15/36 (144A)‡ | | 874,000 | | | 874,673 | |
| | BVRT Financing Trust, 2.3270%, 7/10/32‡ | | 2,928,000 | | | 2,928,000 | |
| | BVRT Financing Trust 2021-2F M1, 1.5600%, 1/10/32‡ | | 1,593,823 | | | 1,593,823 | |
| | BVRT Financing Trust 2021-CRT1 M1, 1.8270%, 1/10/33‡ | | 2,792,304 | | | 2,792,304 | |
| | BVRT Financing Trust 2021-CRT1 M2, 2.3270%, 1/10/33‡ | | 1,209,000 | | | 1,211,267 | |
| | BVRT Financing Trust 2021-CRT2 M1, 1.8451%, 11/10/32‡ | | 1,364,317 | | | 1,364,317 | |
| | BX Commercial Mortgage Trust 2019-XL, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9200%, 0.9930%, 10/15/36 (144A)‡ | | 3,583,947 | | | 3,590,150 | |
| | BX Commercial Mortgage Trust 2020-FOX A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0000%, 1.0730%, 11/15/32 (144A)‡ | | 3,373,600 | | | 3,382,248 | |
| | BX Commercial Mortgage Trust 2020-FOX B, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3500%, 1.4230%, 11/15/32 (144A)‡ | | 588,464 | | | 589,679 | |
| | BX Commercial Mortgage Trust 2020-FOX C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.5500%, 1.6230%, 11/15/32 (144A)‡ | | 490,223 | | | 491,564 | |
| | BX Commercial Mortgage Trust 2021-LBA AJV, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8000%, 0.8730%, 2/15/36 (144A)‡ | | 1,598,000 | | | 1,600,529 | |
| | BX Commercial Mortgage Trust 2021-LBA AV, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8000%, 0.8730%, 2/15/36 (144A)‡ | | 1,817,000 | | | 1,819,815 | |
| | CF Hippolyta Issuer LLC 2021-1A A1, 1.5300%, 3/15/61 (144A) | | 2,303,000 | | | 2,318,095 | |
| | CF Hippolyta Issuer LLC 2021-1A B1, 1.9800%, 3/15/61 (144A) | | 845,000 | | | 855,074 | |
| | Chase Auto Credit Linked Notes 2020-1 B, 0.9910%, 1/25/28 (144A) | | 3,444,791 | | | 3,449,477 | |
| | Chase Auto Credit Linked Notes 2020-2 B, 0.8400%, 2/25/28 (144A) | | 1,633,453 | | | 1,716,687 | |
| | Chase Auto Credit Linked Notes 2021-1 B, 0.8750%, 9/25/28 (144A) | | 2,930,000 | | | 2,932,159 | |
| | Chesapeake Funding II LLC 2019-2A, 2.7100%, 9/15/31 (144A) | | 2,858,000 | | | 2,950,719 | |
| | CIM Trust 2021-NR1 A1, 2.5690%, 7/25/55 (144A)Ç | | 2,071,534 | | | 2,070,961 | |
| | Cold Storage Trust 2020-ICE5 A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9000%, 0.9729%, 11/15/37 (144A)‡ | | 3,282,205 | | | 3,291,543 | |
| | Cold Storage Trust 2020-ICE5 B, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3000%, 1.3729%, 11/15/37 (144A)‡ | | 1,683,863 | | | 1,687,687 | |
| | Cold Storage Trust 2020-ICE5 C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.6500%, 1.7229%, 11/15/37 (144A)‡ | | 1,690,744 | | | 1,694,982 | |
| | Connecticut Avenue Securities Trust 2017-C01, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.5500%, 3.6415%, 7/25/29‡ | | 1,217,114 | | | 1,259,064 | |
| | Connecticut Avenue Securities Trust 2017-C05 1M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.2000%, 2.2915%, 1/25/30‡ | | 1,477,906 | | | 1,500,009 | |
| | Connecticut Avenue Securities Trust 2017-C07 1M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4000%, 2.4915%, 5/25/30‡ | | 4,452,690 | | | 4,508,641 | |
| | Connecticut Avenue Securities Trust 2018-R07, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4000%, 2.4915%, 4/25/31 (144A)‡ | | 379,302 | | | 381,181 | |
| | Connecticut Avenue Securities Trust 2019-R02, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.3000%, 2.3915%, 8/25/31 (144A)‡ | | 297,248 | | | 299,260 | |
| | Connecticut Avenue Securities Trust 2019-R03, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1500%, 2.2415%, 9/25/31 (144A)‡ | | 3,719,705 | | | 3,746,065 | |
| | Connecticut Avenue Securities Trust 2019-R04, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1000%, 2.1915%, 6/25/39 (144A)‡ | | 906,122 | | | 906,683 | |
| | Connecticut Avenue Securities Trust 2019-R05, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.0915%, 7/25/39 (144A)‡ | | 91,892 | | | 92,247 | |
| | Connecticut Avenue Securities Trust 2019-R07, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1000%, 2.1915%, 10/25/39 (144A)‡ | | 29,759 | | | 29,869 | |
| | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Short-Term Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Connecticut Avenue Securities Trust 2020-R02, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.0915%, 1/25/40 (144A)‡ | | $2,159,131 | | | $2,168,248 | |
| | Cosmopolitan Hotel Trust 2017, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9300%, 1.0029%, 11/15/36 (144A)‡ | | 654,369 | | | 655,430 | |
| | Credit Suisse Commercial Mortgage Trust 2019-ICE4, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9800%, 1.0530%, 5/15/36 (144A)‡ | | 4,234,000 | | | 4,240,405 | |
| | Credit Suisse Commercial Mortgage Trust 2019-ICE4 C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.4300%, 1.5030%, 5/15/36 (144A)‡ | | 4,106,000 | | | 4,111,601 | |
| | Credit Suisse Commercial Mortgage Trust 2020-UNFI, 4.1682%, 12/6/22‡ | | 4,000,000 | | | 3,994,858 | |
| | Credit Suisse Commercial Mortgage Trust 2021-WEHO A, 4.0422%, 4/15/23‡ | | 1,922,423 | | | 1,922,336 | |
| | DB Master Finance LLC 2017-1A A2II, 4.0300%, 11/20/47 (144A) | | 4,957,470 | | | 5,280,061 | |
| | DBJPM 16-C3 Mortgage Trust, 1.5020%, 8/10/49 | | 153,752 | | | 153,880 | |
| | Dell Equipment Finance Trust 2020-1, 2.2600%, 6/22/22 (144A) | | 1,952,406 | | | 1,965,010 | |
| | Diamond Infrastructure Funding LLC 2021-1A A, 1.7600%, 4/15/49 (144A) | | 2,114,000 | | | 2,103,538 | |
| | Diamond Resorts Owner Trust 2021-1A A, 1.5100%, 11/21/33 (144A) | | 1,570,058 | | | 1,566,899 | |
| | Donlen Fleet Lease Funding 2021-2 B, 0.9800%, 12/11/34 (144A) | | 1,572,000 | | | 1,574,016 | |
| | Donlen Fleet Lease Funding 2021-2 C, 1.2000%, 12/11/34 (144A) | | 1,471,000 | | | 1,466,345 | |
| | Drive Auto Receivables Trust 2017-3, 3.5300%, 12/15/23 (144A) | | 101,073 | | | 101,994 | |
| | Drive Auto Receivables Trust 2020-1, 2.7000%, 5/17/27 | | 2,511,000 | | | 2,584,143 | |
| | DROP Mortgage Trust 2021-FILE A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.1500%, 1.2200%, 4/15/26 (144A)‡ | | 3,929,000 | | | 3,943,575 | |
| | Dryden Senior Loan Fund 2017-53A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1200%, 1.3038%, 1/15/31‡ | | 2,940,000 | | | 2,937,295 | |
| | Eagle Re Ltd, ICE LIBOR USD 1 Month + 0.9000%, 0.9915%, 1/25/30 (144A)‡ | | 7,978,000 | | | 7,965,125 | |
| | Exeter Automobile Receivables Trust 2020-1A C, 2.4900%, 1/15/25 (144A) | | 1,840,000 | | | 1,873,241 | |
| | Exeter Automobile Receivables Trust 2021-1A C, 0.7400%, 1/15/26 | | 338,000 | | | 337,732 | |
| | Exeter Automobile Receivables Trust 2021-1A D, 1.0800%, 11/16/26 | | 1,081,000 | | | 1,080,495 | |
| | Extended Stay America Trust 2021-ESH A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0800%, 0%, 7/15/38 (144A)‡ | | 2,656,000 | | | 2,656,000 | |
| | Extended Stay America Trust 2021-ESH B, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3800%, 0%, 7/15/38 (144A)‡ | | 722,000 | | | 722,000 | |
| | Extended Stay America Trust 2021-ESH E, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.8500%, 0%, 7/15/38 (144A)‡ | | 3,387,000 | | | 3,387,000 | |
| | Fannie Mae Connecticut Avenue Securities, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.0000%, 5.0915%, 7/25/25‡ | | 391,994 | | | 402,115 | |
| | Fannie Mae Connecticut Avenue Securities, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.7000%, 5.7915%, 4/25/28‡ | | 622,471 | | | 659,279 | |
| | Foursight Capital Auto Receivables Trust 2021-1 B, 0.8700%, 1/15/26 (144A) | | 2,960,000 | | | 2,967,144 | |
| | Foursight Capital Automobile Receivables Trust 2018-2, | | | | | | |
| | 3.8000%, 11/15/23 (144A) | | 1,060,535 | | | 1,066,554 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA1 M3, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.5500%, 5.6416%, 7/25/28‡ | | 709,893 | | | 741,265 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2019-DNA4 M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.9500%, 2.0415%, 10/25/49 (144A)‡ | | 1,886,389 | | | 1,895,290 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-DNA6 M1, | | | | | | |
| | US 30 Day Average SOFR + 0.9000%, 0.9180%, 12/25/50 (144A)‡ | | 1,123,035 | | | 1,123,945 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-DNA6 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 2.0180%, 12/25/50 (144A)‡ | | 1,707,000 | | | 1,722,844 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA5 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.6000%, 2.6180%, 11/25/50 (144A)‡ | | 2,771,000 | | | 2,825,556 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-DNA2 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.3000%, 2.3180%, 8/25/33 (144A)‡ | | 844,000 | | | 865,481 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-HQA1 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.2500%, 2.2680%, 8/25/33 (144A)‡ | | 907,000 | | | 917,512 | |
| | GLS Auto Receivables Issuer Trust 2019-2, 3.0600%, 4/17/23 (144A) | | 19,920 | | | 19,938 | |
| | GLS Auto Receivables Issuer Trust 2020-4A B, 0.8700%, 12/16/24 (144A) | | 2,482,000 | | | 2,491,349 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0340%, 1.1070%, 12/15/36 (144A)‡ | | 5,929,000 | | | 5,935,257 | |
| | Hewlett-Packard Financial Services Company Trust 2020-1A C, | | | | | | |
| | 2.0300%, 2/20/30 (144A) | | 800,000 | | | 814,639 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Short-Term Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Hewlett-Packard Financial Services Company Trust 2020-1A D, | | | | | | |
| | 2.2600%, 2/20/30 (144A) | | $800,000 | | | $816,178 | |
| | Hilton Grand Vacations Trust 2020-AA, 2.7400%, 2/25/39 (144A) | | 2,946,546 | | | 3,058,659 | |
| | Jack in the Box Funding LLC 2019-1A A2I, 3.9820%, 8/25/49 (144A) | | 5,081,880 | | | 5,163,994 | |
| | JP Morgan Mortgage Trust 2019-LTV2, 3.5000%, 12/25/49 (144A)‡ | | 691,186 | | | 707,147 | |
| | KNDL Mortgage Trust 2019-KNSQ A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8000%, 0.8730%, 5/15/36 (144A)‡ | | 3,838,000 | | | 3,842,460 | |
| | Lanark Master Issuer PLC, 2.2770%, 12/22/69 (144A)Ç | | 3,829,000 | | | 3,924,334 | |
| | Life Financial Services Trust 2021-BMR A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.7000%, 0.7730%, 3/15/38 (144A)‡ | | 4,219,000 | | | 4,226,062 | |
| | Life Financial Services Trust 2021-BMR C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.1000%, 1.1730%, 3/15/38 (144A)‡ | | 2,015,000 | | | 2,019,300 | |
| | Mello Warehouse Securitization Trust 2019-2, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.1500%, 1.2415%, 11/25/52 (144A)‡ | | 7,634,460 | | | 7,731,590 | |
| | Mercury Financial Credit Card Master Trust 2021-1A A, | | | | | | |
| | 1.5400%, 3/20/26 (144A) | | 1,890,000 | | | 1,896,110 | |
| | MHC Commercial Mortgage Trust 2021-MHC A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8010%, 0.8738%, 4/15/38 (144A)‡ | | 3,727,956 | | | 3,730,909 | |
| | MHC Commercial Mortgage Trust 2021-MHC C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3510%, 1.4238%, 4/15/38 (144A)‡ | | 1,797,068 | | | 1,798,793 | |
| | Morgan Stanley Capital I Trust 2007-T27 AJ, 6.2148%, 6/11/42‡ | | 2,696,966 | | | 2,771,403 | |
| | MRA Issuance Trust 2021-NA1 A1X, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.5000%, 0%, 3/8/22 (144A)‡ | | 3,051,000 | | | 3,051,000 | |
| | Newday Funding Master Issuer PLC 2021-1A A2, | | | | | | |
| | SOFR + 1.1000%, 1.1100%, 3/15/29 (144A)‡ | | 1,293,000 | | | 1,299,843 | |
| | NRZ Excess Spread Collateralized Notes 2020-PLS1 A, | | | | | | |
| | 3.8440%, 12/25/25 (144A) | | 658,490 | | | 683,350 | |
| | Oak Street Investment Grade Net Lease Fund 2020-1A A1, | | | | | | |
| | 1.8500%, 11/20/50 (144A) | | 1,438,219 | | | 1,459,552 | |
| | Ondeck Asset Securitization Trust LLC 2021-1A A, 1.5900%, 5/17/27 (144A) | | 1,807,000 | | | 1,801,558 | |
| | Oscar US Funding Trust 2021-1A A3, 0.7000%, 4/10/25 (144A) | | 2,188,000 | | | 2,191,127 | |
| | OSCAR US Funding Trust VII LLC, 2.7600%, 12/10/24 (144A) | | 3,201,058 | | | 3,239,851 | |
| | Planet Fitness Master Issuer LLC 2018-1A, 4.2620%, 9/5/48 (144A) | | 2,358,313 | | | 2,358,313 | |
| | Prestige Auto Receivables Trust 2018-1, 3.7500%, 10/15/24 (144A) | | 1,639,000 | | | 1,654,527 | |
| | Santander Consumer Auto Receivables Trust 2020-AA, 1.3700%, 10/15/24 (144A) | | 684,142 | | | 687,543 | |
| | Santander Drive Auto Receivables Trust 2017-2, 4.9900%, 9/16/24 (144A) | | 10,046,000 | | | 10,098,208 | |
| | Santander Drive Auto Receivables Trust 2018-2, 5.0200%, 9/15/25 | | 2,594,000 | | | 2,690,941 | |
| | Santander Drive Auto Receivables Trust 2021-1 D, 1.1300%, 11/16/26 | | 4,581,000 | | | 4,587,074 | |
| | Santander Prime Auto Issuance Notes Trust 2018-A, 5.0400%, 9/15/25 (144A) | | 1,749,046 | | | 1,760,606 | |
| | Sierra Receivables Funding Co LLC 2021-1A A, 0.9900%, 11/20/37 (144A) | | 2,551,347 | | | 2,541,528 | |
| | Silverstone Master Issuer PLC, | | | | | | |
| | ICE LIBOR USD 3 Month + 0.3900%, 0.6136%, 1/21/70 (144A)‡ | | 2,230,480 | | | 2,233,132 | |
| | SoFi Professional Loan Program 2020-C Trust, 1.9500%, 2/15/46 (144A) | | 3,106,584 | | | 3,152,225 | |
| | Spruce Hill Mortgage Loan Trust 2020-SH2, 3.4070%, 6/25/55 (144A)‡ | | 952,847 | | | 968,928 | |
| | Taco Bell Funding LLC, 4.3770%, 5/25/46 (144A) | | 2,476,800 | | | 2,476,800 | |
| | Taco Bell Funding LLC 2018-1A A2I, 4.3180%, 11/25/48 (144A) | | 16,308,072 | | | 16,301,191 | |
| | Tesla Auto Lease Trust 2018-B, 7.8700%, 6/20/22 (144A) | | 2,181,000 | | | 2,225,438 | |
| | Tesla Auto Lease Trust 2020-A, 4.6400%, 8/20/24 (144A) | | 2,650,000 | | | 2,782,048 | |
| | TTAN 2021-MHC A, ICE LIBOR USD 1 Month + 0.8500%, 0.9230%, 3/15/38 (144A)‡ | | 1,681,000 | | | 1,682,924 | |
| | UNIFY Auto Receivables Trust 2021-1A A4, 0.9800%, 7/15/26 (144A) | | 2,930,000 | | | 2,963,764 | |
| | Upstart Securitization Trust 2020-3 A, 1.7020%, 11/20/30 (144A) | | 1,781,468 | | | 1,791,401 | |
| | Upstart Securitization Trust 2021-1 A, 0.8700%, 3/20/31 (144A) | | 1,233,036 | | | 1,235,442 | |
| | Vantage Data Centers LLC 2020-1A A2, 1.6450%, 9/15/45 (144A) | | 3,924,000 | | | 3,930,666 | |
| | VASA Trust 2021-VASA A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9000%, 0.9730%, 7/15/39 (144A)‡ | | 1,260,000 | | | 1,254,400 | |
| | VCAT Asset Securitization LLC 2020-NPL1, 3.6710%, 8/25/50 (144A)Ç | | 632,470 | | | 641,938 | |
| | Verizon Owner Trust 2019-C, 2.0600%, 4/22/24 | | 8,417,000 | | | 8,616,023 | |
| | Verus Securitization Trust 2020-1, 2.6420%, 1/25/60 (144A)Ç | | 5,069,086 | | | 5,108,742 | |
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $288,766,263) | | 289,933,934 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Short-Term Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Bank Loans and Mezzanine Loans– 2.7% | | | |
Basic Industry – 0.3% | | | |
| | Alpha 3 BV, ICE LIBOR USD 1 Month + 2.5000%, 3.0000%, 3/18/28‡ | | $3,168,000 | | | $3,150,196 | |
Capital Goods – 0.3% | | | |
| | Madison IAQ LLC, ICE LIBOR USD 1 Month + 3.2500%, 3.7500%, 6/21/28ƒ,‡ | | 3,637,466 | | | 3,637,466 | |
Communications – 1.4% | | | |
| | Charter Communications Operating LLC, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.7500%, 1.8600%, 4/30/25‡ | | 16,318,378 | | | 16,283,783 | |
Consumer Non-Cyclical – 0.7% | | | |
| | Elanco Animal Health Inc, ICE LIBOR USD 1 Month + 1.7500%, 1.8651%, 8/1/27‡ | | 3,667,248 | | | 3,609,195 | |
| | Froneri US Inc, ICE LIBOR USD 1 Month + 2.2500%, 2.3543%, 1/29/27‡ | | 1,786,415 | | | 1,758,279 | |
| | Reynolds Consumer Products Inc, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.7500%, 1.8543%, 2/4/27‡ | | 2,979,372 | | | 2,954,047 | |
| | | 8,321,521 | |
Total Bank Loans and Mezzanine Loans (cost $31,524,960) | | 31,392,966 | |
Corporate Bonds– 36.9% | | | |
Banking – 11.2% | | | |
| | Bank of America Corp, 4.0000%, 1/22/25 | | 9,491,000 | | | 10,416,020 | |
| | Bank of New York Mellon Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 4.3580%, 4.7000%‡,µ | | 5,759,000 | | | 6,284,509 | |
| | Barclays PLC, 1.0070%, 12/10/24 | | 4,518,000 | | | 4,534,114 | |
| | BNP Paribas SA, ICE LIBOR USD 3 Month + 2.2350%, 4.7050%, 1/10/25 (144A)‡ | | 3,253,000 | | | 3,549,012 | |
| | BNP Paribas SA, ICE LIBOR USD 3 Month + 1.1110%, 2.8190%, 11/19/25 (144A)‡ | | 2,267,000 | | | 2,385,205 | |
| | BNP Paribas SA, USD SWAP SEMI 30/360 5YR + 5.1500%, 7.3750% (144A)‡,µ | | 5,148,000 | | | 6,000,612 | |
| | BPCE SA, 5.1500%, 7/21/24 (144A) | | 5,264,000 | | | 5,865,102 | |
| | Citigroup Inc, 4.4000%, 6/10/25 | | 10,314,000 | | | 11,518,874 | |
| | Credit Agricole SA, 4.3750%, 3/17/25 (144A) | | 1,682,000 | | | 1,849,614 | |
| | Credit Agricole SA/London, SOFR + 1.6760%, 1.9070%, 6/16/26 (144A)‡ | | 1,047,000 | | | 1,067,459 | |
| | Credit Suisse Group AG, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.2000%, 2.9970%, 12/14/23 (144A)‡ | | 5,560,000 | | | 5,741,621 | |
| | Goldman Sachs Group Inc, SOFR + 0.5380%, 0.6270%, 11/17/23‡ | | 5,881,000 | | | 5,882,750 | |
| | Goldman Sachs Group Inc, 3.5000%, 4/1/25 | | 6,854,000 | | | 7,435,886 | |
| | HSBC Holdings PLC, SOFR + 1.5380%, 1.6450%, 4/18/26‡ | | 4,107,000 | | | 4,162,065 | |
| | JPMorgan Chase & Co, ICE LIBOR USD 3 Month + 3.7800%, 6.7500%‡,µ | | 5,657,000 | | | 6,272,764 | |
| | Morgan Stanley, 4.1000%, 5/22/23 | | 14,001,000 | | | 14,908,113 | |
| | Morgan Stanley, ICE LIBOR USD 3 Month + 0.8470%, 3.7370%, 4/24/24‡ | | 5,133,000 | | | 5,428,690 | |
| | Societe Generale SA, 2.6250%, 1/22/25 (144A) | | 4,749,000 | | | 4,954,232 | |
| | Svenska Handelsbanken AB, 0.5500%, 6/11/24 (144A) | | 4,734,000 | | | 4,716,753 | |
| | UBS Group AG, | | | | | | |
| | US Treasury Yield Curve Rate 1 Year + 0.8300%, 1.0080%, 7/30/24 (144A)‡ | | 2,578,000 | | | 2,596,566 | |
| | UBS Group AG, USD SWAP SEMI 30/360 5YR + 4.3440%, 7.0000% (144A)‡,µ | | 5,447,000 | | | 5,998,509 | |
| | Wells Fargo & Co, SOFR + 1.6000%, 1.6540%, 6/2/24‡ | | 6,828,000 | | | 6,974,035 | |
| | | 128,542,505 | |
Basic Industry – 0.5% | | | |
| | International Flavors & Fragrances Inc, 0.6970%, 9/15/22 (144A) | | 3,250,000 | | | 3,252,030 | |
| | Tronox Inc, 6.5000%, 5/1/25 (144A) | | 2,138,000 | | | 2,262,624 | |
| | | 5,514,654 | |
Brokerage – 1.0% | | | |
| | Charles Schwab Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 4.9710%, 5.3750%‡,µ | | 10,603,000 | | | 11,719,496 | |
Capital Goods – 2.9% | | | |
| | Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc, | | | | | | |
| | 4.1250%, 8/15/26 (144A) | | 8,019,000 | | | 8,279,617 | |
| | Boeing Co, 2.1960%, 2/4/26 | | 14,258,000 | | | 14,394,281 | |
| | CNH Industrial Capital LLC, 4.3750%, 4/5/22 | | 3,915,000 | | | 4,027,335 | |
| | GFL Environmental Inc, 3.7500%, 8/1/25 (144A) | | 3,989,000 | | | 4,098,698 | |
| | TransDigm Inc, 8.0000%, 12/15/25 (144A) | | 2,724,000 | | | 2,943,282 | |
| | | 33,743,213 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson Short-Term Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Communications – 2.0% | | | |
| | Altice Financing SA, 7.5000%, 5/15/26 (144A) | | $1,638,000 | | | $1,705,649 | |
| | CenturyLink Inc, 7.5000%, 4/1/24 | | 1,450,000 | | | 1,627,625 | |
| | CenturyLink Inc, 5.6250%, 4/1/25 | | 1,053,000 | | | 1,142,505 | |
| | CSC Holdings LLC, 5.2500%, 6/1/24 | | 2,626,000 | | | 2,845,806 | |
| | Netflix Inc, 3.6250%, 6/15/25 (144A) | | 6,290,000 | | | 6,754,454 | |
| | Sirius XM Radio Inc, 3.8750%, 8/1/22 (144A) | | 235,000 | | | 235,423 | |
| | Sirius XM Radio Inc, 4.6250%, 7/15/24 (144A) | | 1,678,000 | | | 1,722,299 | |
| | Sprint Communications Inc, 6.0000%, 11/15/22 | | 3,817,000 | | | 4,041,249 | |
| | Sprint Corp, 7.8750%, 9/15/23 | | 2,254,000 | | | 2,560,715 | |
| | | 22,635,725 | |
Consumer Cyclical – 4.0% | | | |
| | 1011778 BC ULC / New Red Finance Inc, 4.2500%, 5/15/24 (144A) | | 1,296,000 | | | 1,310,256 | |
| | Colt Merger Sub Inc, 5.7500%, 7/1/25 (144A) | | 2,695,000 | | | 2,839,856 | |
| | Ford Motor Co, 8.5000%, 4/21/23 | | 5,020,000 | | | 5,602,069 | |
| | GLP Capital LP / GLP Financing II Inc, 3.3500%, 9/1/24 | | 8,304,000 | | | 8,796,567 | |
| | Hyundai Capital America, | | | | | | |
| | ICE LIBOR USD 3 Month + 0.9400%, 1.1374%, 7/8/21 (144A)‡ | | 6,958,000 | | | 6,958,828 | |
| | International Game Technology PLC, 4.1250%, 4/15/26 (144A) | | 1,766,000 | | | 1,838,848 | |
| | IRB Holding Corp, 7.0000%, 6/15/25 (144A) | | 1,596,000 | | | 1,723,712 | |
| | Vail Resorts Inc, 6.2500%, 5/15/25 (144A) | | 3,139,000 | | | 3,359,923 | |
| | VICI Properties LP / VICI Note Co Inc, 3.5000%, 2/15/25 (144A) | | 8,097,000 | | | 8,256,835 | |
| | Wyndham Destinations Inc, 4.2500%, 3/1/22 | | 3,183,000 | | | 3,218,809 | |
| | Wyndham Destinations Inc, 5.6500%, 4/1/24 | | 1,763,000 | | | 1,920,753 | |
| | | 45,826,456 | |
Consumer Non-Cyclical – 5.7% | | | |
| | Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC, | | | | | | |
| | 3.5000%, 2/15/23 (144A) | | 5,132,000 | | | 5,268,049 | |
| | Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC, | | | | | | |
| | 3.2500%, 3/15/26 (144A) | | 2,393,000 | | | 2,427,100 | |
| | Elanco Animal Health Inc, 4.9120%, 8/27/21 | | 2,483,000 | | | 2,492,622 | |
| | Elanco Animal Health Inc, 5.2720%, 8/28/23 | | 14,070,000 | | | 15,133,551 | |
| | Hasbro Inc, 2.6000%, 11/19/22 | | 5,650,000 | | | 5,812,860 | |
| | HCA Inc, 5.8750%, 5/1/23 | | 7,370,000 | | | 8,008,979 | |
| | HCA Inc, 5.3750%, 2/1/25 | | 1,308,000 | | | 1,475,424 | |
| | HCA Inc, 5.8750%, 2/15/26 | | 684,000 | | | 790,465 | |
| | Indigo Merger Sub Inc, 2.8750%, 7/15/26 (144A) | | 6,630,000 | | | 6,734,820 | |
| | Kraft Heinz Foods Co, 3.0000%, 6/1/26 | | 7,591,000 | | | 8,083,918 | |
| | Sysco Corp, 5.6500%, 4/1/25 | | 5,112,000 | | | 5,922,043 | |
| | Tenet Healthcare Corp, 4.6250%, 7/15/24 | | 1,730,000 | | | 1,755,431 | |
| | Upjohn Inc, 1.1250%, 6/22/22 (144A) | | 1,186,000 | | | 1,194,457 | |
| | | 65,099,719 | |
Electric – 1.0% | | | |
| | AES Corp/The, 1.3750%, 1/15/26 (144A) | | 5,888,000 | | | 5,830,231 | |
| | NextEra Energy Operating Partners LP, 4.2500%, 7/15/24 (144A) | | 2,529,000 | | | 2,668,095 | |
| | Vistra Operations Co LLC, 5.5000%, 9/1/26 (144A) | | 2,814,000 | | | 2,901,938 | |
| | | 11,400,264 | |
Energy – 1.6% | | | |
| | DCP Midstream Operating LP, 4.9500%, 4/1/22 | | 2,553,000 | | | 2,600,869 | |
| | Diamondback Energy Inc, 0.9000%, 3/24/23 | | 6,445,000 | | | 6,446,385 | |
| | EQT Corp, 3.1250%, 5/15/26 (144A) | | 8,555,000 | | | 8,766,394 | |
| | ONEOK Inc, 5.8500%, 1/15/26 | | 904,000 | | | 1,068,764 | |
| | | 18,882,412 | |
Finance Companies – 1.5% | | | |
| | Air Lease Corp, 1.8750%, 8/15/26 | | 3,147,000 | | | 3,149,432 | |
| | Avolon Holdings Funding Ltd, 4.2500%, 4/15/26 (144A) | | 2,351,000 | | | 2,547,722 | |
| | Avolon Holdings Funding Ltd, 2.1250%, 2/21/26 (144A) | | 3,354,000 | | | 3,340,111 | |
| | OneMain Finance Corp, 3.5000%, 1/15/27 | | 1,664,000 | | | 1,676,480 | |
| | Quicken Loans Inc, 5.2500%, 1/15/28 (144A) | | 1,623,000 | | | 1,704,150 | |
| | Springleaf Finance Corp, 6.8750%, 3/15/25 | | 2,071,000 | | | 2,337,331 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Short-Term Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Finance Companies– (continued) | | | |
| | Springleaf Finance Corp, 8.8750%, 6/1/25 | | $2,825,000 | | | $3,132,049 | |
| | | 17,887,275 | |
Government Sponsored – 0.1% | | | |
| | DAE Funding LLC, 1.5500%, 8/1/24 (144A) | | 1,642,000 | | | 1,638,667 | |
Insurance – 0.7% | | | |
| | Athene Global Funding, 2.5000%, 1/14/25 (144A) | | 7,974,000 | | | 8,310,533 | |
Real Estate Investment Trusts (REITs) – 1.5% | | | |
| | ESH Hospitality Inc, 5.2500%, 5/1/25 (144A) | | 5,696,000 | | | 5,801,946 | |
| | HAT Holdings I LLC / HAT Holdings II LLC, 3.3750%, 6/15/26 (144A) | | 4,371,000 | | | 4,403,783 | |
| | SL Green Operating Partnership LP, | | | | | | |
| | ICE LIBOR USD 3 Month + 0.9800%, 1.1359%, 8/16/21‡ | | 6,694,000 | | | 6,695,564 | |
| | | 16,901,293 | |
Technology – 3.2% | | | |
| | Broadcom Inc, 3.4590%, 9/15/26 | | 12,701,000 | | | 13,831,354 | |
| | Microchip Technology Inc, 2.6700%, 9/1/23 | | 5,655,000 | | | 5,889,793 | |
| | Microchip Technology Inc, 4.2500%, 9/1/25 | | 2,385,000 | | | 2,503,930 | |
| | SK Hynix Inc, 1.0000%, 1/19/24 (144A) | | 6,587,000 | | | 6,549,849 | |
| | Skyworks Solutions Inc, 0.9000%, 6/1/23 | | 3,131,000 | | | 3,140,310 | |
| | Switch Inc, 3.7500%, 9/15/28 (144A) | | 1,718,000 | | | 1,739,475 | |
| | VMware Inc, 4.5000%, 5/15/25 | | 2,716,000 | | | 3,033,243 | |
| | | 36,687,954 | |
Total Corporate Bonds (cost $415,020,581) | | 424,790,166 | |
Inflation-Indexed Bonds– 6.0% | | | |
| | United States Treasury Inflation Indexed Bonds, 0.6250%, 4/15/23ÇÇ | | 54,139,246 | | | 57,268,114 | |
| | United States Treasury Inflation Indexed Bonds, 0.1250%, 4/15/26ÇÇ | | 10,610,894 | | | 11,542,111 | |
Total Inflation-Indexed Bonds (cost $68,816,336) | | 68,810,225 | |
Mortgage-Backed Securities– 5.6% | | | |
Fannie Mae: | | | |
| | 2.5000%, TBA, 30 Year Maturity | | 50,823,800 | | | 52,556,892 | |
Freddie Mac Pool: | | | |
| | 2.0000%, 5/1/41 | | 11,247,560 | | | 11,486,256 | |
Total Mortgage-Backed Securities (cost $63,930,311) | | 64,043,148 | |
United States Treasury Notes/Bonds– 22.8% | | | |
| | 1.7500%, 7/15/22 | | 45,232,500 | | | 46,004,633 | |
| | 0.1250%, 12/31/22 | | 45,320,000 | | | 45,281,053 | |
| | 0.1250%, 1/31/23 | | 8,633,000 | | | 8,624,569 | |
| | 0.1250%, 2/28/23 | | 33,496,000 | | | 33,454,130 | |
| | 0.1250%, 3/31/23 | | 60,739,000 | | | 60,646,468 | |
| | 0.2500%, 4/15/23 | | 8,776,000 | | | 8,780,799 | |
| | 0.1250%, 4/30/23 | | 36,115,000 | | | 36,047,284 | |
| | 0.1250%, 5/31/23 | | 24,051,000 | | | 23,999,328 | |
Total United States Treasury Notes/Bonds (cost $263,064,022) | | 262,838,264 | |
Investment Companies– 6.5% | | | |
Money Markets – 6.5% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº,£((cost $74,352,923) | | 74,345,488 | | | 74,352,923 | |
Total Investments (total cost $1,205,475,396) – 105.7% | | 1,216,161,626 | |
Liabilities, net of Cash, Receivables and Other Assets – (5.7)% | | (65,667,845) | |
Net Assets – 100% | | $1,150,493,781 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Short-Term Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $1,104,923,368 | | 90.9 | % |
France | | 25,671,236 | | 2.1 | |
United Kingdom | | 19,303,684 | | 1.6 | |
Switzerland | | 14,336,696 | | 1.2 | |
Ireland | | 12,622,653 | | 1.0 | |
Canada | | 8,359,673 | | 0.7 | |
Bermuda | | 7,965,125 | | 0.7 | |
South Korea | | 6,549,849 | | 0.5 | |
Japan | | 5,430,978 | | 0.5 | |
Sweden | | 4,716,753 | | 0.4 | |
Cayman Islands | | 2,937,295 | | 0.2 | |
Luxembourg | | 1,705,649 | | 0.1 | |
United Arab Emirates | | 1,638,667 | | 0.1 | |
| | | | | | |
| | | | | | |
Total | | $1,216,161,626 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 6/30/21 |
Investment Companies - 6.5% |
Money Markets - 6.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | $ | 41,905 | $ | (3,624) | $ | - | $ | 74,352,923 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 3,813∆ | | - | | - | | - |
Total Affiliated Investments - 6.5% | $ | 45,718 | $ | (3,624) | $ | - | $ | 74,352,923 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Short-Term Bond Fund
Schedule of Investments
June 30, 2021
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 6.5% |
Money Markets - 6.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | | 63,601,717 | | 718,847,466 | | (708,092,636) | | 74,352,923 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 243,000 | | 20,471,622 | | (20,714,622) | | - |
Schedule of Futures
| | | | | | | | | | | | | | |
Description | | Number of Contracts | | Expiration Date | | Value and Notional Amount | | Unrealized Appreciation/ (Depreciation) | | Variation Margin Asset/(Liability) | | |
Futures Purchased: | | | | | | | | | | | | |
2 Year US Treasury Note | | 1,978 | | 10/5/21 | $ | 435,793,577 | $ | (619,523) | $ | 42,685 | |
Futures Sold: | | | | | | | | | | | | |
10 Year US Treasury Note | | 81 | | 9/30/21 | | (10,732,500) | | (62,648) | | (18,984) | |
5 Year US Treasury Note | | 598 | | 10/5/21 | | (73,810,953) | | 207,468 | | (43,281) | |
US Treasury Long Bond | | 87 | | 9/30/21 | | (13,985,250) | | (402,256) | | (57,094) | |
Total - Futures Sold | | | | | | | | (257,436) | | (119,359) | | |
Total | | | | | | | $ | (876,959) | $ | (76,674) | | |
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of June 30, 2021.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of June 30, 2021 |
| | | | | |
| | | | | Interest Rate
Contracts |
Asset Derivatives: | | | |
Variation margin receivable on futures contracts | | | $ 42,685 |
| | | | |
Liability Derivatives: | | | |
Variation margin payable on futures contracts | | | $ 119,359 |
| | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Short-Term Bond Fund
Schedule of Investments
June 30, 2021
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended June 30, 2021.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended June 30, 2021 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Interest Rate
Contracts |
Futures contracts | | $ 385,268 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Interest Rate
Contracts |
Futures contracts | | $ (922,318) |
| | | | | |
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
Average Ending Monthly Market Value of Derivative Instruments During the Year Ended June 30, 2021 |
| |
| Market Value |
Futures contracts, purchased | $149,755,252 |
Futures contracts, sold | 28,501,004 |
| | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Short-Term Bond Fund
Notes to Schedule of Investments and Other Information
| | |
Bloomberg Barclays 1-3 Year U.S. Government/Credit Index | Bloomberg Barclays 1-3 Year U.S. Government/Credit Index measures Treasuries, government-related issues and corporates with maturity between 1-3 years. |
| | |
ICE | Intercontinental Exchange |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
SOFR | Secured Overnight Financing Rate |
TBA | (To Be Announced) Securities are purchased/sold on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement when specific mortgage pools are assigned. |
ULC | Unlimited Liability Company |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the year ended June 30, 2021 is $413,392,009, which represents 35.9% of net assets. |
| | |
ƒ | All or a portion of this position is not funded, or has been purchased on a delayed delivery or when-issued basis. If applicable, interest rates will be determined and interest will begin to accrue at a future date. See Notes to Financial Statements. |
| | |
‡ | Variable or floating rate security. Rate shown is the current rate as of June 30, 2021. Certain variable rate securities are not based on a published reference rate and spread; they are determined by the issuer or agent and current market conditions. Reference rate is as of reset date and may vary by security, which may not indicate a reference rate and/or spread in their description. |
| | |
ÇÇ | Security is a U.S. Treasury Inflation-Protected Security (TIPS). |
| | |
ºº | Rate shown is the 7-day yield as of June 30, 2021. |
| | |
µ | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. The date indicated, if any, represents the next call date. |
| | |
Ç | Step bond. The coupon rate will increase or decrease periodically based upon a predetermined schedule. The rate shown reflects the current rate. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Henderson Short-Term Bond Fund
Notes to Schedule of Investments and Other Information
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Asset-Backed/Commercial Mortgage-Backed Securities | $ | - | $ | 289,933,934 | $ | - |
Bank Loans and Mezzanine Loans | | - | | 31,392,966 | | - |
Corporate Bonds | | - | | 424,790,166 | | - |
Inflation-Indexed Bonds | | - | | 68,810,225 | | - |
Mortgage-Backed Securities | | - | | 64,043,148 | | - |
United States Treasury Notes/Bonds | | - | | 262,838,264 | | - |
Investment Companies | | - | | 74,352,923 | | - |
Total Investments in Securities | $ | - | $ | 1,216,161,626 | $ | - |
Other Financial Instruments(a): | | | | | | |
Variation Margin Receivable on Futures Contracts | | 42,685 | | - | | - |
Total Assets | $ | 42,685 | $ | 1,216,161,626 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Variation Margin Payable on Futures Contracts | $ | 119,359 | $ | - | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Futures, certain written options on futures, and centrally cleared swap contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Written options, written swaptions, and other swap contracts are reported at their market value at measurement date. |
Janus Henderson Short-Term Bond Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $1,131,122,473) | | $ | 1,141,808,703 | |
| Affiliated investments, at value (cost $74,352,923) | | | 74,352,923 | |
| Cash | | | 9,457 | |
| Deposits with brokers for futures | | | 929,000 | |
| Receivable for variation margin on futures contracts | | | 42,685 | |
| Non-interested Trustees' deferred compensation | | | 27,984 | |
| Receivables: | | | | |
| | Interest | | | 4,769,159 | |
| | Investments sold | | | 2,182,776 | |
| | Fund shares sold | | | 1,777,451 | |
| | Dividends from affiliates | | | 3,526 | |
| Other assets | | | 11,284 | |
Total Assets | | | 1,225,914,948 | |
Liabilities: | | | | |
| Payable for variation margin on futures contracts | | | 119,359 | |
| Payables: | | | — | |
| | TBA investments purchased | | | 52,467,632 | |
| | Investments purchased | | | 19,982,240 | |
| | Fund shares repurchased | | | 1,974,914 | |
| | Advisory fees | | | 361,582 | |
| | Transfer agent fees and expenses | | | 188,308 | |
| | Professional fees | | | 59,408 | |
| | Dividends | | | 54,744 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 36,108 | |
| | Non-interested Trustees' deferred compensation fees | | | 27,984 | |
| | Non-interested Trustees' fees and expenses | | | 4,614 | |
| | Affiliated fund administration fees payable | | | 2,367 | |
| | Custodian fees | | | 1,458 | |
| | Accrued expenses and other payables | | | 140,449 | |
Total Liabilities | | | 75,421,167 | |
Net Assets | | $ | 1,150,493,781 | |
| | |
See Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson Short-Term Bond Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,155,986,748 | |
| Total distributable earnings (loss) | | | (5,492,967) | |
Total Net Assets | | $ | 1,150,493,781 | |
Net Assets - Class A Shares | | $ | 77,673,485 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 25,209,492 | |
Net Asset Value Per Share(1) | | $ | 3.08 | |
Maximum Offering Price Per Share(2) | | $ | 3.16 | |
Net Assets - Class C Shares | | $ | 23,656,006 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 7,692,989 | |
Net Asset Value Per Share(1) | | $ | 3.08 | |
Net Assets - Class D Shares | | $ | 207,595,571 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 67,331,673 | |
Net Asset Value Per Share | | $ | 3.08 | |
Net Assets - Class I Shares | | $ | 421,532,855 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 136,905,146 | |
Net Asset Value Per Share | | $ | 3.08 | |
Net Assets - Class N Shares | | $ | 15,815,941 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,152,760 | |
Net Asset Value Per Share | | $ | 3.07 | |
Net Assets - Class S Shares | | $ | 660,144 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 214,749 | |
Net Asset Value Per Share | | $ | 3.07 | |
Net Assets - Class T Shares | | $ | 403,559,779 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 130,900,283 | |
Net Asset Value Per Share | | $ | 3.08 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/97.5 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Short-Term Bond Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Interest | $ | 25,157,298 | |
| Dividends from affiliates | | 41,905 | |
| Affiliated securities lending income, net | | 3,813 | |
| Unaffiliated securities lending income, net | | 279 | |
| Other income | | 1,012,171 | |
Total Investment Income | | 26,215,466 | |
Expenses: | | | |
| Advisory fees | | 5,128,139 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 191,429 | |
| | Class C Shares | | 230,084 | |
| | Class S Shares | | 1,679 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 237,490 | |
| | Class S Shares | | 1,682 | |
| | Class T Shares | | 1,060,362 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 31,432 | |
| | Class C Shares | | 17,136 | |
| | Class I Shares | | 469,792 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 4,848 | |
| | Class C Shares | | 1,503 | |
| | Class D Shares | | 31,926 | |
| | Class I Shares | | 18,425 | |
| | Class N Shares | | 501 | |
| | Class S Shares | | 33 | |
| | Class T Shares | | 4,465 | |
| Registration fees | | 141,589 | |
| Shareholder reports expense | | 130,794 | |
| Professional fees | | 61,980 | |
| Affiliated fund administration fees | | 32,530 | |
| Non-interested Trustees’ fees and expenses | | 19,593 | |
| Custodian fees | | 11,772 | |
| Other expenses | | 129,340 | |
Total Expenses | | 7,958,524 | |
Less: Excess Expense Reimbursement and Waivers | | (549,808) | |
Net Expenses | | 7,408,716 | |
Net Investment Income/(Loss) | | 18,806,750 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | JUNE 30, 2021 |
Janus Henderson Short-Term Bond Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 16,444,597 | |
| Investments in affiliates | | (3,624) | |
| Futures contracts | | 385,268 | |
Total Net Realized Gain/(Loss) on Investments | | 16,826,241 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments and non-interested Trustees’ deferred compensation | | (5,178,336) | |
| Futures contracts | | (922,318) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (6,100,654) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 29,532,337 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Short-Term Bond Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 18,806,750 | | $ | 25,473,138 | |
| Net realized gain/(loss) on investments | | 16,826,241 | | | 5,086,389 | |
| Change in unrealized net appreciation/depreciation | | (6,100,654) | | | 9,197,662 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 29,532,337 | | | 39,757,189 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (1,247,705) | | | (1,247,210) | |
| | Class C Shares | | (297,223) | | | (390,182) | |
| | Class D Shares | | (3,728,556) | | | (4,309,441) | |
| | Class I Shares | | (7,452,379) | | | (9,144,603) | |
| | Class N Shares | | (313,285) | | | (1,028,648) | |
| | Class S Shares | | (9,698) | | | (21,741) | |
| | Class T Shares | | (7,130,790) | | | (10,649,054) | |
Net Decrease from Dividends and Distributions to Shareholders | | (20,179,636) | | | (26,790,879) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 12,056,021 | | | 6,311,519 | |
| | Class C Shares | | (3,882,252) | | | (2,522,867) | |
| | Class D Shares | | 14,311,095 | | | 11,191,769 | |
| | Class I Shares | | 37,368,586 | | | (16,871,203) | |
| | Class N Shares | | (1,464,013) | | | (20,599,757) | |
| | Class S Shares | | (135,454) | | | (383,646) | |
| | Class T Shares | | (27,028,589) | | | (98,639,780) | |
Net Increase/(Decrease) from Capital Share Transactions | | 31,225,394 | | | (121,513,965) | |
Net Increase/(Decrease) in Net Assets | | 40,578,095 | | | (108,547,655) | |
Net Assets: | | | | | | |
| Beginning of period | | 1,109,915,686 | | | 1,218,463,341 | |
| End of period | $ | 1,150,493,781 | | $ | 1,109,915,686 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
22 | JUNE 30, 2021 |
Janus Henderson Short-Term Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $3.06 | | | $3.02 | | | $2.98 | | | $3.02 | | | $3.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.06 | | | 0.07 | | | 0.05 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | 0.02 | | | 0.05 | | | 0.04 | | | (0.04) | | | (0.02) | |
| Total from Investment Operations | | 0.07 | | | 0.11 | | | 0.11 | | | 0.01 | | | 0.02 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | (0.07) | | | (0.07) | | | (0.05) | | | (0.04) | |
| Total Dividends and Distributions | | (0.05) | | | (0.07) | | | (0.07) | | | (0.05) | | | (0.04) | |
| Net Asset Value, End of Period | | $3.08 | | | $3.06 | | | $3.02 | | | $2.98 | | | $3.02 | |
| Total Return* | | 2.30% | | | 3.57% | | | 3.64% | | | 0.41% | | | 0.59% | |
| Net Assets, End of Period (in thousands) | | $77,673 | | | $65,066 | | | $57,815 | | | $52,118 | | | $82,707 | |
| Average Net Assets for the Period (in thousands) | | $76,534 | | | $56,628 | | | $57,158 | | | $61,037 | | | $118,037 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.78% | | | 0.79% | | | 0.85% | | | 0.90% | | | 0.90% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.74% | | | 0.74% | | | 0.77% | | | 0.79% | | | 0.80% | |
| | Ratio of Net Investment Income/(Loss) | | 1.51% | | | 2.10% | | | 2.25% | | | 1.69% | | | 1.18% | |
| Portfolio Turnover Rate | | 112%(2) | | | 121% | | | 79% | | | 78% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $3.05 | | | $3.01 | | | $2.97 | | | $3.02 | | | $3.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.03 | | | 0.04 | | | 0.05 | | | 0.03 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 0.03 | | | 0.04 | | | 0.04 | | | (0.05) | | | (0.02) | |
| Total from Investment Operations | | 0.06 | | | 0.08 | | | 0.09 | | | (0.02) | | | (0.01) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | (0.04) | | | (0.05) | | | (0.03) | | | (0.01) | |
| Total Dividends and Distributions | | (0.03) | | | (0.04) | | | (0.05) | | | (0.03) | | | (0.01) | |
| Net Asset Value, End of Period | | $3.08 | | | $3.05 | | | $3.01 | | | $2.97 | | | $3.02 | |
| Total Return* | | 2.04% | | | 2.84% | | | 2.90% | | | (0.69)% | | | (0.17)% | |
| Net Assets, End of Period (in thousands) | | $23,656 | | | $27,296 | | | $29,434 | | | $27,253 | | | $40,512 | |
| Average Net Assets for the Period (in thousands) | | $28,272 | | | $26,387 | | | $30,443 | | | $33,426 | | | $48,661 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.37% | | | 1.53% | | | 1.58% | | | 1.67% | | | 1.66% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.32% | | | 1.47% | | | 1.49% | | | 1.56% | | | 1.56% | |
| | Ratio of Net Investment Income/(Loss) | | 0.93% | | | 1.37% | | | 1.52% | | | 0.91% | | | 0.45% | |
| Portfolio Turnover Rate | | 112%(2) | | | 121% | | | 79% | | | 78% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Short-Term Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $3.06 | | | $3.02 | | | $2.98 | | | $3.03 | | | $3.05 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.07 | | | 0.07 | | | 0.06 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | 0.03 | | | 0.04 | | | 0.04 | | | (0.05) | | | (0.02) | |
| Total from Investment Operations | | 0.08 | | | 0.11 | | | 0.11 | | | 0.01 | | | 0.02 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.07) | | | (0.07) | | | (0.06) | | | (0.04) | |
| Total Dividends and Distributions | | (0.06) | | | (0.07) | | | (0.07) | | | (0.06) | | | (0.04) | |
| Net Asset Value, End of Period | | $3.08 | | | $3.06 | | | $3.02 | | | $2.98 | | | $3.03 | |
| Total Return* | | 2.47% | | | 3.74% | | | 3.81% | | | 0.24% | | | 0.75% | |
| Net Assets, End of Period (in thousands) | | $207,596 | | | $191,666 | | | $178,483 | | | $167,616 | | | $180,025 | |
| Average Net Assets for the Period (in thousands) | | $207,465 | | | $182,265 | | | $172,435 | | | $173,652 | | | $187,619 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.63% | | | 0.64% | | | 0.70% | | | 0.76% | | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.57% | | | 0.58% | | | 0.60% | | | 0.63% | | | 0.64% | |
| | Ratio of Net Investment Income/(Loss) | | 1.68% | | | 2.25% | | | 2.40% | | | 1.87% | | | 1.37% | |
| Portfolio Turnover Rate | | 112%(2) | | | 121% | | | 79% | | | 78% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $3.05 | | | $3.02 | | | $2.97 | | | $3.02 | | | $3.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.07 | | | 0.07 | | | 0.06 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | 0.04 | | | 0.03 | | | 0.05 | | | (0.05) | | | (0.02) | |
| Total from Investment Operations | | 0.09 | | | 0.10 | | | 0.12 | | | 0.01 | | | 0.02 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.07) | | | (0.07) | | | (0.06) | | | (0.04) | |
| Total Dividends and Distributions | | (0.06) | | | (0.07) | | | (0.07) | | | (0.06) | | | (0.04) | |
| Net Asset Value, End of Period | | $3.08 | | | $3.05 | | | $3.02 | | | $2.97 | | | $3.02 | |
| Total Return* | | 2.82% | | | 3.42% | | | 4.19% | | | 0.29% | | | 0.82% | |
| Net Assets, End of Period (in thousands) | | $421,533 | | | $380,901 | | | $392,758 | | | $453,776 | | | $554,512 | |
| Average Net Assets for the Period (in thousands) | | $412,021 | | | $383,912 | | | $414,017 | | | $527,072 | | | $516,841 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.60% | | | 0.61% | | | 0.65% | | | 0.68% | | | 0.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.56% | | | 0.56% | | | 0.57% | | | 0.57% | | | 0.57% | |
| | Ratio of Net Investment Income/(Loss) | | 1.69% | | | 2.27% | | | 2.43% | | | 1.91% | | | 1.45% | |
| Portfolio Turnover Rate | | 112%(2) | | | 121% | | | 79% | | | 78% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
24 | JUNE 30, 2021 |
Janus Henderson Short-Term Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $3.05 | | | $3.01 | | | $2.97 | | | $3.02 | | | $3.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.06 | | | 0.07 | | | 0.08 | | | 0.06 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 0.02 | | | 0.05 | | | 0.04 | | | (0.05) | | | (0.02) | |
| Total from Investment Operations | | 0.08 | | | 0.12 | | | 0.12 | | | 0.01 | | | 0.03 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.08) | | | (0.08) | | | (0.06) | | | (0.05) | |
| Total Dividends and Distributions | | (0.06) | | | (0.08) | | | (0.08) | | | (0.06) | | | (0.05) | |
| Net Asset Value, End of Period | | $3.07 | | | $3.05 | | | $3.01 | | | $2.97 | | | $3.02 | |
| Total Return* | | 2.61% | | | 3.89% | | | 3.95% | | | 0.37% | | | 0.89% | |
| Net Assets, End of Period (in thousands) | | $15,816 | | | $17,144 | | | $37,464 | | | $61,806 | | | $28,393 | |
| Average Net Assets for the Period (in thousands) | | $16,326 | | | $41,174 | | | $64,559 | | | $43,541 | | | $33,131 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.50% | | | 0.49% | | | 0.55% | | | 0.61% | | | 0.60% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.44% | | | 0.44% | | | 0.47% | | | 0.50% | | | 0.50% | |
| | Ratio of Net Investment Income/(Loss) | | 1.80% | | | 2.34% | | | 2.53% | | | 2.11% | | | 1.50% | |
| Portfolio Turnover Rate | | 112%(2) | | | 121% | | | 79% | | | 78% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $3.05 | | | $3.01 | | | $2.97 | | | $3.02 | | | $3.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.04 | | | 0.06 | | | 0.06 | | | 0.05 | | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | 0.02 | | | 0.04 | | | 0.04 | | | (0.05) | | | (0.02) | |
| Total from Investment Operations | | 0.06 | | | 0.10 | | | 0.10 | | | — | | | 0.01 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.04) | | | (0.06) | | | (0.06) | | | (0.05) | | | (0.03) | |
| Total Dividends and Distributions | | (0.04) | | | (0.06) | | | (0.06) | | | (0.05) | | | (0.03) | |
| Net Asset Value, End of Period | | $3.07 | | | $3.05 | | | $3.01 | | | $2.97 | | | $3.02 | |
| Total Return* | | 2.12% | | | 3.39% | | | 3.46% | | | (0.09)% | | | 0.42% | |
| Net Assets, End of Period (in thousands) | | $660 | | | $791 | | | $1,162 | | | $1,574 | | | $2,228 | |
| Average Net Assets for the Period (in thousands) | | $674 | | | $1,085 | | | $1,322 | | | $1,778 | | | $2,506 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.43% | | | 1.26% | | | 1.27% | | | 1.14% | | | 1.10% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.92% | | | 0.93% | | | 0.95% | | | 0.96% | | | 0.97% | |
| | Ratio of Net Investment Income/(Loss) | | 1.32% | | | 1.88% | | | 2.04% | | | 1.52% | | | 1.04% | |
| Portfolio Turnover Rate | | 112%(2) | | | 121% | | | 79% | | | 78% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Short-Term Bond Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $3.06 | | | $3.02 | | | $2.98 | | | $3.03 | | | $3.05 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.06 | | | 0.07 | | | 0.05 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | 0.02 | | | 0.05 | | | 0.04 | | | (0.05) | | | (0.02) | |
| Total from Investment Operations | | 0.07 | | | 0.11 | | | 0.11 | | | — | | | 0.02 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | (0.07) | | | (0.07) | | | (0.05) | | | (0.04) | |
| Total Dividends and Distributions | | (0.05) | | | (0.07) | | | (0.07) | | | (0.05) | | | (0.04) | |
| Net Asset Value, End of Period | | $3.08 | | | $3.06 | | | $3.02 | | | $2.98 | | | $3.03 | |
| Total Return* | | 2.36% | | | 3.63% | | | 3.70% | | | 0.13% | | | 0.65% | |
| Net Assets, End of Period (in thousands) | | $403,560 | | | $427,052 | | | $521,348 | | | $770,913 | | | $1,160,964 | |
| Average Net Assets for the Period (in thousands) | | $424,193 | | | $473,636 | | | $628,515 | | | $986,661 | | | $1,347,246 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.73% | | | 0.74% | | | 0.80% | | | 0.84% | | | 0.85% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.69% | | | 0.69% | | | 0.71% | | | 0.73% | | | 0.74% | |
| | Ratio of Net Investment Income/(Loss) | | 1.56% | | | 2.14% | | | 2.27% | | | 1.74% | | | 1.26% | |
| Portfolio Turnover Rate | | 112%(2) | | | 121% | | | 79% | | | 78% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
26 | JUNE 30, 2021 |
Janus Henderson Short-Term Bond Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Short-Term Bond Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks as high a level of current income as is consistent with preservation of capital. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson
Janus Henderson Short-Term Bond Fund
Notes to Financial Statements
Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with United States of America generally accepted accounting principles ("US GAAP").
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
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Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Dividends and Distributions
Dividends are declared daily and distributed monthly for the Fund. Realized capital gains, if any, are declared and distributed in December. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice,
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commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the year ended June 30, 2021 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the 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.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse
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securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital's ability to establish and maintain appropriate systems and trading.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts on commodities are valued at the settlement price on valuation date on the commodities exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract.
Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
During the year, the Fund purchased interest rate futures to increase exposure to interest rate risk.
During the year, the Fund sold interest rate futures to decrease exposure to interest rate risk.
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3. Other Investments and Strategies
Additional Investment Risk
The Fund may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes, or adverse developments specific to the issuer.
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
LIBOR Replacement Risk
The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate (LIBOR) as a reference rate for various rate calculations. On July 27, 2017, the U.K. Financial Conduct Authority announced that it intends to stop compelling or inducing banks to submit LIBOR rates after 2021. However, it remains unclear if LIBOR will continue to exist in its current, or a modified, form. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies. The U.S. Federal
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Reserve, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Financing Rate (SOFR), that is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. However, global consensus on alternative rates is lacking. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could adversely impact (i) volatility and liquidity in markets that are tied to LIBOR, (ii) the market for, or value of, specific securities or payments linked to those reference rates, (iii) availability or terms of borrowing or refinancing, or (iv) the effectiveness of hedging strategies. For these and other reasons, the elimination of LIBOR or changes to other interest rates may adversely affect the Fund’s performance and/or net asset value. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021. Markets are slowly developing in response to these new rates. Uncertainty regarding the process for amending existing contracts or instruments to transition away from LIBOR remains a concern for the Fund. The effect of any changes to, or discontinuation of, LIBOR on the Fund will vary depending, among other things, on (1) existing fallback or termination provisions in individual contracts and (2) whether, how, and when industry participants develop and adopt new reference rates and fallbacks for both legacy and new products and instruments. Accordingly, it is difficult to predict the full impact of the transition away from LIBOR on the Fund until new reference rates and fallbacks for both legacy and new products, instruments and contracts are commercially accepted.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Inflation-Linked Securities
The Fund may invest in inflation-indexed bonds, including municipal inflation-indexed bonds and corporate inflation-indexed bonds, or in derivatives that are linked to these securities. Inflation-linked bonds are fixed-income securities that have a principal value that is periodically adjusted according to the rate of inflation. If an index measuring inflation falls, the principal value of inflation-indexed bonds will typically be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Because of their inflation adjustment feature, inflation-linked bonds typically have lower yields than conventional fixed-rate bonds. In addition, inflation-linked bonds also normally decline in price when real interest rates rise. In the event of deflation, when prices decline over time, the principal and income of inflation-linked bonds would likely decline, resulting in losses to the Fund.
In the case of Treasury Inflation-Protected Securities, also known as TIPS, repayment of original bond principal upon maturity (as adjusted for inflation) is guaranteed by the U.S. Treasury. For inflation-linked bonds that do not provide a similar guarantee, the adjusted principal value of the inflation-linked bond repaid at maturity may be less than the original principal. Other non-U.S. sovereign governments also issue inflation-linked securities (sometimes referred to as “linkers”) that are tied to their own local consumer price indices. In certain of these non-U.S. jurisdictions, the repayment of the original bond principal upon the maturity of an inflation-linked bond is not guaranteed, allowing for the amount of the bond repaid at maturity to be less than par. Inflation-linked bonds may also be issued by, or related to, sovereign governments of other developed countries, emerging market countries, or companies or other entities not affiliated with governments.
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Loans
The Fund may invest in various commercial loans, including bank loans, bridge loans, debtor-in-possession (“DIP”) loans, mezzanine loans, and other fixed and floating rate loans. These loans may be acquired through loan participations and assignments or on a when-issued basis. Commercial loans will comprise no more than 20% of the Fund’s total assets. Below are descriptions of the types of loans held by the Fund as of June 30, 2021.
· Bank Loans - Bank loans are obligations of companies or other entities entered into in connection with recapitalizations, acquisitions, and refinancings. The Fund’s 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.
· Floating Rate Loans – Floating rate loans are debt securities that have floating interest rates, that adjust periodically, and are tied to a benchmark lending rate, such as London Interbank Offered Rate (“LIBOR”). In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (‘‘borrowers’’) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. While the Fund generally expects to invest in fully funded term loans, certain of the loans in which the Fund may invest include revolving loans, bridge loans, and delayed draw term loans.
Purchasers of floating rate loans may pay and/or receive certain fees. The Fund may receive fees such as covenant waiver fees or prepayment penalty fees. The Fund may pay fees such as facility fees. Such fees may affect the Fund’s return.
· Mezzanine Loans - Mezzanine loans are secured by the stock of the company that owns the assets. Mezzanine loans are a hybrid of debt and equity financing that is typically used to fund the expansion of existing companies. A mezzanine loan is composed of debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. Mezzanine loans typically are the most subordinated debt obligation in an issuer’s capital structure.
Mortgage- and Asset-Backed Securities
Mortgage- and asset-backed securities represent interests in “pools” of commercial or residential mortgages or other assets, including consumer and commercial loans or receivables. The Fund may purchase fixed or variable rate commercial or residential mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. Ginnie Mae’s guarantees are backed as to the timely payment of principal and interest by the full faith and credit of the U.S. Government. Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. Since that time, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases and Treasury and Federal Reserve purchases of their mortgage-backed securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac.
The Fund may also purchase other mortgage- and asset-backed securities through single- and multi-seller conduits, collateralized debt obligations, structured investment vehicles, and other similar securities. Asset-backed securities may be backed by various consumer obligations, including automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying loans are not paid, the securities’ issuer could be forced to sell the assets
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and recognize losses on such assets, which could impact your return. Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Mortgage- and asset-backed securities are subject to both extension risk, where borrowers pay off their debt obligations more slowly in times of rising interest rates, and prepayment risk, where borrowers pay off their debt obligations sooner than expected in times of declining interest rates. These risks may reduce the Fund’s returns. In addition, investments in mortgage- and asset-backed securities, including those comprised of subprime mortgages, may be subject to a higher degree of credit risk, valuation risk, extension risk (if interest rates rise), and liquidity risk than various other types of fixed-income securities. Additionally, although mortgage-backed securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that guarantors or insurers will meet their obligations.
Real Estate Investing
The Fund may invest 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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the Securities and Exchange Commission (the "SEC"). If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to primarily invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or
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105% value of the securities on loan. The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations.
There were no securities on loan as of June 30, 2021.
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt of less developed countries, 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 debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including, but not limited to, 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 debtor’s 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 debtor’s ability or willingness to timely service its debts. The 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 Fund’s 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 Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
TBA Commitments
The Fund may enter into “to be announced” or “TBA” commitments. TBAs are forward agreements for the purchase or sale of securities, including mortgage-backed securities, for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate, and mortgage terms. Although the particular TBA securities must meet industry-accepted “good delivery” standards, there can be no assurance that a security purchased on forward commitment basis will ultimately be issued or delivered by the counterparty. During the settlement period, the Fund will still bear the risk of any decline in the value of the security to be delivered. Because TBA commitments do not require the purchase and sale of identical securities, the characteristics of the security delivered to the Fund may be less favorable than the security delivered to the dealer. If the counterparty to a transaction fails to deliver the security, the Fund could suffer a loss.
To facilitate TBA commitments, the Fund is required to segregate or otherwise earmark liquid assets marked to market daily in an amount at least equal to such TBA commitments. Rules of the Financial Industry Regulatory Authority (“FINRA”) which are expected to be effective in October 2021, include mandatory margin requirements for TBA commitments which, in some circumstances, will require the Fund to also post collateral. These collateral requirements may increase costs associated with the Fund’s participation in the TBA market.
When-Issued, Delayed Delivery and Forward Commitment Transactions
The Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis. When purchasing a security on a when-issued, delayed delivery, or forward commitment basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made. Because the Fund is not required to pay for the security until the delivery date, these risks are in addition to the risks associated with the Fund’s other investments. If the other party to a transaction fails to deliver the securities, the Fund could miss a favorable price or yield opportunity. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases are outstanding, the purchases may result in a form of leverage. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases (including TBA commitments) are outstanding, the purchases may result in a form of leverage.
Janus Henderson Short-Term Bond Fund
Notes to Financial Statements
When the Fund has sold a security on a when-issued, delayed delivery, or forward commitment basis, the Fund does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to pay for the securities, the Fund could suffer a loss. Additionally, when selling a security on a when-issued, delayed delivery, or forward commitment basis without owning the security, the Fund will incur a loss if the security’s price appreciates in value such that the security’s price is above the agreed upon price on the settlement date. The Fund may dispose of or renegotiate a transaction after it is entered into, and may purchase or sell when-issued, delayed delivery or forward commitment securities before the settlement date, which may result in a gain or loss.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.44% of its average daily net assets.
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.44% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other
Janus Henderson Short-Term Bond Fund
Notes to Financial Statements
financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities.
Janus Henderson Short-Term Bond Fund
Notes to Financial Statements
Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 2.50% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $25,663.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class A Shares paid CDSCs of $489 to Janus Henderson Distributors.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $6,005.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by Janus Capital in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the year ended June 30, 2021, the Fund engaged in cross trades amounting to $988,274 in purchases and $33,765,105 in sales, resulting in a net realized gain of $914,838. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Janus Henderson Short-Term Bond Fund
Notes to Financial Statements
Other book to tax differences primarily consist of deferred compensation and derivatives. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 240,765 | $ - | $ (14,244,015) | $ - | $ - | $ (27,983) | $ 8,538,266 | |
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended June 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(12,310,385) | $(1,933,630) | $ (14,244,015) | | |
During the year ended June 30, 2021, capital loss carryovers of $14,756,431 were utilized by the Fund.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 1,207,623,360 | $ 9,830,566 | $ (1,292,300) | $ 8,538,266 |
Information on the tax components of derivatives as of June 30, 2021 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (876,959) | $ - | $ - | $ - |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 20,179,636 | $ - | $ - | $ - | |
Janus Henderson Short-Term Bond Fund
Notes to Financial Statements
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 26,790,879 | $ - | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ - | $ 1,547,945 | $ (1,547,945) |
Janus Henderson Short-Term Bond Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 13,187,059 | $ 40,609,136 | | 16,625,373 | $ 49,998,329 |
Reinvested dividends and distributions | 345,398 | 1,064,189 | | 338,053 | 1,019,631 |
Shares repurchased | (9,614,892) | (29,617,304) | | (14,827,724) | (44,706,441) |
Net Increase/(Decrease) | 3,917,565 | $ 12,056,021 | | 2,135,702 | $ 6,311,519 |
Class C Shares: | | | | | |
Shares sold | 5,525,136 | $ 16,981,556 | | 6,774,975 | $ 20,277,409 |
Reinvested dividends and distributions | 89,805 | 276,255 | | 106,812 | 321,492 |
Shares repurchased | (6,871,458) | (21,140,063) | | (7,701,478) | (23,121,768) |
Net Increase/(Decrease) | (1,256,517) | $ (3,882,252) | | (819,691) | $ (2,522,867) |
Class D Shares: | | | | | |
Shares sold | 23,731,931 | $ 73,144,037 | | 21,357,094 | $ 64,415,587 |
Reinvested dividends and distributions | 1,178,293 | 3,634,403 | | 1,388,036 | 4,190,283 |
Shares repurchased | (20,259,770) | (62,467,345) | | (19,172,299) | (57,414,101) |
Net Increase/(Decrease) | 4,650,454 | $ 14,311,095 | | 3,572,831 | $ 11,191,769 |
Class I Shares: | | | | | |
Shares sold | 71,404,362 | $219,862,802 | | 66,456,387 | $199,481,831 |
Reinvested dividends and distributions | 2,273,591 | 6,998,878 | | 2,823,541 | 8,511,945 |
Shares repurchased | (61,499,492) | (189,493,094) | | (74,770,977) | (224,864,979) |
Net Increase/(Decrease) | 12,178,461 | $ 37,368,586 | | (5,491,049) | $ (16,871,203) |
Class N Shares: | | | | | |
Shares sold | 1,734,787 | $ 5,331,585 | | 12,003,937 | $ 36,127,366 |
Reinvested dividends and distributions | 101,012 | 310,642 | | 312,024 | 940,264 |
Shares repurchased | (2,310,961) | (7,106,240) | | (19,119,310) | (57,667,387) |
Net Increase/(Decrease) | (475,162) | $ (1,464,013) | | (6,803,349) | $ (20,599,757) |
Class S Shares: | | | | | |
Shares sold | 44,302 | $ 136,124 | | 88,858 | $ 267,627 |
Reinvested dividends and distributions | 3,147 | 9,681 | | 7,153 | 21,541 |
Shares repurchased | (91,940) | (281,259) | | (222,678) | (672,814) |
Net Increase/(Decrease) | (44,491) | $ (135,454) | | (126,667) | $ (383,646) |
Class T Shares: | | | | | |
Shares sold | 19,115,175 | $ 58,933,323 | | 18,795,856 | $ 56,755,705 |
Reinvested dividends and distributions | 2,282,467 | 7,043,848 | | 3,486,689 | 10,529,148 |
Shares repurchased | (30,151,248) | (93,005,760) | | (55,222,335) | (165,924,633) |
Net Increase/(Decrease) | (8,753,606) | $ (27,028,589) | | (32,939,790) | $ (98,639,780) |
7. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$814,615,633 | $1,060,275,670 | $ 423,887,814 | $ 187,728,955 |
8. Recent Accounting Pronouncements
The FASB issued Accounting Standards Update 2020-04 Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) in March 2020. The new guidance in the ASU provide
Janus Henderson Short-Term Bond Fund
Notes to Financial Statements
optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR or other interbank-offered based reference rates as of the end of 2021. For new and existing contracts, Funds may elect to apply the guidance as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of the ASU’s adoption to the Fund’s financial statements.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Short-Term Bond Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Short-Term Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Short-Term Bond Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Short-Term Bond Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Short-Term Bond Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Short-Term Bond Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Short-Term Bond Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Short-Term Bond Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Section 163(j) Interest Dividend | 98% |
Janus Henderson Short-Term Bond Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Short-Term Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Short-Term Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Short-Term Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Short-Term Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Short-Term Bond Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Short-Term Bond Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Michael Keough
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Short-Term Bond Fund | 12/19-Present | Portfolio Manager for other Janus Henderson accounts. |
Seth Meyer
151 Detroit Street
Denver, CO 80206
DOB: 1976 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Short-Term Bond Fund | 12/19-Present
| Portfolio Manager for other Janus Henderson accounts. |
Greg Wilensky
151 Detroit Street
Denver, CO 80206
DOB: 1967 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Short-Term Bond Fund | 2/20-Present | Head of U.S. Fixed-Income of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. Formerly, Director and Lead Portfolio Manager of the U.S. Multi-Sector Fixed Income team at AllianceBernstein (2007-2019). |
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Janus Henderson Short-Term Bond Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
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Janus Henderson Short-Term Bond Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93030 08-21 |
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| | | ANNUAL REPORT June 30, 2021 |
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| | Janus Henderson Small Cap Value Fund |
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| | Janus Investment Fund |
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| | | |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Small Cap Value Fund
Janus Henderson Small Cap Value Fund (unaudited)(closed to certain new investors)
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FUND SNAPSHOT As defensive value specialists, we look to invest in high-quality companies that have strong management teams, stable balance sheets and durable competitive advantages and are trading at attractive valuations. We seek to achieve excess returns over full market cycles with less risk than our benchmark and peers as measured by standard deviation, beta and down-market capture. | | | | 
Craig Kempler co-portfolio manager | 
Justin Tugman co-portfolio manager |
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PERFORMANCE
For the 12-month period ended June 30, 2021, the Janus Henderson Small Cap Value Fund Class I shares returned 43.45%, underperforming its benchmark, the Russell 2000® Value Index, which returned 73.28%.
INVESTMENT ENVIRONMENT
Stocks delivered positive returns over the period, with gains primarily driven by positive COVID-19 vaccine developments, the U.S. presidential election results, the continuation of unprecedented monetary and fiscal stimulus and, in 2021, healthy economic and earnings growth following the easing of COVID-19 restrictions. For much of the period, high-beta stocks (those with greater volatility compared with the overall market) and non-earners drove the index, and growth stocks outperformed value stocks. Cyclical sectors outperformed, led by communication services, consumer discretionary, energy and materials. The index returned 33% during the fourth quarter of 2020 – its strongest quarter in the last 10 years – driven by positive vaccine news.
In the second half of the period, rising interest rates and higher inflation expectations – as evidenced by the 10-year Treasury yield doubling and the yield curve steepening – led to a sharp outperformance of value relative to growth. Yields subsequently retreated, however, as commodity prices moderated and the Federal Reserve (Fed) signaled it may taper some of its policy support. More speculative, short interest covering behavior dominated the market toward period end.
PERFORMANCE DISCUSSION
Negative stock selection drove relative underperformance over the period, namely in consumer discretionary, materials and industrials. Our underweight to the energy sector also detracted, as energy stocks rebounded with global demand. Within industrials, defense contractor BWX Technologies was one prominent detractor, as the company faced concerns over potential cuts to the Department of Defense budget. In our view, these concerns were overdone, as the Biden administration’s initial budget request included higher defense spending on a year-over-year basis. Because we believed negative sentiment toward defense stocks was out of line with fundamentals, we took advantage of reduced valuations to add to several defense-oriented names. Uniform and workwear provider UniFirst also dragged on performance due to decreased revenues early in the period owing to the pandemic’s impact on customers’ operations and wearer levels, and later in the period on concerns about the company’s pace of recovery.
Relative performance in health care was positive, owing to stock selection as well as an underweight in the sector. Underweight allocations in utilities and real estate also contributed. In health care, dental products manufacturer and developer Envista was among the top individual contributors to relative performance, as demand for dental services in its developed markets increased to near pre-pandemic levels by the end of first quarter 2021. Another top contributor was investment banking advisory Evercore, which delivered strong results over the period.
We continued to use the disconnect between stock prices and fundamentals toward period end to our advantage, adding to our health care exposure as we found attractive buying opportunities. To fund these investments, we took profits in materials and financials stocks that have outperformed on a relative basis. We also scaled back exposure to consumer discretionary stocks as we believe the good news around reopening is already largely priced into valuations.
OUTLOOK
While it is frustrating to see a rational market driven by fundamentals devolve into a renewed period of irrationality, it has not shaken our commitment to our disciplined investment strategy. Quality matters over the long term, and earnings, free cash flow and balance sheet strength – not social media campaigns – ultimately
Janus Henderson Small Cap Value Fund (unaudited)(closed to certain new investors)
determine a company’s value. We’d also point out that periods of irrationality can end just as quickly as they begin. While we don’t believe in trying to predict the timing of market shifts, we see several factors that may contribute to a renewed focus on fundamentals. For one thing, we believe inflation may prove more persistent than people realize, especially if companies have to pay more to attract and retain workers. Historically, periods of higher inflation have rewarded value over growth. The resulting upward pressure on interest rates would also benefit more interest-rate driven investments such as banks, which are heavily weighted in the value indices. We also caution that as we head into 2022, economic and earnings growth may look less rosy when compared to the artificially supported levels of early 2021, and this could also temper investor euphoria. Additionally, we remain positive on the outlook for small-cap stocks. While the valuation gap with large caps has narrowed, small-cap stocks have historically offered better longer-term earnings growth potential relative to their larger counterparts. Above all, we remain committed to using periods of volatility to our advantage, investing in the high-quality companies that may be undervalued by the market.
Thank you for your investment in the Janus Henderson Small Cap Value Fund.
Janus Henderson Small Cap Value Fund (unaudited)(closed to certain new investors)
Fund At A Glance
June 30, 2021
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Evercore Inc | 0.91% | | 0.60% | | Hanover Insurance Group Inc | 2.54% | | -1.18% |
| Korn Ferry | 1.37% | | 0.53% | | BWX Technologies Inc | 1.52% | | -1.16% |
| Century Casinos Inc | 0.46% | | 0.43% | | NewMarket Corp | 0.98% | | -1.11% |
| Skyline Champion Corp | 0.70% | | 0.41% | | Equity Commonwealth | 0.87% | | -1.02% |
| Envista Holdings Corp | 1.54% | | 0.38% | | UniFirst Corp/MA | 2.62% | | -0.99% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2000 Value Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | 1.18% | | 4.69% | 6.53% |
| Utilities | | -0.13% | | 3.44% | 4.43% |
| Real Estate | | -0.59% | | 7.56% | 9.10% |
| Consumer Staples | | -1.85% | | 4.45% | 3.49% |
| Other** | | -1.89% | | 2.34% | 0.00% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2000 Value Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | -6.06% | | 9.82% | 13.26% |
| Materials | | -4.86% | | 8.34% | 5.98% |
| Industrials | | -4.86% | | 19.84% | 16.80% |
| Energy | | -2.59% | | 2.04% | 4.63% |
| Information Technology | | -2.59% | | 9.82% | 5.99% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
** | Not a GICS classified sector. |
Janus Henderson Small Cap Value Fund (unaudited)(closed to certain new investors)
Fund At A Glance
June 30, 2021
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5 Largest Equity Holdings - (% of Net Assets) |
STAG Industrial Inc | |
Equity Real Estate Investment Trusts (REITs) | 2.6% |
UniFirst Corp/MA | |
Commercial Services & Supplies | 2.3% |
Sunstone Hotel Investors Inc | |
Equity Real Estate Investment Trusts (REITs) | 2.1% |
United Community Banks Inc/GA | |
Banks | 2.1% |
Atlantic Union Bankshares Corp | |
Banks | 2.1% |
| | 11.2% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.9% | |
Repurchase Agreements | | 1.9% | |
Other | | 0.2% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of June 30, 2021 
| As of June 30, 2020 
|
Janus Henderson Small Cap Value Fund (unaudited)(closed to certain new investors)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV(1) | | 42.99% | 9.33% | 8.56% | | | 1.86% | 1.47% |
Class A Shares at MOP(1) | | 34.79% | 8.04% | 7.92% | | | | |
Class C Shares at NAV(1) | | 42.07% | 8.67% | 7.87% | | | 1.97% | 1.97% |
Class C Shares at CDSC(1) | | 41.07% | 8.67% | 7.87% | | | | |
Class D Shares(1) | | 43.43% | 9.67% | 8.89% | | | 1.01% | 1.01% |
Class I Shares(1) | | 43.45% | 9.70% | 8.93% | | | 1.01% | 1.01% |
Class L Shares(2) | | 43.60% | 9.81% | 9.03% | | | 1.06% | 1.06% |
Class N Shares(1) | | 43.57% | 9.84% | 9.04% | | | 0.86% | 0.86% |
Class R Shares(1) | | 42.49% | 9.02% | 8.25% | | | 1.61% | 1.61% |
Class S Shares(1) | | 42.91% | 9.29% | 8.52% | | | 1.36% | 1.36% |
Class T Shares(1) | | 43.30% | 9.58% | 8.80% | | | 1.10% | 1.10% |
Russell 2000 Value Index | | 73.28% | 13.62% | 10.85% | | | | |
Morningstar Quartile - Class T Shares | | 4th | 4th | 4th | | | | |
Morningstar Ranking - based on total returns for Small Value Funds | | 426/438 | 358/419 | 297/382 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
Janus Henderson Small Cap Value Fund (unaudited)(closed to certain new investors)
Performance
Class L Shares have a voluntarily agreed administrative fee waiver, which could be changed or terminated at any time.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares and Class S Shares commenced operations on July 6, 2009. Performance shown for each class reflects the performance of the Fund’s Class J Shares (formerly named Investor Shares) for periods prior to July 6, 2009, calculated using the fees and expenses of the corresponding class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares (formerly named Investor Shares).
Class I Shares commenced operations on July 6, 2009. Performance shown reflects the performance of the Fund’s Class J Shares (formerly named Investor Shares) for periods prior to July 6, 2009, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares of the Fund commenced operations on May 31, 2012. Performance shown for Class N Shares reflects the performance of the Fund’s Class T Shares from July 6, 2009 to May 31, 2012, calculated using the fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers. For periods prior to July 6, 2009, the performance shown for Class N Shares reflects the performance of the Fund’s Class J Shares (formerly named Investor Shares), calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class T Shares (formerly named Class J Shares) commenced operations with the Fund’s inception. Performance shown for Class T Shares reflects the fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
(1) Closed to certain new investors.
(2) Closed to new investors.
Janus Henderson Small Cap Value Fund (unaudited)(closed to certain new investors)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $1,167.50 | $5.75 | | $1,000.00 | $1,019.49 | $5.36 | 1.07% |
Class C Shares | $1,000.00 | $1,164.10 | $8.96 | | $1,000.00 | $1,016.51 | $8.35 | 1.67% |
Class D Shares | $1,000.00 | $1,169.70 | $4.25 | | $1,000.00 | $1,020.88 | $3.96 | 0.79% |
Class I Shares | $1,000.00 | $1,169.90 | $4.04 | | $1,000.00 | $1,021.08 | $3.76 | 0.75% |
Class L Shares | $1,000.00 | $1,170.40 | $3.44 | | $1,000.00 | $1,021.62 | $3.21 | 0.64% |
Class N Shares | $1,000.00 | $1,170.20 | $3.34 | | $1,000.00 | $1,021.72 | $3.11 | 0.62% |
Class R Shares | $1,000.00 | $1,165.80 | $7.36 | | $1,000.00 | $1,018.00 | $6.85 | 1.37% |
Class S Shares | $1,000.00 | $1,167.20 | $5.96 | | $1,000.00 | $1,019.29 | $5.56 | 1.11% |
Class T Shares | $1,000.00 | $1,169.10 | $4.63 | | $1,000.00 | $1,020.53 | $4.31 | 0.86% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Small Cap Value Fund
Schedule of Investments
June 30, 2021
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Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.9% | | | |
Aerospace & Defense – 2.8% | | | |
| | BWX Technologies Inc | | 817,262 | | | $47,499,267 | |
| | Mercury Systems Inc* | | 500,168 | | | 33,151,135 | |
| | Vectrus Inc*,£ | | 641,291 | | | 30,519,039 | |
| | | 111,169,441 | |
Auto Components – 1.2% | | | |
| | Stoneridge Inc*,£ | | 1,639,306 | | | 48,359,527 | |
Banks – 16.8% | | | |
| | Ameris Bancorp | | 1,567,641 | | | 79,369,664 | |
| | Atlantic Union Bankshares Corp | | 2,351,662 | | | 85,177,198 | |
| | Bank of Hawaii Corp | | 308,431 | | | 25,976,059 | |
| | Enterprise Financial Services Corp | | 579,644 | | | 26,889,685 | |
| | FB Financial Corp | | 1,068,974 | | | 39,894,110 | |
| | First Horizon National Corp | | 4,344,297 | | | 75,069,452 | |
| | Fulton Financial Corp | | 3,938,104 | | | 62,143,281 | |
| | Great Western Bancorp Inc | | 1,763,331 | | | 57,819,623 | |
| | Horizon Bancorp Inc/IN | | 1,964,513 | | | 34,241,462 | |
| | Sandy Spring Bancorp Inc | | 633,233 | | | 27,944,572 | |
| | United Bankshares Inc | | 2,163,586 | | | 78,970,889 | |
| | United Community Banks Inc/GA | | 2,676,256 | | | 85,666,955 | |
| | | 679,162,950 | |
Biotechnology – 0.7% | | | |
| | Anika Therapeutics Inc* | | 197,195 | | | 8,536,572 | |
| | Emergent BioSolutions Inc* | | 327,152 | | | 20,607,304 | |
| | | 29,143,876 | |
Building Products – 2.0% | | | |
| | American Woodmark Corp* | | 587,893 | | | 48,024,979 | |
| | PGT Innovations Inc* | | 1,367,693 | | | 31,771,508 | |
| | | 79,796,487 | |
Capital Markets – 0.7% | | | |
| | Evercore Inc£ | | 216,821 | | | 30,521,892 | |
Chemicals – 3.3% | | | |
| | American Vanguard Corp | | 1,392,722 | | | 24,386,562 | |
| | Ingevity Corp* | | 499,653 | | | 40,651,768 | |
| | Innospec Inc | | 763,928 | | | 69,219,516 | |
| | | 134,257,846 | |
Commercial Services & Supplies – 5.3% | | | |
| | Healthcare Services Group Inc | | 1,651,281 | | | 52,130,941 | |
| | KAR Auction Services Inc* | | 3,892,867 | | | 68,319,816 | |
| | UniFirst Corp/MA | | 393,155 | | | 92,249,889 | |
| | | 212,700,646 | |
Construction & Engineering – 2.3% | | | |
| | Comfort Systems USA Inc | | 619,362 | | | 48,799,532 | |
| | EMCOR Group Inc | | 374,370 | | | 46,118,640 | |
| | | 94,918,172 | |
Construction Materials – 2.0% | | | |
| | Eagle Materials Inc | | 555,831 | | | 78,989,143 | |
Electrical Equipment – 3.5% | | | |
| | Encore Wire Corp£ | | 556,864 | | | 42,204,723 | |
| | GrafTech International Ltd | | 6,779,659 | | | 78,779,638 | |
| | Thermon Group Holdings Inc*,£ | | 1,130,930 | | | 19,271,047 | |
| | | 140,255,408 | |
Electronic Equipment, Instruments & Components – 4.3% | | | |
| | Benchmark Electronics Inc | | 370,927 | | | 10,556,582 | |
| | Fabrinet* | | 615,670 | | | 59,024,283 | |
| | Insight Enterprises Inc* | | 520,094 | | | 52,014,601 | |
| | Rogers Corp* | | 157,754 | | | 31,677,003 | |
| | Vishay Intertechnology Inc | | 914,096 | | | 20,612,865 | |
| | | 173,885,334 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Small Cap Value Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Entertainment – 1.5% | | | |
| | Madison Square Garden Co* | | 340,412 | | | $58,744,899 | |
Equity Real Estate Investment Trusts (REITs) – 6.1% | | | |
| | Corporate Office Properties Trust | | 2,046,771 | | | 57,289,120 | |
| | STAG Industrial Inc | | 2,751,726 | | | 102,997,104 | |
| | Sunstone Hotel Investors Inc* | | 6,928,774 | | | 86,055,373 | |
| | | 246,341,597 | |
Food & Staples Retailing – 1.2% | | | |
| | Casey's General Stores Inc | | 249,637 | | | 48,589,346 | |
Food Products – 2.2% | | | |
| | Nomad Foods Ltd* | | 1,956,898 | | | 55,321,506 | |
| | Sanderson Farms Inc | | 183,542 | | | 34,500,390 | |
| | | 89,821,896 | |
Health Care Equipment & Supplies – 6.1% | | | |
| | Envista Holdings Corp* | | 1,747,760 | | | 75,520,710 | |
| | Globus Medical Inc* | | 521,873 | | | 40,460,814 | |
| | Haemonetics Corp* | | 405,399 | | | 27,015,789 | |
| | Natus Medical Inc* | | 1,099,731 | | | 28,571,011 | |
| | Quidel Corp* | | 165,586 | | | 21,214,878 | |
| | Varex Imaging Corp*,£ | | 2,017,108 | | | 54,098,837 | |
| | | 246,882,039 | |
Health Care Providers & Services – 0.4% | | | |
| | ModivCare Inc* | | 96,487 | | | 16,409,544 | |
Hotels, Restaurants & Leisure – 2.6% | | | |
| | Bally's Corp* | | 233,656 | | | 12,643,126 | |
| | Century Casinos Inc*,£ | | 2,207,692 | | | 29,649,304 | |
| | Cracker Barrel Old Country Store Inc | | 420,647 | | | 62,449,254 | |
| | | 104,741,684 | |
Household Durables – 2.7% | | | |
| | Leggett & Platt Inc | | 969,803 | | | 50,245,493 | |
| | Skyline Champion Corp* | | 1,121,640 | | | 59,783,412 | |
| | | 110,028,905 | |
Information Technology Services – 1.7% | | | |
| | WNS Holdings Ltd (ADR)* | | 841,102 | | | 67,178,817 | |
Insurance – 3.2% | | | |
| | Argo Group International Holdings Ltd | | 721,063 | | | 37,372,695 | |
| | First American Financial Corp | | 381,075 | | | 23,760,026 | |
| | Hanover Insurance Group Inc | | 516,276 | | | 70,027,677 | |
| | | 131,160,398 | |
Internet & Direct Marketing Retail – 0.7% | | | |
| | Shutterstock Inc | | 272,163 | | | 26,718,242 | |
Machinery – 2.6% | | | |
| | Lincoln Electric Holdings Inc | | 452,708 | | | 59,626,171 | |
| | Watts Water Technologies Inc - Class A | | 302,881 | | | 44,193,367 | |
| | | 103,819,538 | |
Metals & Mining – 1.8% | | | |
| | Commercial Metals Co | | 2,311,059 | | | 70,995,732 | |
Multi-Utilities – 2.0% | | | |
| | Black Hills Corp | | 965,889 | | | 63,391,295 | |
| | NorthWestern Corp | | 289,092 | | | 17,409,120 | |
| | | 80,800,415 | |
Oil, Gas & Consumable Fuels – 2.4% | | | |
| | Delek US Holdings Inc | | 1,693,996 | | | 36,624,194 | |
| | World Fuel Services Corp | | 1,966,900 | | | 62,409,737 | |
| | | 99,033,931 | |
Pharmaceuticals – 0.3% | | | |
| | Amphastar Pharmaceuticals Inc* | | 534,713 | | | 10,779,814 | |
Professional Services – 2.1% | | | |
| | Korn Ferry | | 689,069 | | | 49,991,956 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Small Cap Value Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Professional Services– (continued) | | | |
| | Mantech International Corp | | 398,639 | | | $34,498,219 | |
| | | 84,490,175 | |
Real Estate Management & Development – 0.7% | | | |
| | Marcus & Millichap Inc* | | 720,834 | | | 28,018,818 | |
Semiconductor & Semiconductor Equipment – 2.3% | | | |
| | CMC Materials Inc | | 350,523 | | | 52,837,837 | |
| | Diodes Inc* | | 480,821 | | | 38,355,091 | |
| | | 91,192,928 | |
Software – 1.0% | | | |
| | CDK Global Inc | | 833,142 | | | 41,398,826 | |
Textiles, Apparel & Luxury Goods – 3.5% | | | |
| | Carter's Inc | | 456,818 | | | 47,129,913 | |
| | Columbia Sportswear Co | | 573,538 | | | 56,413,198 | |
| | Steven Madden Ltd | | 830,337 | | | 36,335,547 | |
| | | 139,878,658 | |
Thrifts & Mortgage Finance – 2.4% | | | |
| | Washington Federal Inc | | 1,002,161 | | | 31,848,677 | |
| | WSFS Financial Corp | | 1,361,073 | | | 63,412,391 | |
| | | 95,261,068 | |
Trading Companies & Distributors – 3.5% | | | |
| | GATX Corp | | 372,958 | | | 32,995,594 | |
| | H&E Equipment Services Inc | | 1,476,864 | | | 49,135,265 | |
| | MSC Industrial Direct Co Inc | | 663,578 | | | 59,542,854 | |
| | | 141,673,713 | |
Total Common Stocks (cost $2,965,995,943) | | 3,947,121,705 | |
Repurchase Agreements– 1.9% | | | |
| | ING Financial Markets LLC, Joint repurchase agreement, 0.0300%, dated 6/30/21, maturing 7/1/21 to be repurchased at $20,700,017 collateralized by $18,706,720 in U.S. Treasuries 0% - 4.2500%, 11/12/21 - 2/15/51 with a value of $21,114,060 | | $20,700,000 | | | 20,700,000 | |
| | ING Financial Markets LLC, Joint repurchase agreement, 0.0300%, dated 6/30/21, maturing 7/1/21 to be repurchased at $5,000,004 collateralized by $4,967,507 in U.S. Treasuries 0% - 2.8750%, 10/7/21 - 2/15/45 with a value of $5,100,005 | | 5,000,000 | | | 5,000,000 | |
| | Royal Bank of Canada, NY Branch, Joint repurchase agreement, 0.0300%, dated 6/30/21, maturing 7/1/21 to be repurchased at $50,000,042 collateralized by $44,607,532 in U.S. Treasuries 0.8750% - 6.2500%, 8/15/23 - 8/15/49 with a value of $51,000,051 | | 50,000,000 | | | 50,000,000 | |
Total Repurchase Agreements (cost $75,700,000) | | 75,700,000 | |
Total Investments (total cost $3,041,695,943) – 99.8% | | 4,022,821,705 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.2% | | 6,774,541 | |
Net Assets – 100% | | $4,029,596,246 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $3,900,321,382 | | 96.9 | % |
India | | 67,178,817 | | 1.7 | |
United Kingdom | | 55,321,506 | | 1.4 | |
| | | | | | |
| | | | | | |
Total | | $4,022,821,705 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson Small Cap Value Fund
Schedule of Investments
June 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 6/30/21 |
Common Stocks - 4.0% |
Aerospace & Defense - 0.8% | |
| | Vectrus Inc* | $ | - | $ | (674,249) | $ | 676,465 | $ | 30,519,039 |
Auto Components - 1.2% | |
| | Stoneridge Inc* | | - | | 589,415 | | 14,496,990 | | 48,359,527 |
Capital Markets - N/A | |
| | Evercore Incš | | 832,993 | | 9,314,049 | | 21,627,256 | | N/A |
Electrical Equipment - N/A | |
| | Encore Wire Corpš | | 70,951 | | 3,560,373 | | 16,342,751 | | N/A |
| | Thermon Group Holdings Inc*,š | | - | | (3,048,414) | | 6,252,439 | | N/A |
Total Electrical Equipment | $ | 70,951 | $ | 511,959 | $ | 22,595,190 | $ | - |
Health Care Equipment & Supplies - 1.3% | |
| | Varex Imaging Corp* | | - | | - | | 21,162,405 | | 54,098,837 |
Hotels, Restaurants & Leisure - 0.7% | |
| | Century Casinos Inc* | | - | | - | | 19,986,858 | | 29,649,304 |
Specialty Retail - N/A | |
| | Hudson Ltd - Class A | | - | | (3,090,542) | | 8,278,597 | | - |
Total Affiliated Investments - 4.0% | $ | 903,944 | $ | 6,650,632 | $ | 108,823,761 | $ | 162,626,707 |
(1) For securities that were affiliated for a portion of the year ended June 30, 2021, this column reflects amounts for the entire year ended June 30, 2021 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Common Stocks - 4.0% |
Aerospace & Defense - 0.8% | |
| | Vectrus Inc* | | - | | 34,511,928 | | (3,995,105) | | 30,519,039 |
Auto Components - 1.2% | |
| | Stoneridge Inc* | | 20,692,374 | | 23,960,775 | | (11,380,027) | | 48,359,527 |
Capital Markets - N/A | |
| | Evercore Incš | | 17,909,912 | | 12,464,155 | | (30,793,480) | | 30,521,892 |
Electrical Equipment - N/A | |
| | Encore Wire Corpš | | 54,201,819 | | - | | (31,900,220) | | 42,204,723 |
| | Thermon Group Holdings Inc*,š | | 26,694,003 | | - | | (10,626,981) | | 19,271,047 |
Health Care Equipment & Supplies - 1.3% | |
| | Varex Imaging Corp* | | - | | 32,936,432 | | - | | 54,098,837 |
Hotels, Restaurants & Leisure - 0.7% | |
| | Century Casinos Inc* | | 8,019,717 | | 1,642,729 | | - | | 29,649,304 |
Specialty Retail - N/A | |
| | Hudson Ltd - Class A | | 9,663,044 | | - | | (14,851,099) | | - |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Small Cap Value Fund
Notes to Schedule of Investments and Other Information
| | |
Russell 2000® Value Index | Russell 2000® Value Index reflects the performance of U.S. small-cap equities with lower price-to-book ratios and lower forecasted growth values. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
| | |
* | Non-income producing security. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | |
š | Company was no longer an affiliate as of June 30, 2021. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | $ | 3,947,121,705 | $ | - | $ | - |
Repurchase Agreements | | - | | 75,700,000 | | - |
Total Assets | $ | 3,947,121,705 | $ | 75,700,000 | $ | - |
| | | | | | | |
Janus Henderson Small Cap Value Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,847,372,447) | | $ | 3,784,494,998 | |
| Affiliated investments, at value (cost $118,623,496) | | | 162,626,707 | |
| Repurchase agreements, at value (cost $75,700,000) | | | 75,700,000 | |
| Cash | | | 77,261 | |
| Non-interested Trustees' deferred compensation | | | 98,174 | |
| Receivables: | | | | |
| | Fund shares sold | | | 51,327,981 | |
| | Investments sold | | | 16,831,076 | |
| | Dividends | | | 5,292,963 | |
| | Interest | | | 63 | |
| Other assets | | | 7,424 | |
Total Assets | | | 4,096,456,647 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 53,481,454 | |
| | Investments purchased | | | 10,206,216 | |
| | Advisory fees | | | 2,044,728 | |
| | Transfer agent fees and expenses | | | 617,621 | |
| | Non-interested Trustees' deferred compensation fees | | | 98,174 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 64,633 | |
| | Professional fees | | | 49,681 | |
| | Non-interested Trustees' fees and expenses | | | 15,145 | |
| | Affiliated fund administration fees payable | | | 8,526 | |
| | Custodian fees | | | 3,312 | |
| | Accrued expenses and other payables | | | 270,911 | |
Total Liabilities | | | 66,860,401 | |
Net Assets | | $ | 4,029,596,246 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Small Cap Value Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,090,231,917 | |
| Total distributable earnings (loss) | | | 939,364,329 | |
Total Net Assets | | $ | 4,029,596,246 | |
Net Assets - Class A Shares | | $ | 69,385,006 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,780,723 | |
Net Asset Value Per Share(1) | | $ | 24.95 | |
Maximum Offering Price Per Share(2) | | $ | 26.47 | |
Net Assets - Class C Shares | | $ | 22,888,811 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 983,521 | |
Net Asset Value Per Share(1) | | $ | 23.27 | |
Net Assets - Class D Shares | | $ | 107,470,563 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,343,090 | |
Net Asset Value Per Share | | $ | 24.75 | |
Net Assets - Class I Shares | | $ | 2,121,332,921 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 85,333,443 | |
Net Asset Value Per Share | | $ | 24.86 | |
Net Assets - Class L Shares | | $ | 120,350,592 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,697,187 | |
Net Asset Value Per Share | | $ | 25.62 | |
Net Assets - Class N Shares | | $ | 922,072,800 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 37,151,383 | |
Net Asset Value Per Share | | $ | 24.82 | |
Net Assets - Class R Shares | | $ | 48,908,150 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,027,363 | |
Net Asset Value Per Share | | $ | 24.12 | |
Net Assets - Class S Shares | | $ | 42,715,193 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,738,317 | |
Net Asset Value Per Share | | $ | 24.57 | |
Net Assets - Class T Shares | | $ | 574,472,210 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 23,147,960 | |
Net Asset Value Per Share | | $ | 24.82 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Small Cap Value Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 60,933,509 | |
| Dividends from affiliates | | 903,944 | |
| Interest | | 27,786 | |
| Other income | | 57 | |
Total Investment Income | | 61,865,296 | |
Expenses: | | | |
| Advisory fees | | 23,425,022 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 172,492 | |
| | Class C Shares | | 216,748 | |
| | Class R Shares | | 209,205 | |
| | Class S Shares | | 114,607 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 108,148 | |
| | Class L Shares | | 221,623 | |
| | Class R Shares | | 105,421 | |
| | Class S Shares | | 114,946 | |
| | Class T Shares | | 1,389,127 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 574,108 | |
| | Class C Shares | | 20,771 | |
| | Class I Shares | | 2,589,034 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 4,575 | |
| | Class C Shares | | 1,186 | |
| | Class D Shares | | 20,138 | |
| | Class I Shares | | 88,037 | |
| | Class L Shares | | 1,992 | |
| | Class N Shares | | 28,244 | |
| | Class R Shares | | 1,024 | |
| | Class S Shares | | 1,023 | |
| | Class T Shares | | 7,612 | |
| Shareholder reports expense | | 423,156 | |
| Registration fees | | 234,737 | |
| Affiliated fund administration fees | | 103,967 | |
| Professional fees | | 74,623 | |
| Non-interested Trustees’ fees and expenses | | 60,455 | |
| Custodian fees | | 20,454 | |
| Other expenses | | 251,036 | |
Total Expenses | | 30,583,511 | |
Less: Excess Expense Reimbursement and Waivers | | (660,744) | |
Net Expenses | | 29,922,767 | |
Net Investment Income/(Loss) | | 31,942,529 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Small Cap Value Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 171,996,477 | |
| Investments in affiliates | | 6,650,632 | |
Total Net Realized Gain/(Loss) on Investments | | 178,647,109 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 990,307,823 | |
| Investments in affiliates | | 108,823,761 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 1,099,131,584 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 1,309,721,222 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Small Cap Value Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 31,942,529 | | $ | 38,994,284 | |
| Net realized gain/(loss) on investments | | 178,647,109 | | | (222,426,397) | |
| Change in unrealized net appreciation/depreciation | | 1,099,131,584 | | | (486,036,800) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 1,309,721,222 | | | (669,468,913) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (558,586) | | | (389,251) | |
| | Class C Shares | | (40,703) | | | — | |
| | Class D Shares | | (966,547) | | | (1,166,768) | |
| | Class I Shares | | (20,579,197) | | | (19,472,600) | |
| | Class L Shares | | (1,225,524) | | | (1,673,843) | |
| | Class N Shares | | (9,856,554) | | | (8,469,438) | |
| | Class R Shares | | (250,227) | | | (86,715) | |
| | Class S Shares | | (362,562) | | | (381,210) | |
| | Class T Shares | | (5,282,096) | | | (5,914,539) | |
Net Decrease from Dividends and Distributions to Shareholders | | (39,121,996) | | | (37,554,364) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (18,711,756) | | | 15,262,337 | |
| | Class C Shares | | (5,683,661) | | | (2,835,901) | |
| | Class D Shares | | (11,176,474) | | | (8,889,943) | |
| | Class I Shares | | (120,505,119) | | | 404,892,887 | |
| | Class L Shares | | (15,005,263) | | | (23,873,116) | |
| | Class N Shares | | (43,112,315) | | | 229,160,804 | |
| | Class R Shares | | 767,864 | | | 3,553,644 | |
| | Class S Shares | | (17,044,195) | | | 316,811 | |
| | Class T Shares | | (135,499,435) | | | (2,913,313) | |
Net Increase/(Decrease) from Capital Share Transactions | | (365,970,354) | | | 614,674,210 | |
Net Increase/(Decrease) in Net Assets | | 904,628,872 | | | (92,349,067) | |
Net Assets: | | | | | | |
| Beginning of period | | 3,124,967,374 | | | 3,217,316,441 | |
| End of period | $ | 4,029,596,246 | | $ | 3,124,967,374 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Small Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $17.59 | | | $21.57 | | | $23.18 | | | $23.19 | | | $19.64 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.13 | | | 0.15 | | | 0.25 | | | 0.09 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 7.40 | | | (4.00) | | | (0.39) | | | 1.87 | | | 4.26 | |
| Total from Investment Operations | | 7.53 | | | (3.85) | | | (0.14) | | | 1.96 | | | 4.33 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.13) | | | — | | | (0.01) | | | (0.05) | |
| | Distributions (from capital gains) | | — | | | — | | | (1.47) | | | (1.96) | | | (0.73) | |
| Total Dividends and Distributions | | (0.17) | | | (0.13) | | | (1.47) | | | (1.97) | | | (0.78) | |
| Net Asset Value, End of Period | | $24.95 | | | $17.59 | | | $21.57 | | | $23.18 | | | $23.19 | |
| Total Return* | | 42.99% | | | (17.98)% | | | 0.56% | | | 8.44% | | | 22.16% | |
| Net Assets, End of Period (in thousands) | | $69,385 | | | $64,025 | | | $61,505 | | | $54,782 | | | $53,732 | |
| Average Net Assets for the Period (in thousands) | | $68,997 | | | $62,337 | | | $48,049 | | | $53,655 | | | $46,728 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.76% | | | 1.86% | | | 1.27% | | | 1.35% | | | 1.36% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.11% | | | 1.39% | | | 1.14% | | | 1.26% | | | 1.35% | |
| | Ratio of Net Investment Income/(Loss) | | 0.59% | | | 0.77% | | | 1.15% | | | 0.40% | | | 0.31% | |
| Portfolio Turnover Rate | | 53% | | | 59% | | | 39% | | | 51% | | | 83% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $16.41 | | | $20.12 | | | $21.87 | | | $22.09 | | | $18.82 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.01) | | | 0.06 | | | 0.11 | | | (0.05) | | | (0.06) | |
| | Net realized and unrealized gain/(loss) | | 6.91 | | | (3.77) | | | (0.39) | | | 1.79 | | | 4.06 | |
| Total from Investment Operations | | 6.90 | | | (3.71) | | | (0.28) | | | 1.74 | | | 4.00 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.04) | | | — | | | — | | | — | | | —(2) | |
| | Distributions (from capital gains) | | — | | | — | | | (1.47) | | | (1.96) | | | (0.73) | |
| Total Dividends and Distributions | | (0.04) | | | — | | | (1.47) | | | (1.96) | | | (0.73) | |
| Net Asset Value, End of Period | | $23.27 | | | $16.41 | | | $20.12 | | | $21.87 | | | $22.09 | |
| Total Return* | | 42.07% | | | (18.44)% | | | (0.07)% | | | 7.84% | | | 21.38% | |
| Net Assets, End of Period (in thousands) | | $22,889 | | | $20,967 | | | $29,619 | | | $26,828 | | | $21,379 | |
| Average Net Assets for the Period (in thousands) | | $22,037 | | | $26,855 | | | $26,902 | | | $23,627 | | | $17,299 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.77% | | | 1.92% | | | 1.75% | | | 1.86% | | | 1.94% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.77% | | | 1.92% | | | 1.75% | | | 1.86% | | | 1.94% | |
| | Ratio of Net Investment Income/(Loss) | | (0.06)% | | | 0.30% | | | 0.56% | | | (0.24)% | | | (0.27)% | |
| Portfolio Turnover Rate | | 53% | | | 59% | | | 39% | | | 51% | | | 83% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson Small Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $17.44 | | | $21.38 | | | $22.99 | | | $23.01 | | | $19.50 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.24 | | | 0.32 | | | 0.16 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 7.35 | | | (3.96) | | | (0.41) | | | 1.86 | | | 4.21 | |
| Total from Investment Operations | | 7.53 | | | (3.72) | | | (0.09) | | | 2.02 | | | 4.35 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.22) | | | (0.22) | | | (0.05) | | | (0.08) | | | (0.11) | |
| | Distributions (from capital gains) | | — | | | — | | | (1.47) | | | (1.96) | | | (0.73) | |
| Total Dividends and Distributions | | (0.22) | | | (0.22) | | | (1.52) | | | (2.04) | | | (0.84) | |
| Net Asset Value, End of Period | | $24.75 | | | $17.44 | | | $21.38 | | | $22.99 | | | $23.01 | |
| Total Return* | | 43.43% | | | (17.65)% | | | 0.82% | | | 8.79% | | | 22.47% | |
| Net Assets, End of Period (in thousands) | | $107,471 | | | $86,650 | | | $116,468 | | | $127,533 | | | $134,026 | |
| Average Net Assets for the Period (in thousands) | | $94,637 | | | $105,847 | | | $117,978 | | | $130,614 | | | $122,637 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.84% | | | 1.01% | | | 0.83% | | | 0.96% | | | 1.04% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.84% | | | 1.01% | | | 0.83% | | | 0.96% | | | 1.04% | |
| | Ratio of Net Investment Income/(Loss) | | 0.84% | | | 1.20% | | | 1.48% | | | 0.70% | | | 0.63% | |
| Portfolio Turnover Rate | | 53% | | | 59% | | | 39% | | | 51% | | | 83% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $17.53 | | | $21.50 | | | $23.12 | | | $23.13 | | | $19.60 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.19 | | | 0.24 | | | 0.33 | | | 0.18 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 7.37 | | | (3.97) | | | (0.41) | | | 1.87 | | | 4.24 | |
| Total from Investment Operations | | 7.56 | | | (3.73) | | | (0.08) | | | 2.05 | | | 4.38 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.23) | | | (0.24) | | | (0.07) | | | (0.10) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | — | | | (1.47) | | | (1.96) | | | (0.73) | |
| Total Dividends and Distributions | | (0.23) | | | (0.24) | | | (1.54) | | | (2.06) | | | (0.85) | |
| Net Asset Value, End of Period | | $24.86 | | | $17.53 | | | $21.50 | | | $23.12 | | | $23.13 | |
| Total Return* | | 43.36% | | | (17.62)% | | | 0.89% | | | 8.85% | | | 22.50% | |
| Net Assets, End of Period (in thousands) | | $2,121,333 | | | $1,584,586 | | | $1,531,568 | | | $1,264,218 | | | $1,029,136 | |
| Average Net Assets for the Period (in thousands) | | $1,887,591 | | | $1,646,400 | | | $1,337,975 | | | $1,150,680 | | | $791,904 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.81% | | | 1.01% | | | 0.79% | | | 0.88% | | | 1.03% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.81% | | | 1.01% | | | 0.79% | | | 0.88% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | 0.87% | | | 1.19% | | | 1.52% | | | 0.77% | | | 0.66% | |
| Portfolio Turnover Rate | | 53% | | | 59% | | | 39% | | | 51% | | | 83% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Small Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class L Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $18.05 | | | $22.13 | | | $23.73 | | | $23.69 | | | $20.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.22 | | | 0.28 | | | 0.36 | | | 0.20 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 7.60 | | | (4.10) | | | (0.42) | | | 1.91 | | | 4.33 | |
| Total from Investment Operations | | 7.82 | | | (3.82) | | | (0.06) | | | 2.11 | | | 4.50 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.26) | | | (0.07) | | | (0.11) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | — | | | (1.47) | | | (1.96) | | | (0.73) | |
| Total Dividends and Distributions | | (0.25) | | | (0.26) | | | (1.54) | | | (2.07) | | | (0.85) | |
| Net Asset Value, End of Period | | $25.62 | | | $18.05 | | | $22.13 | | | $23.73 | | | $23.69 | |
| Total Return* | | 43.60% | | | (17.53)% | | | 0.97% | | | 8.91% | | | 22.63% | |
| Net Assets, End of Period (in thousands) | | $120,351 | | | $97,950 | | | $148,304 | | | $173,144 | | | $193,771 | |
| Average Net Assets for the Period (in thousands) | | $109,087 | | | $130,117 | | | $155,137 | | | $187,635 | | | $198,852 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.88% | | | 1.06% | | | 0.88% | | | 1.02% | | | 1.10% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.69% | | | 0.87% | | | 0.69% | | | 0.84% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | 1.00% | | | 1.36% | | | 1.62% | | | 0.84% | | | 0.77% | |
| Portfolio Turnover Rate | | 53% | | | 59% | | | 39% | | | 51% | | | 83% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $17.50 | | | $21.46 | | | $23.08 | | | $23.09 | | | $19.55 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.22 | | | 0.26 | | | 0.35 | | | 0.19 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 7.36 | | | (3.95) | | | (0.42) | | | 1.88 | | | 4.23 | |
| Total from Investment Operations | | 7.58 | | | (3.69) | | | (0.07) | | | 2.07 | | | 4.40 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.26) | | | (0.27) | | | (0.08) | | | (0.12) | | | (0.13) | |
| | Distributions (from capital gains) | | — | | | — | | | (1.47) | | | (1.96) | | | (0.73) | |
| Total Dividends and Distributions | | (0.26) | | | (0.27) | | | (1.55) | | | (2.08) | | | (0.86) | |
| Net Asset Value, End of Period | | $24.82 | | | $17.50 | | | $21.46 | | | $23.08 | | | $23.09 | |
| Total Return* | | 43.57% | | | (17.48)% | | | 0.97% | | | 8.97% | | | 22.67% | |
| Net Assets, End of Period (in thousands) | | $922,073 | | | $676,894 | | | $585,199 | | | $470,614 | | | $300,685 | |
| Average Net Assets for the Period (in thousands) | | $839,582 | | | $632,706 | | | $515,945 | | | $402,129 | | | $253,523 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.86% | | | 0.68% | | | 0.81% | | | 0.88% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.86% | | | 0.68% | | | 0.81% | | | 0.88% | |
| | Ratio of Net Investment Income/(Loss) | | 1.01% | | | 1.31% | | | 1.65% | | | 0.83% | | | 0.78% | |
| Portfolio Turnover Rate | | 53% | | | 59% | | | 39% | | | 51% | | | 83% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | JUNE 30, 2021 |
Janus Henderson Small Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $17.03 | | | $20.84 | | | $22.53 | | | $22.64 | | | $19.23 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.11 | | | 0.18 | | | 0.02 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 7.16 | | | (3.87) | | | (0.40) | | | 1.83 | | | 4.15 | |
| Total from Investment Operations | | 7.21 | | | (3.76) | | | (0.22) | | | 1.85 | | | 4.16 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.12) | | | (0.05) | | | — | | | — | | | (0.02) | |
| | Distributions (from capital gains) | | — | | | — | | | (1.47) | | | (1.96) | | | (0.73) | |
| Total Dividends and Distributions | | (0.12) | | | (0.05) | | | (1.47) | | | (1.96) | | | (0.75) | |
| Net Asset Value, End of Period | | $24.12 | | | $17.03 | | | $20.84 | | | $22.53 | | | $22.64 | |
| Total Return* | | 42.49% | | | (18.11)% | | | 0.20% | | | 8.15% | | | 21.78% | |
| Net Assets, End of Period (in thousands) | | $48,908 | | | $33,724 | | | $37,555 | | | $39,887 | | | $35,452 | |
| Average Net Assets for the Period (in thousands) | | $42,169 | | | $36,610 | | | $36,037 | | | $38,061 | | | $26,130 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.42% | | | 1.61% | | | 1.43% | | | 1.56% | | | 1.64% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.42% | | | 1.61% | | | 1.43% | | | 1.56% | | | 1.64% | |
| | Ratio of Net Investment Income/(Loss) | | 0.25% | | | 0.57% | | | 0.87% | | | 0.09% | | | 0.03% | |
| Portfolio Turnover Rate | | 53% | | | 59% | | | 39% | | | 51% | | | 83% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $17.32 | | | $21.23 | | | $22.85 | | | $22.89 | | | $19.41 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.11 | | | 0.17 | | | 0.24 | | | 0.09 | | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | 7.29 | | | (3.95) | | | (0.39) | | | 1.83 | | | 4.20 | |
| Total from Investment Operations | | 7.40 | | | (3.78) | | | (0.15) | | | 1.92 | | | 4.26 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.13) | | | — | | | — | | | (0.05) | |
| | Distributions (from capital gains) | | — | | | — | | | (1.47) | | | (1.96) | | | (0.73) | |
| Total Dividends and Distributions | | (0.15) | | | (0.13) | | | (1.47) | | | (1.96) | | | (0.78) | |
| Net Asset Value, End of Period | | $24.57 | | | $17.32 | | | $21.23 | | | $22.85 | | | $22.89 | |
| Total Return* | | 42.91% | | | (17.96)% | | | 0.52% | | | 8.37% | | | 22.08% | |
| Net Assets, End of Period (in thousands) | | $42,715 | | | $43,538 | | | $55,050 | | | $61,772 | | | $70,490 | |
| Average Net Assets for the Period (in thousands) | | $45,978 | | | $56,349 | | | $55,579 | | | $66,582 | | | $68,319 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.18% | | | 1.36% | | | 1.18% | | | 1.30% | | | 1.38% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.18% | | | 1.36% | | | 1.18% | | | 1.30% | | | 1.38% | |
| | Ratio of Net Investment Income/(Loss) | | 0.55% | | | 0.87% | | | 1.14% | | | 0.37% | | | 0.29% | |
| Portfolio Turnover Rate | | 53% | | | 59% | | | 39% | | | 51% | | | 83% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Small Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $17.49 | | | $21.44 | | | $23.03 | | | $23.05 | | | $19.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.17 | | | 0.22 | | | 0.30 | | | 0.14 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 7.36 | | | (3.98) | | | (0.40) | | | 1.86 | | | 4.22 | |
| Total from Investment Operations | | 7.53 | | | (3.76) | | | (0.10) | | | 2.00 | | | 4.34 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.20) | | | (0.19) | | | (0.02) | | | (0.06) | | | (0.09) | |
| | Distributions (from capital gains) | | — | | | — | | | (1.47) | | | (1.96) | | | (0.73) | |
| Total Dividends and Distributions | | (0.20) | | | (0.19) | | | (1.49) | | | (2.02) | | | (0.82) | |
| Net Asset Value, End of Period | | $24.82 | | | $17.49 | | | $21.44 | | | $23.03 | | | $23.05 | |
| Total Return* | | 43.30% | | | (17.74)% | | | 0.76% | | | 8.69% | | | 22.39% | |
| Net Assets, End of Period (in thousands) | | $574,472 | | | $516,634 | | | $652,049 | | | $787,120 | | | $805,793 | |
| Average Net Assets for the Period (in thousands) | | $555,651 | | | $621,808 | | | $681,320 | | | $805,838 | | | $721,659 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 1.10% | | | 0.92% | | | 1.05% | | | 1.13% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.92% | | | 1.10% | | | 0.92% | | | 1.05% | | | 1.13% | |
| | Ratio of Net Investment Income/(Loss) | | 0.78% | | | 1.11% | | | 1.38% | | | 0.60% | | | 0.55% | |
| Portfolio Turnover Rate | | 53% | | | 59% | | | 39% | | | 51% | | | 83% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | JUNE 30, 2021 |
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Small Cap Value Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks capital appreciation. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds. Effective July 6, 2020, Class D Shares are open to new investors, subject to the Fund’s closed fund policies.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class L Shares are designed for pension and profit-sharing plans, employee benefit trusts, endowments, foundations and corporations, as well as high net worth individuals and financial intermediaries who are willing to maintain a minimum account balance of $250,000.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with US GAAP.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States.
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
ING Financial Markets LLC | $ | 25,700,000 | $ | — | $ | (25,700,000) | $ | — |
Royal Bank of Canada, NY Branch | | 50,000,000 | | — | | (50,000,000) | | — |
| | | | | | | | | |
Total | $ | 75,700,000 | $ | — | $ | (75,700,000) | $ | — |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
All repurchase agreements are transacted under legally enforceable master repurchase agreements that give the Fund, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the counterparty. For financial reporting purposes, the Fund does not offset financial instruments' payables and receivables and related collateral on the Statement of Assets and Liabilities. Repurchase agreements held by the Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest.
Real Estate Investing
The Fund may invest 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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Repurchase Agreements
The Fund and other funds advised by Janus Capital or its affiliates may transfer daily uninvested cash balances into one or more joint trading accounts. Assets in the joint trading accounts are invested in money market instruments and the proceeds are allocated to the participating funds on a pro rata basis.
Repurchase agreements held by the Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee rate that may adjust up or down based on the Fund’s performance relative to its benchmark index.
The investment advisory fee rate paid to Janus Capital by the Fund consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (the “Base Fee Rate”), plus or minus (2) a performance-fee adjustment (the “Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets based on the Fund’s relative performance compared to the cumulative investment record of its benchmark index over a 36-month performance measurement period or shorter time period, as applicable. The investment advisory fee rate is calculated daily and paid monthly.
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. The Fund’s Base Fee Rate prior to any performance adjustment (expressed as an annual rate) is 0.72%, and the Fund’s benchmark index used in the calculation is the Russell 2000® Value Index.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index, up to the Fund’s full performance rate of ±5.50%. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index.
The Fund’s prospectuses and statement(s) of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statement of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment. For the year ended June 30, 2021, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.64%.
Perkins Investment Management LLC (“Perkins”) previously served as subadviser to the Fund. Effective April 30, 2021, the subadvisory agreement between Janus Capital and Perkins on behalf of the Fund was terminated.
Prior to April 30, 2021, Janus Capital paid Perkins a subadvisory fee equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (calculated after any applicable performance fee adjustment, fee waivers, and expense reimbursements). The subadvisory fee paid by Janus Capital to Perkins adjusts up or down based on the Fund’s performance relative to the Fund’s benchmark index over the performance measurement period.
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any performance adjustments to management fees, the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.91% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class R Shares, Class S Shares, and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class R Shares, Class S Shares, and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative fee based on the average daily net assets Class L Shares of the Fund based on the average proportion of the Fund’s total net assets sold directly and the average proportion of the Fund’s net assets sold through financial intermediaries on a monthly basis. The asset-weighted fee is calculated by applying a blended annual fee rate of 0.12% on average net assets for the proportion of assets sold directly and 0.25% on average net assets for the proportion of assets sold through financial intermediaries. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations. Janus Services has agreed to waive all or a portion of this fee. Such waiver is voluntary and could change or be terminated at any time at the discretion of Janus Services or Janus Capital without prior notification to shareholders. Removal of this fee waiver may have a significant impact on Class L Shares’ total expense ratio. If applicable, amounts waived to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, of up to 0.50% of the Class R Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $2,414.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class A Shares paid CDSCs of $4,190 to Janus Henderson Distributors.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $2,328.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by Janus Capital in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the year ended June 30, 2021, the Fund engaged in cross trades amounting to $889,300 in purchases and $3,089,595 in sales, resulting in a net realized gain of $617,130. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 31,292,352 | $ - | $ (69,224,055) | $ - | $ - | $ (90,516) | $977,386,548 | |
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended June 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(69,224,055) | $ - | $ (69,224,055) | | |
During the year ended June 30, 2021, capital loss carryovers of $186,155,282 were utilized by the Fund.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 3,045,435,157 | $998,452,351 | $(21,065,803) | $ 977,386,548 |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 39,121,996 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 37,554,364 | $ - | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ - | $ 494,052 | $ (494,052) |
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 841,439 | $ 17,947,735 | | 2,164,486 | $ 42,685,985 |
Reinvested dividends and distributions | 12,261 | 256,501 | | 8,855 | 204,816 |
Shares repurchased | (1,711,882) | (36,915,992) | | (1,386,334) | (27,628,464) |
Net Increase/(Decrease) | (858,182) | $ (18,711,756) | | 787,007 | $ 15,262,337 |
Class C Shares: | | | | | |
Shares sold | 104,790 | $ 2,058,655 | | 412,544 | $ 8,189,862 |
Reinvested dividends and distributions | 2,034 | 39,809 | | - | - |
Shares repurchased | (400,640) | (7,782,125) | | (607,665) | (11,025,763) |
Net Increase/(Decrease) | (293,816) | $ (5,683,661) | | (195,121) | $ (2,835,901) |
Class D Shares: | | | | | |
Shares sold | 494,729 | $ 11,355,208 | | 439,764 | $ 8,740,206 |
Reinvested dividends and distributions | 45,346 | 939,110 | | 49,638 | 1,136,224 |
Shares repurchased | (1,164,499) | (23,470,792) | | (968,386) | (18,766,373) |
Net Increase/(Decrease) | (624,424) | $ (11,176,474) | | (478,984) | $ (8,889,943) |
Class I Shares: | | | | | |
Shares sold | 28,795,860 | $ 607,524,654 | | 42,884,428 | $850,390,290 |
Reinvested dividends and distributions | 930,947 | 19,363,696 | | 781,260 | 17,961,173 |
Shares repurchased | (34,811,441) | (747,393,469) | | (24,487,893) | (463,458,576) |
Net Increase/(Decrease) | (5,084,634) | $(120,505,119) | | 19,177,795 | $404,892,887 |
Class L Shares: | | | | | |
Shares sold | 186,268 | $ 4,317,025 | | 210,452 | $ 4,350,291 |
Reinvested dividends and distributions | 49,634 | 1,063,163 | | 66,862 | 1,582,627 |
Shares repurchased | (964,189) | (20,385,451) | | (1,551,906) | (29,806,034) |
Net Increase/(Decrease) | (728,287) | $ (15,005,263) | | (1,274,592) | $ (23,873,116) |
Class N Shares: | | | | | |
Shares sold | 15,982,981 | $ 331,650,525 | | 19,100,455 | $375,815,432 |
Reinvested dividends and distributions | 424,420 | 8,806,725 | | 343,412 | 7,877,874 |
Shares repurchased | (17,945,108) | (383,569,565) | | (8,021,117) | (154,532,502) |
Net Increase/(Decrease) | (1,537,707) | $ (43,112,315) | | 11,422,750 | $229,160,804 |
Class R Shares: | | | | | |
Shares sold | 419,175 | $ 8,571,509 | | 576,098 | $ 11,157,082 |
Reinvested dividends and distributions | 12,304 | 249,155 | | 3,737 | 83,742 |
Shares repurchased | (384,583) | (8,052,800) | | (401,066) | (7,687,180) |
Net Increase/(Decrease) | 46,896 | $ 767,864 | | 178,769 | $ 3,553,644 |
Class S Shares: | | | | | |
Shares sold | 508,347 | $ 10,263,991 | | 1,139,337 | $ 23,019,689 |
Reinvested dividends and distributions | 17,425 | 358,961 | | 16,741 | 381,178 |
Shares repurchased | (1,300,490) | (27,667,147) | | (1,236,359) | (23,084,056) |
Net Increase/(Decrease) | (774,718) | $ (17,044,195) | | (80,281) | $ 316,811 |
Class T Shares: | | | | | |
Shares sold | 5,764,980 | $ 118,686,803 | | 10,020,891 | $205,029,493 |
Reinvested dividends and distributions | 248,702 | 5,165,550 | | 252,423 | 5,795,634 |
Shares repurchased | (12,398,768) | (259,351,788) | | (11,157,977) | (213,738,440) |
Net Increase/(Decrease) | (6,385,086) | $(135,499,435) | | (884,663) | $ (2,913,313) |
Janus Henderson Small Cap Value Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$1,853,180,322 | $2,185,269,699 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund's financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Small Cap Value Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Small Cap Value Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Small Cap Value Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the “Fund”) as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Small Cap Value Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Small Cap Value Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Small Cap Value Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Small Cap Value Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Small Cap Value Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 100% |
Janus Henderson Small Cap Value Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Small Cap Value Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Small Cap Value Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Small Cap Value Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Small Cap Value Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Small Cap Value Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Small Cap Value Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
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Janus Henderson Small Cap Value Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Small Cap Value Fund
Notes
NotesPage1
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93034 08-21 |
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| | | ANNUAL REPORT June 30, 2021 |
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| | Janus Henderson Small-Mid Cap Value Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Small-Mid Cap Value Fund
Janus Henderson Small-Mid Cap Value Fund (unaudited)
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FUND SNAPSHOT The Janus Henderson Small-Mid Cap Value Fund is a moderately positioned, small-mid-cap growth fund seeking to provide consistent relative returns with lower volatility than the index. The Fund invests in small-cap companies with differentiated business models and sustainable competitive advantages that are positioned to grow market share regardless of economic conditions. During the period, the Fund's investment strategy shifted from an all-cap approach to one that aims to identify undervalued small- and mid-cap opportunities. | | | | 
Justin Tugman co-portfolio manager | 
Kevin Preloger co-portfolio manager |
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PERFORMANCE
For the 12-month period ended June 30, 2021, the Janus Henderson Small-Mid Cap Value Fund Class I shares returned 38.58%, underperforming its primary benchmark, the Russell 2500® Value Index, which returned 63.23%. The Fund also underperformed its secondary benchmark, the Russell 3000® Index, which returned 45.4%.
INVESTMENT EVIRONMENT
Stocks delivered positive returns over the period, with gains primarily driven by positive COVID-19 vaccine developments, the U.S. presidential election results, the continuation of unprecedented monetary and fiscal stimulus and, in 2021, healthy economic and earnings growth following the easing of COVID-19 restrictions. For much of the period, high-beta stocks (those with greater volatility compared with the overall market) and non-earners drove the index, and growth stocks outperformed value stocks across all market-cap segments. Cyclical sectors outperformed, led by energy, communication services, consumer discretionary and materials.
In the second half of the period, rising interest rates and higher inflation expectations – as evidenced by the 10-year Treasury yield doubling and the yield curve steepening – led to a sharp outperformance of value relative to growth. Yields subsequently retreated, however, as commodity prices moderated and the Federal Reserve (Fed) signaled it may taper some of its policy support. More speculative, short interest covering behavior dominated the market toward period end.
PERFORMANCE DISCUSSION
Stock selection was the main driver of the Fund’s relative underperformance during the period, particularly in industrials, materials, consumer discretionary and financials. Within industrials, defense contractor BWX Technologies weighed on returns, as the company faced concerns over potential cuts to the Department of Defense budget. These concerns were overdone in our view: The Biden administration's initial budget request included higher defense spending on a year-over-year basis. Because we believed negative sentiment toward defense stocks was out of line with fundamentals, toward period end we took advantage of reduced valuations to add to several defense-oriented names. KAR Auction Services, a direct-to-consumer used car dealership, also detracted. The company suffered during the COVID-induced recession and its stock price declined. We added to our position during the period on the expectation that the company could stand to benefit as the post-pandemic economic recovery picks up.
In materials, while the Fund’s stock selection was detrimental to relative performance, our overweight allocation was additive given the sector produced one of the highest returns in the index. Health care was the Fund’s top sector contributor over the period, due both to stock selection as well as an underweight allocation relative to the benchmark. Omnicell Inc., a provider of fully automated, digital, medication and supply management delivery infrastructure to health care professionals and facilities, was the largest contributor at the individual stock level. Another stock aiding relative performance was longtime holding Levi Strauss & Co. The apparel company benefited from improved employment and income growth over the period, as well as from the renewed popularity of denim and its marketing partnership with Target.
OUTLOOK
While it is frustrating to see a rational market driven by fundamentals devolve into a renewed period of irrationality, it has not shaken our commitment to our disciplined investment strategy. Quality matters over the
Janus Henderson Small-Mid Cap Value Fund (unaudited)
long term, and earnings, free cash flow and balance sheet strength – not social media campaigns – ultimately determine a company’s value. We’d also point out that periods of irrationality can end just as quickly as they begin. While we don’t believe in trying to predict the timing of market shifts, we see several factors that may contribute to a renewed focus on fundamentals. For one thing, we believe inflation may prove more persistent than people realize, especially if companies have to pay more to attract and retain workers. Historically, periods of higher inflation have rewarded value over growth. The resulting upward pressure on interest rates would also benefit more interest-rate driven investments such as banks, which are heavily weighted in the value indices. We also caution that as we head into 2022, economic and earnings growth may look less rosy when compared to the artificially supported levels of early 2021, and this could also temper investor euphoria. Above all, we remain committed to using periods of volatility to our advantage, investing in high-quality small- and mid-cap companies that may be undervalued by the market.
Thank you for your continued co-investment in the Janus Henderson Small-Mid Cap Value Fund.
Janus Henderson Small-Mid Cap Value Fund (unaudited)
Fund At A Glance
June 30, 2021
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Omnicell Inc | 0.67% | | 0.68% | | BWX Technologies Inc | 2.28% | | -1.52% |
| Levi Strauss & Co | 1.51% | | 0.61% | | KAR Auction Services Inc | 0.70% | | -1.17% |
| Mercury Systems Inc | 0.35% | | 0.44% | | Washington Federal Inc | 2.12% | | -1.15% |
| First Horizon National Corp | 2.67% | | 0.42% | | Americold Realty Trust | 2.11% | | -1.12% |
| Eagle Materials Inc | 1.01% | | 0.37% | | Equity Commonwealth | 1.19% | | -1.08% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2500 Value Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | 2.38% | | 2.30% | 6.56% |
| Utilities | | -0.46% | | 3.97% | 4.03% |
| Communication Services | | -0.82% | | 0.00% | 3.30% |
| Consumer Staples | | -1.18% | | 6.40% | 3.45% |
| Energy | | -1.35% | | 0.63% | 3.78% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2500 Value Index |
| | | Contribution | | Average Weight | Average Weight |
| Industrials | | -4.59% | | 21.22% | 17.70% |
| Consumer Discretionary | | -3.70% | | 9.53% | 13.50% |
| Materials | | -3.45% | | 11.57% | 6.97% |
| Financials | | -2.40% | | 20.05% | 20.71% |
| Other** | | -2.25% | | 3.57% | 0.00% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
** | Not a GICS classified sector. |
Janus Henderson Small-Mid Cap Value Fund (unaudited)
Fund At A Glance
June 30, 2021
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5 Largest Equity Holdings - (% of Net Assets) |
Nomad Foods Ltd | |
Food Products | 3.2% |
First Horizon National Corp | |
Banks | 2.9% |
Equity LifeStyle Properties Inc | |
Equity Real Estate Investment Trusts (REITs) | 2.7% |
Henry Schein Inc | |
Health Care Providers & Services | 2.6% |
Casey's General Stores Inc | |
Food & Staples Retailing | 2.6% |
| | 14.0% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.1% | |
Repurchase Agreements | | 1.2% | |
Other | | 1.7% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of June 30, 2021 
| As of June 30, 2020 
|
Janus Henderson Small-Mid Cap Value Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 38.27% | 10.33% | 10.59% | | | 1.78% | 1.33% |
Class A Shares at MOP | | 30.33% | 9.04% | 9.91% | | | | |
Class C Shares at NAV | | 37.24% | 9.45% | 9.73% | | | 3.23% | 2.13% |
Class C Shares at CDSC | | 36.24% | 9.45% | 9.73% | | | | |
Class D Shares | | 38.52% | 10.53% | 10.82% | | | 1.51% | 1.17% |
Class I Shares | | 38.58% | 10.58% | 10.90% | | | 1.47% | 1.13% |
Class N Shares | | 38.72% | 10.65% | 10.82% | | | 1.48% | 1.03% |
Class S Shares | | 38.16% | 10.26% | 10.50% | | | 2.17% | 1.52% |
Class T Shares | | 38.50% | 10.41% | 10.72% | | | 1.55% | 1.27% |
Russell 2500 Value Index | | 63.23% | 12.29% | 13.07% | | | | |
Russell 3000 Value Index | | 45.40% | 11.99% | 13.27% | | | | |
Morningstar Quartile - Class I Shares | | 4th | 3rd | 4th | | | | |
Morningstar Ranking - based on total returns for Mid-Cap Blend Funds | | 391/417 | 265/387 | 299/341 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on October 28, 2020.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Janus Henderson Small-Mid Cap Value Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class N Shares commenced operations on August 4, 2017. Performance shown for periods prior to August 4, 2017 reflects the historical performance of the Fund’s Class I Shares, calculated using the fees and expenses of Class N Shares, without the effect of any fee and expense limitations or waivers.
If Class N Shares of the Fund had been available during periods prior August 4, 2017, the performance shown may have been different. The performance shown for periods following the Fund’s commencement Class N Shares reflects the fees and expenses of Class N Shares, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – December 15, 2011
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Small-Mid Cap Value Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $1,130.20 | $5.33 | | $1,000.00 | $1,019.79 | $5.06 | 1.01% |
Class C Shares | $1,000.00 | $1,125.50 | $9.38 | | $1,000.00 | $1,015.97 | $8.90 | 1.78% |
Class D Shares | $1,000.00 | $1,130.90 | $4.60 | | $1,000.00 | $1,020.48 | $4.36 | 0.87% |
Class I Shares | $1,000.00 | $1,131.30 | $4.54 | | $1,000.00 | $1,020.53 | $4.31 | 0.86% |
Class N Shares | $1,000.00 | $1,131.70 | $3.96 | | $1,000.00 | $1,021.08 | $3.76 | 0.75% |
Class S Shares | $1,000.00 | $1,129.80 | $6.34 | | $1,000.00 | $1,018.84 | $6.01 | 1.20% |
Class T Shares | $1,000.00 | $1,130.10 | $5.23 | | $1,000.00 | $1,019.89 | $4.96 | 0.99% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Small-Mid Cap Value Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.1% | | | |
Aerospace & Defense – 4.4% | | | |
| | BWX Technologies Inc | | 57,425 | | | $3,337,541 | |
| | Mercury Systems Inc* | | 65,921 | | | 4,369,244 | |
| | | 7,706,785 | |
Auto Components – 2.2% | | | |
| | Stoneridge Inc* | | 129,004 | | | 3,805,618 | |
Banks – 10.2% | | | |
| | Ameris Bancorp | | 85,409 | | | 4,324,258 | |
| | Atlantic Union Bankshares Corp | | 115,564 | | | 4,185,728 | |
| | First Horizon National Corp | | 297,984 | | | 5,149,163 | |
| | Great Western Bancorp Inc | | 128,239 | | | 4,204,957 | |
| | | 17,864,106 | |
Building Products – 2.1% | | | |
| | American Woodmark Corp* | | 45,605 | | | 3,725,472 | |
Chemicals – 3.8% | | | |
| | FMC Corp | | 31,777 | | | 3,438,271 | |
| | Innospec Inc | | 35,188 | | | 3,188,385 | |
| | | 6,626,656 | |
Commercial Services & Supplies – 2.3% | | | |
| | IAA Inc* | | 73,225 | | | 3,993,691 | |
Communications Equipment – 1.9% | | | |
| | F5 Networks Inc* | | 17,527 | | | 3,271,590 | |
Construction & Engineering – 1.4% | | | |
| | EMCOR Group Inc | | 20,599 | | | 2,537,591 | |
Construction Materials – 1.6% | | | |
| | Eagle Materials Inc | | 20,073 | | | 2,852,574 | |
Containers & Packaging – 2.2% | | | |
| | Graphic Packaging Holding Co | | 217,227 | | | 3,940,498 | |
Electrical Equipment – 3.6% | | | |
| | GrafTech International Ltd | | 338,249 | | | 3,930,453 | |
| | Thermon Group Holdings Inc* | | 142,965 | | | 2,436,124 | |
| | | 6,366,577 | |
Electronic Equipment, Instruments & Components – 2.1% | | | |
| | Vontier Corp | | 115,158 | | | 3,751,848 | |
Equity Real Estate Investment Trusts (REITs) – 9.7% | | | |
| | Americold Realty Trust | | 95,572 | | | 3,617,400 | |
| | Equity Commonwealth | | 77,713 | | | 2,036,081 | |
| | Equity LifeStyle Properties Inc | | 63,969 | | | 4,753,536 | |
| | Lamar Advertising Co | | 22,374 | | | 2,336,293 | |
| | Sunstone Hotel Investors Inc* | | 347,082 | | | 4,310,758 | |
| | | 17,054,068 | |
Food & Staples Retailing – 2.6% | | | |
| | Casey's General Stores Inc | | 23,291 | | | 4,533,360 | |
Food Products – 3.2% | | | |
| | Nomad Foods Ltd* | | 198,145 | | | 5,601,559 | |
Health Care Equipment & Supplies – 1.9% | | | |
| | Haemonetics Corp* | | 7,094 | | | 472,744 | |
| | Quidel Corp* | | 21,908 | | | 2,806,853 | |
| | | 3,279,597 | |
Health Care Providers & Services – 3.2% | | | |
| | Cardinal Health Inc | | 18,351 | | | 1,047,659 | |
| | Henry Schein Inc* | | 61,166 | | | 4,537,906 | |
| | | 5,585,565 | |
Hotels, Restaurants & Leisure – 2.0% | | | |
| | Cracker Barrel Old Country Store Inc | | 24,088 | | | 3,576,104 | |
Household Durables – 1.8% | | | |
| | Leggett & Platt Inc | | 59,766 | | | 3,096,476 | |
Industrial Conglomerates – 2.0% | | | |
| | Carlisle Cos Inc | | 18,539 | | | 3,547,994 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson Small-Mid Cap Value Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Information Technology Services – 1.7% | | | |
| | WNS Holdings Ltd (ADR)* | | 37,350 | | | $2,983,144 | |
Insurance – 4.0% | | | |
| | Hanover Insurance Group Inc | | 20,455 | | | 2,774,516 | |
| | Hartford Financial Services Group Inc | | 67,772 | | | 4,199,831 | |
| | | 6,974,347 | |
Internet & Direct Marketing Retail – 1.8% | | | |
| | Qurate Retail Inc | | 245,501 | | | 3,213,608 | |
Machinery – 2.6% | | | |
| | Lincoln Electric Holdings Inc | | 15,132 | | | 1,993,036 | |
| | Oshkosh Corp | | 20,664 | | | 2,575,561 | |
| | | 4,568,597 | |
Metals & Mining – 2.3% | | | |
| | Commercial Metals Co | | 129,024 | | | 3,963,617 | |
Multi-Utilities – 2.2% | | | |
| | Black Hills Corp | | 59,682 | | | 3,916,930 | |
Oil, Gas & Consumable Fuels – 2.1% | | | |
| | Marathon Petroleum Corp | | 60,797 | | | 3,673,355 | |
Semiconductor & Semiconductor Equipment – 4.7% | | | |
| | CMC Materials Inc | | 27,997 | | | 4,220,268 | |
| | Maxim Integrated Products Inc | | 38,477 | | | 4,053,937 | |
| | | 8,274,205 | |
Software – 1.8% | | | |
| | CDK Global Inc | | 62,336 | | | 3,097,476 | |
Textiles, Apparel & Luxury Goods – 3.4% | | | |
| | Carter's Inc | | 35,239 | | | 3,635,608 | |
| | Columbia Sportswear Co | | 24,381 | | | 2,398,115 | |
| | | 6,033,723 | |
Thrifts & Mortgage Finance – 2.4% | | | |
| | WSFS Financial Corp | | 88,923 | | | 4,142,923 | |
Trading Companies & Distributors – 3.9% | | | |
| | H&E Equipment Services Inc | | 95,540 | | | 3,178,616 | |
| | MSC Industrial Direct Co Inc | | 42,018 | | | 3,770,275 | |
| | | 6,948,891 | |
Total Common Stocks (cost $155,593,550) | | 170,508,545 | |
Repurchase Agreements– 1.2% | | | |
| | ING Financial Markets LLC, Joint repurchase agreement, 0.0300%, dated 6/30/21, maturing 7/1/21 to be repurchased at $2,200,002 collateralized by $1,988,154 in U.S. Treasuries 0% - 4.2500%, 11/12/21 - 2/15/51 with a value of $2,244,006((cost $2,200,000) | | $2,200,000 | | | 2,200,000 | |
Total Investments (total cost $157,793,550) – 98.3% | | 172,708,545 | |
Cash, Receivables and Other Assets, net of Liabilities – 1.7% | | 2,977,922 | |
Net Assets – 100% | | $175,686,467 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $164,123,842 | | 95.0 | % |
United Kingdom | | 5,601,559 | | 3.3 | |
India | | 2,983,144 | | 1.7 | |
| | | | | | |
| | | | | | |
Total | | $172,708,545 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Small-Mid Cap Value Fund
Notes to Schedule of Investments and Other Information
| | |
Russell 2500® Value Index | Russell 2500® Value Index reflects the performance of U.S. small to mid-cap equities with lower price-to-book ratios and lower forecasted growth values. |
Russell 3000® Value Index | Russell 3000® Value Index reflects the performance of U.S. equities with lower price-to-book ratios and lower forecasted growth values. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
| | |
* | Non-income producing security. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | $ | 170,508,545 | $ | - | $ | - |
Repurchase Agreements | | - | | 2,200,000 | | - |
Total Assets | $ | 170,508,545 | $ | 2,200,000 | $ | - |
| | | | | | | |
Janus Henderson Small-Mid Cap Value Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Investments, at value (cost $155,593,550) | | $ | 170,508,545 | |
| Repurchase agreements, at value (cost $2,200,000) | | | 2,200,000 | |
| Cash | | | 35,771 | |
| Non-interested Trustees' deferred compensation | | | 4,224 | |
| Receivables: | | | | |
| | Fund shares sold | | | 2,596,677 | |
| | Investments sold | | | 688,679 | |
| | Dividends | | | 232,194 | |
| Other assets | | | 269 | |
Total Assets | | | 176,266,359 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 382,559 | |
| | Advisory fees | | | 94,347 | |
| | Professional fees | | | 47,899 | |
| | Non-affiliated fund administration fees payable | | | 21,511 | |
| | Transfer agent fees and expenses | | | 16,042 | |
| | Non-interested Trustees' deferred compensation fees | | | 4,224 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 1,380 | |
| | Custodian fees | | | 581 | |
| | Affiliated fund administration fees payable | | | 380 | |
| | Non-interested Trustees' fees and expenses | | | 351 | |
| | Accrued expenses and other payables | | | 10,618 | |
Total Liabilities | | | 579,892 | |
Net Assets | | $ | 175,686,467 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Small-Mid Cap Value Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 161,525,933 | |
| Total distributable earnings (loss) | | | 14,160,534 | |
Total Net Assets | | $ | 175,686,467 | |
Net Assets - Class A Shares | | $ | 3,278,530 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 234,457 | |
Net Asset Value Per Share(1) | | $ | 13.98 | |
Maximum Offering Price Per Share(2) | | $ | 14.83 | |
Net Assets - Class C Shares | | $ | 514,662 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 38,253 | |
Net Asset Value Per Share(1) | | $ | 13.45 | |
Net Assets - Class D Shares | | $ | 66,854,223 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,746,808 | |
Net Asset Value Per Share | | $ | 14.08 | |
Net Assets - Class I Shares | | $ | 14,658,960 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,031,117 | |
Net Asset Value Per Share | | $ | 14.22 | |
Net Assets - Class N Shares | | $ | 70,581,493 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,008,268 | |
Net Asset Value Per Share | | $ | 14.09 | |
Net Assets - Class S Shares | | $ | 1,135,516 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 82,065 | |
Net Asset Value Per Share | | $ | 13.84 | |
Net Assets - Class T Shares | | $ | 18,663,083 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,326,131 | |
Net Asset Value Per Share | | $ | 14.07 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson Small-Mid Cap Value Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 1,535,280 | |
| Interest | | 915 | |
Total Investment Income | | 1,536,195 | |
Expenses: | | | |
| Advisory fees | | 587,402 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 7,584 | |
| | Class C Shares | | 3,929 | |
| | Class S Shares | | 2,485 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 39,538 | |
| | Class S Shares | | 2,710 | |
| | Class T Shares | | 27,531 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 1,390 | |
| | Class C Shares | | 497 | |
| | Class I Shares | | 16,806 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 225 | |
| | Class C Shares | | 41 | |
| | Class D Shares | | 6,778 | |
| | Class I Shares | | 725 | |
| | Class N Shares | | 900 | |
| | Class S Shares | | 31 | |
| | Class T Shares | | 166 | |
| Registration fees | | 117,431 | |
| Non-affiliated fund administration fees | | 68,014 | |
| Professional fees | | 46,145 | |
| Shareholder reports expense | | 23,009 | |
| Custodian fees | | 4,564 | |
| Affiliated fund administration fees | | 2,853 | |
| Non-interested Trustees’ fees and expenses | | 1,509 | |
| Other expenses | | 6,016 | |
Total Expenses | | 968,279 | |
Less: Excess Expense Reimbursement and Waivers | | (159,520) | |
Net Expenses | | 808,759 | |
Net Investment Income/(Loss) | | 727,436 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Small-Mid Cap Value Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 3,173,769 | |
Total Net Realized Gain/(Loss) on Investments | | 3,173,769 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments and non-interested Trustees’ deferred compensation | | 17,435,662 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 17,435,662 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 21,336,867 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson Small-Mid Cap Value Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 727,436 | | $ | 544,870 | |
| Net realized gain/(loss) on investments | | 3,173,769 | | | 1,313,565 | |
| Change in unrealized net appreciation/depreciation | | 17,435,662 | | | (9,079,469) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 21,336,867 | | | (7,221,034) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (16,879) | | | (237,847) | |
| | Class C Shares | | — | | | (43,400) | |
| | Class D Shares | | (180,499) | | | (2,553,239) | |
| | Class I Shares | | (119,572) | | | (646,190) | |
| | Class N Shares | | (158,071) | | | (235,713) | |
| | Class S Shares | | (4,556) | | | (147,076) | |
| | Class T Shares | | (36,885) | | | (2,319,707) | |
Net Decrease from Dividends and Distributions to Shareholders | | (516,462) | | | (6,183,172) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (630,167) | | | 1,543,155 | |
| | Class C Shares | | 29,223 | | | 49,619 | |
| | Class D Shares | | 38,275,331 | | | 3,648,992 | |
| | Class I Shares | | 270,036 | | | 3,712,450 | |
| | Class N Shares | | 63,111,878 | | | 689,841 | |
| | Class S Shares | | (207,299) | | | 987,834 | |
| | Class T Shares | | (22,390,494) | | | 19,858,493 | |
Net Increase/(Decrease) from Capital Share Transactions | | 78,458,508 | | | 30,490,384 | |
Net Increase/(Decrease) in Net Assets | | 99,278,913 | | | 17,086,178 | |
Net Assets: | | | | | | |
| Beginning of period | | 76,407,554 | | | 59,321,376 | |
| End of period | $ | 175,686,467 | | $ | 76,407,554 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Small-Mid Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.17 | | | $13.17 | | | $14.13 | | | $13.71 | | | $12.20 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.10 | | | 0.10 | | | 0.10 | | | 0.04 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 3.78 | | | (1.71) | | | 0.65 | | | 1.12 | | | 2.15 | |
| Total from Investment Operations | | 3.88 | | | (1.61) | | | 0.75 | | | 1.16 | | | 2.22 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.07) | | | (0.11) | | | (0.18) | | | —(2) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | (1.28) | | | (1.53) | | | (0.74) | | | (0.59) | |
| Total Dividends and Distributions | | (0.07) | | | (1.39) | | | (1.71) | | | (0.74) | | | (0.71) | |
| Net Asset Value, End of Period | | $13.98 | | | $10.17 | | | $13.17 | | | $14.13 | | | $13.71 | |
| Total Return* | | 38.27% | | | (14.37)% | | | 7.46% | | | 8.49% | | | 18.43% | |
| Net Assets, End of Period (in thousands) | | $3,279 | | | $3,039 | | | $2,055 | | | $521 | | | $457 | |
| Average Net Assets for the Period (in thousands) | | $3,034 | | | $2,169 | | | $852 | | | $501 | | | $351 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.35% | | | 1.78% | | | 1.91% | | | 1.55% | | | 1.21% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.07% | | | 1.34% | | | 1.31% | | | 1.31% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | 0.81% | | | 0.88% | | | 0.79% | | | 0.29% | | | 0.57% | |
| Portfolio Turnover Rate | | 99% | | | 152% | | | 40% | | | 58% | | | 49% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $9.80 | | | $12.74 | | | $13.73 | | | $13.43 | | | $12.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.02 | | | 0.01 | | | 0.02 | | | (0.06) | | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | 3.63 | | | (1.66) | | | 0.60 | | | 1.10 | | | 2.09 | |
| Total from Investment Operations | | 3.65 | | | (1.65) | | | 0.62 | | | 1.04 | | | 2.06 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.01) | | | (0.08) | | | — | | | (0.08) | |
| | Distributions (from capital gains) | | — | | | (1.28) | | | (1.53) | | | (0.74) | | | (0.59) | |
| Total Dividends and Distributions | | — | | | (1.29) | | | (1.61) | | | (0.74) | | | (0.67) | |
| Net Asset Value, End of Period | | $13.45 | | | $9.80 | | | $12.74 | | | $13.73 | | | $13.43 | |
| Total Return* | | 37.24% | | | (15.04)% | | | 6.52% | | | 7.75% | | | 17.34% | |
| Net Assets, End of Period (in thousands) | | $515 | | | $353 | | | $398 | | | $262 | | | $352 | |
| Average Net Assets for the Period (in thousands) | | $427 | | | $380 | | | $318 | | | $319 | | | $244 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.70% | | | 3.23% | | | 3.30% | | | 2.38% | | | 1.99% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.81% | | | 2.14% | | | 2.09% | | | 2.05% | | | 1.89% | |
| | Ratio of Net Investment Income/(Loss) | | 0.14% | | | 0.12% | | | 0.16% | | | (0.46)% | | | (0.23)% | |
| Portfolio Turnover Rate | | 99% | | | 152% | | | 40% | | | 58% | | | 49% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson Small-Mid Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.24 | | | $13.24 | | | $14.19 | | | $13.76 | | | $12.23 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.10 | | | 0.13 | | | 0.16 | | | 0.08 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 3.83 | | | (1.72) | | | 0.61 | | | 1.13 | | | 2.14 | |
| Total from Investment Operations | | 3.93 | | | (1.59) | | | 0.77 | | | 1.21 | | | 2.24 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.09) | | | (0.13) | | | (0.19) | | | (0.04) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | (1.28) | | | (1.53) | | | (0.74) | | | (0.59) | |
| Total Dividends and Distributions | | (0.09) | | | (1.41) | | | (1.72) | | | (0.78) | | | (0.71) | |
| Net Asset Value, End of Period | | $14.08 | | | $10.24 | | | $13.24 | | | $14.19 | | | $13.76 | |
| Total Return* | | 38.52% | | | (14.20)% | | | 7.57% | | | 8.81% | | | 18.60% | |
| Net Assets, End of Period (in thousands) | | $66,854 | | | $21,708 | | | $23,948 | | | $22,006 | | | $25,384 | |
| Average Net Assets for the Period (in thousands) | | $34,811 | | | $22,879 | | | $22,739 | | | $23,560 | | | $19,932 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.06% | | | 1.51% | | | 1.45% | | | 1.19% | | | 1.02% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.89% | | | 1.17% | | | 1.10% | | | 1.07% | | | 0.89% | |
| | Ratio of Net Investment Income/(Loss) | | 0.78% | | | 1.06% | | | 1.22% | | | 0.53% | | | 0.78% | |
| Portfolio Turnover Rate | | 99% | | | 152% | | | 40% | | | 58% | | | 49% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.34 | | | $13.36 | | | $14.21 | | | $13.78 | | | $12.24 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.13 | | | 0.11 | | | 0.16 | | | 0.10 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 3.84 | | | (1.72) | | | 0.63 | | | 1.11 | | | 2.13 | |
| Total from Investment Operations | | 3.97 | | | (1.61) | | | 0.79 | | | 1.21 | | | 2.25 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.09) | | | (0.13) | | | (0.11) | | | (0.04) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | (1.28) | | | (1.53) | | | (0.74) | | | (0.59) | |
| Total Dividends and Distributions | | (0.09) | | | (1.41) | | | (1.64) | | | (0.78) | | | (0.71) | |
| Net Asset Value, End of Period | | $14.22 | | | $10.34 | | | $13.36 | | | $14.21 | | | $13.78 | |
| Total Return* | | 38.58% | | | (14.19)% | | | 7.66% | | | 8.84% | | | 18.66% | |
| Net Assets, End of Period (in thousands) | | $14,659 | | | $9,848 | | | $7,535 | | | $5,391 | | | $74,413 | |
| Average Net Assets for the Period (in thousands) | | $13,258 | | | $6,734 | | | $6,250 | | | $60,942 | | | $70,351 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.10% | | | 1.47% | | | 1.39% | | | 1.08% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.89% | | | 1.13% | | | 1.06% | | | 0.99% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | 1.02% | | | 0.93% | | | 1.20% | | | 0.69% | | | 0.88% | |
| Portfolio Turnover Rate | | 99% | | | 152% | | | 40% | | | 58% | | | 49% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Small-Mid Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | |
For a share outstanding during the year or period ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018(1) | |
| Net Asset Value, Beginning of Period | | $10.24 | | | $13.24 | | | $14.20 | | | $14.06 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.11 | | | 0.15 | | | 0.19 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 3.84 | | | (1.72) | | | 0.59 | | | 0.85 | |
| Total from Investment Operations | | 3.95 | | | (1.57) | | | 0.78 | | | 0.95 | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.10) | | | (0.15) | | | (0.21) | | | (0.07) | |
| | Distributions (from capital gains) | | — | | | (1.28) | | | (1.53) | | | (0.74) | |
| Total Dividends and Distributions | | (0.10) | | | (1.43) | | | (1.74) | | | (0.81) | |
| Net Asset Value, End of Period | | $14.09 | | | $10.24 | | | $13.24 | | | $14.20 | |
| Total Return* | | 38.72% | | | (14.09)% | | | 7.73% | | | 6.77% | |
| Net Assets, End of Period (in thousands) | | $70,581 | | | $1,806 | | | $1,852 | | | $1,585 | |
| Average Net Assets for the Period (in thousands) | | $28,417 | | | $2,112 | | | $1,782 | | | $1,164 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.88% | | | 1.48% | | | 1.41% | | | 1.12% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 1.03% | | | 0.96% | | | 0.95% | |
| | Ratio of Net Investment Income/(Loss) | | 0.83% | | | 1.24% | | | 1.40% | | | 0.76% | |
| Portfolio Turnover Rate | | 99% | | | 152% | | | 40% | | | 58% | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.06 | | | $13.07 | | | $14.12 | | | $13.71 | | | $12.21 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.08 | | | 0.08 | | | 0.09 | | | 0.04 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 3.75 | | | (1.69) | | | 0.65 | | | 1.12 | | | 2.12 | |
| Total from Investment Operations | | 3.83 | | | (1.61) | | | 0.74 | | | 1.16 | | | 2.20 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | (0.12) | | | (0.26) | | | (0.01) | | | (0.11) | |
| | Distributions (from capital gains) | | — | | | (1.28) | | | (1.53) | | | (0.74) | | | (0.59) | |
| Total Dividends and Distributions | | (0.05) | | | (1.40) | | | (1.79) | | | (0.75) | | | (0.70) | |
| Net Asset Value, End of Period | | $13.84 | | | $10.06 | | | $13.07 | | | $14.12 | | | $13.71 | |
| Total Return* | | 38.16% | | | (14.51)% | | | 7.51% | | | 8.47% | | | 18.30% | |
| Net Assets, End of Period (in thousands) | | $1,136 | | | $1,004 | | | $390 | | | $100 | | | $82 | |
| Average Net Assets for the Period (in thousands) | | $1,084 | | | $890 | | | $115 | | | $114 | | | $74 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.71% | | | 2.16% | | | 4.23% | | | 2.17% | | | 1.34% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.23% | | | 1.51% | | | 1.29% | | | 1.34% | | | 1.12% | |
| | Ratio of Net Investment Income/(Loss) | | 0.68% | | | 0.71% | | | 0.70% | | | 0.27% | | | 0.60% | |
| Portfolio Turnover Rate | | 99% | | | 152% | | | 40% | | | 58% | | | 49% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 4, 2017 (inception date) through June 30, 2018. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson Small-Mid Cap Value Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $10.21 | | | $13.22 | | | $14.16 | | | $13.76 | | | $12.24 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.06 | | | 0.14 | | | 0.15 | | | 0.06 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | 3.86 | | | (1.76) | | | 0.61 | | | 1.13 | | | 2.14 | |
| Total from Investment Operations | | 3.92 | | | (1.62) | | | 0.76 | | | 1.19 | | | 2.23 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.11) | | | (0.17) | | | (0.05) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | (1.28) | | | (1.53) | | | (0.74) | | | (0.59) | |
| Total Dividends and Distributions | | (0.06) | | | (1.39) | | | (1.70) | | | (0.79) | | | (0.71) | |
| Net Asset Value, End of Period | | $14.07 | | | $10.21 | | | $13.22 | | | $14.16 | | | $13.76 | |
| Total Return* | | 38.50% | | | (14.40)% | | | 7.51% | | | 8.65% | | | 18.48% | |
| Net Assets, End of Period (in thousands) | | $18,663 | | | $38,649 | | | $23,144 | | | $30,287 | | | $10,437 | |
| Average Net Assets for the Period (in thousands) | | $11,012 | | | $17,402 | | | $27,284 | | | $22,955 | | | $6,057 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.18% | | | 1.55% | | | 1.51% | | | 1.29% | | | 1.10% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.02% | | | 1.27% | | | 1.20% | | | 1.19% | | | 1.00% | |
| | Ratio of Net Investment Income/(Loss) | | 0.49% | | | 1.08% | | | 1.14% | | | 0.43% | | | 0.66% | |
| Portfolio Turnover Rate | | 99% | | | 152% | | | 40% | | | 58% | | | 49% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Small-Mid Cap Value Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks capital appreciation. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with US GAAP.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
ING Financial Markets LLC | $ | 2,200,000 | $ | — | $ | (2,200,000) | $ | — |
| | | | | | | | | |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
All repurchase agreements are transacted under legally enforceable master repurchase agreements that give the Fund, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the counterparty. For financial reporting purposes, the Fund does not offset financial instruments' payables and receivables and related collateral on the Statement of Assets and Liabilities. Repurchase agreements held by the Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest.
Real Estate Investing
The Fund may invest 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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Repurchase Agreements
The Fund and other funds advised by Janus Capital or its affiliates may transfer daily uninvested cash balances into one or more joint trading accounts. Assets in the joint trading accounts are invested in money market instruments and the proceeds are allocated to the participating funds on a pro rata basis.
Repurchase agreements held by the Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee rate that may adjust up or down based on the Fund’s performance relative to its benchmark index.
The investment advisory fee rate paid to Janus Capital by the Fund consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (the “Base Fee Rate”), plus or minus (2) a performance-fee adjustment (the “Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets based on the Fund’s relative performance compared to the cumulative investment record of its benchmark index over a 36-month performance measurement period or shorter time period, as applicable. The investment advisory fee rate is calculated daily and paid monthly.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. The Fund’s Base Fee Rate prior to any performance adjustment (expressed as an annual rate) is 0.70%. The Fund’s primary benchmark index is the Russell 2500® Value Index. The Russell 3000® Value Index was used to calculate the Fund’s performance fee adjustment prior to August 1, 2019. For a period of 36 months beginning on August 1, 2019, the Fund’s performance fee adjustment is calculated based on a combination of the Russell 2500® Value Index and the Russell 3000® Value Index.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index, up to the Fund’s full performance rate of ±5.00%. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index.
The Fund’s prospectuses and statement(s) of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statement of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment. For the year ended June 30, 2021, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.64%.
Perkins Investment Management LLC (“Perkins”) previously served as subadviser to the Fund. Effective April 30, 2021, the subadvisory agreement between Janus Capital and Perkins on behalf of the Fund was terminated.
Prior to April 30, 2021, Janus Capital paid Perkins a subadvisory fee equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (calculated after any applicable performance fee adjustment, fee waivers, and expense
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
reimbursements). The subadvisory fee paid by Janus Capital to Perkins adjusts up or down based on the Fund's performance relative to the Fund's benchmark index over the performance measurement period.
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any performance adjustments to management fees, the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.82% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $557.
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class C Shares during the year ended June 30, 2021.
As of June 30, 2021, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 47 | | 19 | | |
Class S Shares | 8 | | -* | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by Janus Capital in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the year ended June 30, 2021, the Fund engaged in cross trades amounting to $714,261 in purchases.
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ - | $ 1,543,534 | $ - | $ - | $ - | $ (4,223) | $ 12,621,223 | |
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 160,087,322 | $14,789,758 | $ (2,168,535) | $ 12,621,223 |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 516,462 | $ - | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 818,010 | $ 5,365,162 | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ 255,907 | $ (193,636) | $ (62,271) |
Capital has been adjusted by $255,907, including $249,875 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 47,889 | $ 590,648 | | 194,357 | $ 2,067,913 |
Reinvested dividends and distributions | 1,394 | 16,879 | | 18,611 | 237,847 |
Shares repurchased | (113,732) | (1,237,694) | | (70,118) | (762,605) |
Net Increase/(Decrease) | (64,449) | $ (630,167) | | 142,850 | $ 1,543,155 |
Class C Shares: | | | | | |
Shares sold | 13,604 | $ 163,620 | | 10,599 | $ 117,659 |
Reinvested dividends and distributions | - | - | | 3,509 | 43,400 |
Shares repurchased | (11,428) | (134,397) | | (9,266) | (111,440) |
Net Increase/(Decrease) | 2,176 | $ 29,223 | | 4,842 | $ 49,619 |
Class D Shares: | | | | | |
Shares sold | 4,768,668 | $ 66,420,388 | | 979,092 | $10,764,455 |
Reinvested dividends and distributions | 14,302 | 174,203 | | 190,918 | 2,455,201 |
Shares repurchased | (2,156,726) | (28,319,260) | | (857,955) | (9,570,664) |
Net Increase/(Decrease) | 2,626,244 | $ 38,275,331 | | 312,055 | $ 3,648,992 |
Class I Shares: | | | | | |
Shares sold | 891,748 | $ 11,414,067 | | 778,807 | $ 8,346,254 |
Reinvested dividends and distributions | 9,721 | 119,572 | | 49,783 | 646,190 |
Shares repurchased | (823,105) | (11,263,603) | | (439,964) | (5,279,994) |
Net Increase/(Decrease) | 78,364 | $ 270,036 | | 388,626 | $ 3,712,450 |
Class N Shares: | | | | | |
Shares sold | 5,742,225 | $ 75,606,237 | | 141,177 | $ 1,698,365 |
Reinvested dividends and distributions | 12,978 | 158,071 | | 18,343 | 235,713 |
Shares repurchased | (923,388) | (12,652,430) | | (122,963) | (1,244,237) |
Net Increase/(Decrease) | 4,831,815 | $ 63,111,878 | | 36,557 | $ 689,841 |
Class S Shares: | | | | | |
Shares sold | 5,919 | $ 69,778 | | 109,538 | $ 1,399,700 |
Reinvested dividends and distributions | 380 | 4,556 | | 11,617 | 147,076 |
Shares repurchased | (24,044) | (281,633) | | (51,160) | (558,942) |
Net Increase/(Decrease) | (17,745) | $ (207,299) | | 69,995 | $ 987,834 |
Class T Shares: | | | | | |
Shares sold | 1,141,393 | $ 14,821,986 | | 3,751,218 | $38,790,796 |
Reinvested dividends and distributions | 3,028 | 36,885 | | 180,663 | 2,319,707 |
Shares repurchased | (3,603,506) | (37,249,365) | | (1,897,681) | (21,252,010) |
Net Increase/(Decrease) | (2,459,085) | $(22,390,494) | | 2,034,200 | $19,858,493 |
6. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$166,158,998 | $ 88,824,049 | $ - | $ - |
Janus Henderson Small-Mid Cap Value Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund's financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Small-Mid Cap Value Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Small-Mid Cap Value Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Small-Mid Cap Value Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the “Fund”) as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson Small-Mid Cap Value Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Small-Mid Cap Value Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson Small-Mid Cap Value Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson Small-Mid Cap Value Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Small-Mid Cap Value Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Capital Gain Distributions | $249,875 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 100% |
Janus Henderson Small-Mid Cap Value Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Small-Mid Cap Value Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Small-Mid Cap Value Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson Small-Mid Cap Value Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson Small-Mid Cap Value Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Small-Mid Cap Value Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson Small-Mid Cap Value Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
| | | | |
| | | | |
Janus Henderson Small-Mid Cap Value Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Small-Mid Cap Value Fund
Notes
NotesPage1
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| | | | |
This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93033 08-21 |
| | | |
| | | |
| | | ANNUAL REPORT June 30, 2021 |
| | |
| | Janus Henderson U.S. Managed Volatility Fund |
| | |
| | Janus Investment Fund |
| |
| | | |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson U.S. Managed Volatility Fund
Janus Henderson U.S. Managed Volatility Fund (unaudited)
| | | | | | |
FUND SNAPSHOT Intech’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | | | | | Sub-advised by Intech Investment Management LLC |
| | | |
PERFORMANCE OVERVIEW
For the 12-month period ended June 30, 2021, Janus Henderson U.S. Managed Volatility Fund returned 26.75% for its Class I Shares. This compares to the 43.07% return posted by the Russell 1000® Index, the Fund’s benchmark.
INVESTMENT STRATEGY
Intech’s mathematical investment process is designed to determine potentially more efficient equity weightings of the securities in the benchmark index, utilizing a specific mathematical optimization and disciplined rebalancing routine. Rather than trying to predict the future direction of stock prices, the process seeks to use the volatility and correlation characteristics of stocks to construct portfolios.
The investment process begins with the stocks in the Russell 1000 Index. Intech’s investment process aims to capture stocks’ natural volatility through a rebalancing mechanism based on estimates of relative volatility and correlation in order to outperform the benchmark index over the long term. Within specific risk constraints, the investment process will tend to balance risk reduction with diversification potential captured through periodic rebalancing. Once the target proportions are determined and the portfolio is constructed, it is then rebalanced to those target proportions and re-optimized on a periodic basis. The Janus Henderson U.S. Managed Volatility Fund focuses on seeking an excess return above the benchmark, while also reducing or managing the Fund’s standard deviation depending on the market conditions, a strategy designed to manage the absolute risk of the portfolio
PERFORMANCE REVIEW
U.S. equity markets rebounded strongly and quickly recovered the losses suffered from the drawdown amid the COVID crisis, with the Russell 1000 Index gaining over 43% over the past 12 months. The sharp rally that began in the second half of 2020 continued into 2021 despite concerns of inflation and uncertainty surrounding future stimulus efforts.
The Fund was negatively impacted by its overall defensive positioning in what was generally a risk-on environment over the past 12 months. In particular, an average overweight to lower-beta stocks and underweight to higher-beta stocks was a headwind on relative performance as higher beta stocks generally outperformed over the past 12 months.
From a sector perspective, the Fund was negatively impacted by an average overweight to the defensive utilities sector, which was the weakest-performing sector during the period, as well as an average underweight to financials. Adverse selection effects also detracted from the Fund’s relative performance during the period, especially within the health care and communication services sectors.
OUTLOOK
Because Intech does not conduct traditional economic or fundamental analysis, Intech has no view on individual stocks, sectors, economic, or market conditions.
Managing downside exposure potentially allows for returns to compound and improve risk-adjusted returns over time. Over the long term, we believe that by reducing risk when market volatility increases and behaving like a core equity fund when market volatility is low, the Fund will achieve its investment objective of producing an excess return over the benchmark with lower absolute risk. Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. As Intech’s ongoing research efforts yield modest improvements, we will continue implementing
changes that we believe are likely to improve the long-term results for our fund shareholders.
Janus Henderson U.S. Managed Volatility Fund (unaudited)
Thank you for your investment in Janus Henderson U.S. Managed Volatility Fund.
Janus Henderson U.S. Managed Volatility Fund (unaudited)
Fund At A Glance
June 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Walmart Inc | |
Food & Staples Retailing | 3.7% |
ResMed Inc | |
Health Care Equipment & Supplies | 3.6% |
AbbVie Inc | |
Biotechnology | 3.3% |
Progressive Corp | |
Insurance | 2.8% |
West Pharmaceutical Services Inc | |
Health Care Equipment & Supplies | 2.7% |
| | 16.1% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.9% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.3% | |
Investment Companies | | 0.2% | |
Other | | (0.4)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of June 30, 2021 
| As of June 30, 2020 
|
Janus Henderson U.S. Managed Volatility Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended June 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 26.48% | 11.72% | 12.26% | 8.52% | | | 0.94% |
Class A Shares at MOP | | 19.25% | 10.41% | 11.60% | 8.10% | | | |
Class C Shares at NAV | | 25.71% | 10.99% | 11.52% | 7.76% | | | 1.64% |
Class C Shares at CDSC | | 24.71% | 10.99% | 11.52% | 7.76% | | | |
Class D Shares | | 26.71% | 11.98% | 12.46% | 8.65% | | | 0.69% |
Class I Shares | | 26.75% | 12.01% | 12.57% | 8.80% | | | 0.69% |
Class N Shares | | 26.89% | 12.15% | 12.66% | 8.85% | | | 0.55% |
Class S Shares | | 26.29% | 11.61% | 12.18% | 8.37% | | | 1.05% |
Class T Shares | | 26.70% | 11.89% | 12.39% | 8.52% | | | 0.79% |
Russell 1000 Index | | 43.07% | 17.99% | 14.90% | 10.72% | | | |
Morningstar Quartile - Class I Shares | | 4th | 4th | 3rd | 4th | | | |
Morningstar Ranking - based on total returns for Large Blend Funds | | 1,368/1,407 | 1,164/1,212 | 770/1,043 | 761/916 | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Janus Henderson U.S. Managed Volatility Fund (unaudited)
Performance
Intech's focus on managed volatility may keep the Fund from achieving excess returns over its index. The strategy may underperform during certain periods of up markets, and may not achieve the desired level of protection in down markets.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of the predecessor fund into corresponding shares of the Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the historical performance of each corresponding class of the predecessor fund prior to the reorganization, calculated using the fees and expenses of the corresponding class of the predecessor fund respectively, net of any applicable fee and expense limitations or waivers.
Class T Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the historical performance of the predecessor fund’s Class I Shares, calculated using the fees and expenses of Class T Shares, without the effect of any fee and expense limitations or waivers.
Class N Shares commenced operations on October 28, 2014. Performance shown for periods prior to October 28, 2014, reflects the historical performance of the Fund’s Class I Shares, calculated using the fees and expenses of Class I Shares, net of any applicable fee and expense limitations or waivers.
Class D Shares commenced operations on December 22, 2014. Performance shown for periods prior to December 22, 2014, reflects the historical performance of the Fund’s Class I Shares, calculated using the fees and expenses of Class D Shares, without the effect of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2021 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The predecessor Fund’s inception date – December 30, 2005
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson U.S. Managed Volatility Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | | Beginning
Account
Value
(1/1/21) | Ending
Account
Value
(6/30/21) | Expenses
Paid During
Period
(1/1/21 - 6/30/21)† | Net Annualized
Expense Ratio
(1/1/21 - 6/30/21) |
Class A Shares | $1,000.00 | $1,093.40 | $4.72 | | $1,000.00 | $1,020.28 | $4.56 | 0.91% |
Class C Shares | $1,000.00 | $1,091.20 | $7.88 | | $1,000.00 | $1,017.26 | $7.60 | 1.52% |
Class D Shares | $1,000.00 | $1,095.00 | $3.48 | | $1,000.00 | $1,021.47 | $3.36 | 0.67% |
Class I Shares | $1,000.00 | $1,094.40 | $3.53 | | $1,000.00 | $1,021.42 | $3.41 | 0.68% |
Class N Shares | $1,000.00 | $1,095.80 | $2.75 | | $1,000.00 | $1,022.17 | $2.66 | 0.53% |
Class S Shares | $1,000.00 | $1,092.70 | $5.29 | | $1,000.00 | $1,019.74 | $5.11 | 1.02% |
Class T Shares | $1,000.00 | $1,095.00 | $3.95 | | $1,000.00 | $1,021.03 | $3.81 | 0.76% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson U.S. Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 99.9% | | | |
Aerospace & Defense – 1.5% | | | |
| | L3Harris Technologies Inc | | 78,464 | | | $16,959,994 | |
Biotechnology – 6.3% | | | |
| | AbbVie Inc | | 332,187 | | | 37,417,544 | |
| | Acceleron Pharma Inc* | | 51,040 | | | 6,405,010 | |
| | Biogen Inc* | | 15,334 | | | 5,309,704 | |
| | Moderna Inc* | | 97,199 | | | 22,839,821 | |
| | | 71,972,079 | |
Building Products – 0.3% | | | |
| | Trex Co Inc* | | 34,419 | | | 3,517,966 | |
Capital Markets – 3.0% | | | |
| | Charles Schwab Corp | | 140,813 | | | 10,252,594 | |
| | KKR & Co Inc | | 121,165 | | | 7,177,815 | |
| | LPL Financial Holdings Inc | | 107,493 | | | 14,509,405 | |
| | Morningstar Inc | | 9,878 | | | 2,539,732 | |
| | | 34,479,546 | |
Commercial Services & Supplies – 1.6% | | | |
| | Waste Management Inc | | 128,551 | | | 18,011,281 | |
Construction & Engineering – 0.3% | | | |
| | Valmont Industries Inc | | 12,862 | | | 3,036,075 | |
Consumer Finance – 0.1% | | | |
| | Santander Consumer USA Holdings Inc | | 32,575 | | | 1,183,124 | |
Containers & Packaging – 0.4% | | | |
| | Avery Dennison Corp | | 19,044 | | | 4,003,810 | |
Electric Utilities – 1.9% | | | |
| | FirstEnergy Corp | | 437,833 | | | 16,291,766 | |
| | Hawaiian Electric Industries Inc | | 129,754 | | | 5,485,999 | |
| | | 21,777,765 | |
Electrical Equipment – 0.5% | | | |
| | Acuity Brands Inc | | 12,642 | | | 2,364,433 | |
| | Vertiv Holdings Co | | 123,836 | | | 3,380,723 | |
| | | 5,745,156 | |
Electronic Equipment, Instruments & Components – 1.2% | | | |
| | Trimble Inc* | | 168,944 | | | 13,824,687 | |
Entertainment – 1.5% | | | |
| | Live Nation Entertainment Inc* | | 69,359 | | | 6,075,155 | |
| | Zynga Inc* | | 1,033,720 | | | 10,988,444 | |
| | | 17,063,599 | |
Equity Real Estate Investment Trusts (REITs) – 7.9% | | | |
| | American Homes 4 Rent LP | | 402,349 | | | 15,631,259 | |
| | Crown Castle International Corp | | 18,723 | | | 3,652,857 | |
| | CubeSmart | | 294,580 | | | 13,644,946 | |
| | Extra Space Storage Inc | | 36,183 | | | 5,927,499 | |
| | Life Storage Inc | | 110,213 | | | 11,831,365 | |
| | Mid-America Apartment Communities Inc | | 65,194 | | | 10,979,973 | |
| | Public Storage | | 30,554 | | | 9,187,282 | |
| | Spirit Realty Capital Inc | | 104,569 | | | 5,002,581 | |
| | Sun Communities Inc | | 34,369 | | | 5,890,847 | |
| | VICI Properties Inc | | 301,505 | | | 9,352,685 | |
| | | 91,101,294 | |
Food & Staples Retailing – 6.0% | | | |
| | Casey's General Stores Inc | | 54,265 | | | 10,562,140 | |
| | Costco Wholesale Corp | | 16,534 | | | 6,542,008 | |
| | Kroger Co | | 253,640 | | | 9,716,948 | |
| | Walmart Inc | | 298,738 | | | 42,124,045 | |
| | �� | 68,945,141 | |
Food Products – 1.8% | | | |
| | Archer-Daniels-Midland Co | | 348,521 | | | 21,120,373 | |
Gas Utilities – 0.8% | | | |
| | Atmos Energy Corp | | 91,631 | | | 8,806,655 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson U.S. Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Health Care Equipment & Supplies – 11.0% | | | |
| | DexCom Inc* | | 22,697 | | | $9,691,619 | |
| | Insulet Corp* | | 82,106 | | | 22,538,918 | |
| | Integra LifeSciences Holdings Corp* | | 72,514 | | | 4,948,355 | |
| | ResMed Inc | | 169,069 | | | 41,678,890 | |
| | STERIS PLC | | 79,709 | | | 16,443,967 | |
| | West Pharmaceutical Services Inc | | 86,520 | | | 31,069,332 | |
| | | 126,371,081 | |
Health Care Providers & Services – 6.0% | | | |
| | CVS Health Corp | | 262,885 | | | 21,935,124 | |
| | DaVita Inc* | | 98,764 | | | 11,894,148 | |
| | Guardant Health Inc* | | 112,300 | | | 13,946,537 | |
| | Molina Healthcare Inc* | | 18,270 | | | 4,623,406 | |
| | UnitedHealth Group Inc | | 40,430 | | | 16,189,789 | |
| | | 68,589,004 | |
Hotels, Restaurants & Leisure – 2.4% | | | |
| | Domino's Pizza Inc | | 58,320 | | | 27,205,697 | |
Household Durables – 1.2% | | | |
| | Garmin Ltd | | 97,689 | | | 14,129,737 | |
Information Technology Services – 5.1% | | | |
| | Akamai Technologies Inc* | | 26,275 | | | 3,063,665 | |
| | Amdocs Ltd | | 186,890 | | | 14,457,810 | |
| | EPAM Systems Inc* | | 39,201 | | | 20,030,143 | |
| | GoDaddy Inc* | | 36,697 | | | 3,191,171 | |
| | International Business Machines Corp | | 18,308 | | | 2,683,770 | |
| | Jack Henry & Associates Inc | | 70,986 | | | 11,606,921 | |
| | Switch Inc | | 27,123 | | | 572,566 | |
| | VeriSign Inc* | | 15,052 | | | 3,427,190 | |
| | | 59,033,236 | |
Insurance – 2.9% | | | |
| | Assured Guaranty Ltd | | 40,608 | | | 1,928,068 | |
| | Progressive Corp | | 323,866 | | | 31,806,880 | |
| | | 33,734,948 | |
Interactive Media & Services – 5.4% | | | |
| | IAC / InterActiveCorp* | | 114,929 | | | 17,718,604 | |
| | Match Group Inc* | | 61,028 | | | 9,840,765 | |
| | Twitter Inc* | | 450,173 | | | 30,976,404 | |
| | Vimeo Inc* | | 66,521 | | | 3,259,529 | |
| | | 61,795,302 | |
Internet & Direct Marketing Retail – 1.3% | | | |
| | Amazon.com Inc* | | 4,430 | | | 15,239,909 | |
Life Sciences Tools & Services – 2.9% | | | |
| | Bio-Rad Laboratories Inc* | | 23,356 | | | 15,048,037 | |
| | Charles River Laboratories International Inc* | | 13,091 | | | 4,842,623 | |
| | QIAGEN NV* | | 280,216 | | | 13,556,850 | |
| | | 33,447,510 | |
Machinery – 3.1% | | | |
| | Graco Inc | | 215,108 | | | 16,283,676 | |
| | Snap-on Inc | | 12,556 | | | 2,805,387 | |
| | Toro Co | | 32,816 | | | 3,605,822 | |
| | Trane Technologies PLC | | 66,752 | | | 12,291,713 | |
| | | 34,986,598 | |
Media – 1.9% | | | |
| | Discovery Inc* | | 89,716 | | | 2,599,970 | |
| | Discovery Inc - Class A*,# | | 173,073 | | | 5,309,880 | |
| | Interpublic Group of Cos Inc | | 89,473 | | | 2,906,978 | |
| | New York Times Co | | 259,727 | | | 11,311,111 | |
| | | 22,127,939 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | JUNE 30, 2021 |
Janus Henderson U.S. Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Mortgage Real Estate Investment Trusts (REITs) – 0.2% | | | |
| | New Residential Investment Corp | | 108,973 | | | $1,154,024 | |
| | Starwood Property Trust Inc | | 51,215 | | | 1,340,296 | |
| | | 2,494,320 | |
Multi-Utilities – 0.8% | | | |
| | Ameren Corp | | 17,690 | | | 1,415,908 | |
| | Dominion Energy Inc | | 110,383 | | | 8,120,877 | |
| | | 9,536,785 | |
Personal Products – 0.1% | | | |
| | Coty Inc* | | 156,444 | | | 1,461,187 | |
Professional Services – 0.7% | | | |
| | IHS Markit Ltd | | 76,179 | | | 8,582,326 | |
Road & Rail – 1.9% | | | |
| | JB Hunt Transport Services Inc | | 84,623 | | | 13,789,318 | |
| | Old Dominion Freight Line Inc | | 29,682 | | | 7,533,292 | |
| | | 21,322,610 | |
Semiconductor & Semiconductor Equipment – 2.3% | | | |
| | Broadcom Inc | | 47,883 | | | 22,832,530 | |
| | Qorvo Inc* | | 20,472 | | | 4,005,347 | |
| | | 26,837,877 | |
Software – 4.6% | | | |
| | Citrix Systems Inc | | 162,458 | | | 19,051,450 | |
| | Microsoft Corp | | 114,351 | | | 30,977,686 | |
| | Oracle Corp | | 39,977 | | | 3,111,810 | |
| | | 53,140,946 | |
Specialty Retail – 0.5% | | | |
| | AutoZone Inc* | | 2,025 | | | 3,021,745 | |
| | O'Reilly Automotive Inc* | | 5,339 | | | 3,022,995 | |
| | | 6,044,740 | |
Technology Hardware, Storage & Peripherals – 4.9% | | | |
| | Apple Inc | | 211,077 | | | 28,909,106 | |
| | HP Inc | | 758,457 | | | 22,897,817 | |
| | Western Digital Corp* | | 58,330 | | | 4,151,346 | |
| | | 55,958,269 | |
Textiles, Apparel & Luxury Goods – 0.4% | | | |
| | NIKE Inc | | 28,176 | | | 4,352,910 | |
Tobacco – 0.4% | | | |
| | Philip Morris International Inc | | 40,720 | | | 4,035,759 | |
Trading Companies & Distributors – 2.4% | | | |
| | Fastenal Co | | 521,275 | | | 27,106,300 | |
Wireless Telecommunication Services – 2.4% | | | |
| | T-Mobile US Inc* | | 186,217 | | | 26,969,808 | |
Total Common Stocks (cost $1,067,042,800) | | 1,146,053,343 | |
Investment Companies– 0.2% | | | |
Money Markets – 0.2% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº,£((cost $2,040,175) | | 2,039,971 | | | 2,040,175 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.3% | | | |
Investment Companies – 0.3% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 3,214,787 | | | 3,214,787 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 0.0500%, 7/1/21 | | $803,697 | | | 803,697 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $4,018,484) | | 4,018,484 | |
Total Investments (total cost $1,073,101,459) – 100.4% | | 1,152,112,002 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.4)% | | (4,865,134) | |
Net Assets – 100% | | $1,147,246,868 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson U.S. Managed Volatility Fund
Schedule of Investments
June 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $1,138,555,152 | | 98.8 | % |
Germany | | 13,556,850 | | 1.2 | |
| | | | | | |
| | | | | | |
Total | | $1,152,112,002 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 6/30/21 |
Investment Companies - 0.2% |
Money Markets - 0.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | $ | 6,948 | $ | (500) | $ | - | $ | 2,040,175 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 7,679∆ | | - | | - | | 3,214,787 |
Total Affiliated Investments - 0.5% | $ | 14,627 | $ | (500) | $ | - | $ | 5,254,962 |
| | | | | | | | | | | |
| | Value at 6/30/20 | Purchases | Sales Proceeds | Value at 6/30/21 |
Investment Companies - 0.2% |
Money Markets - 0.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0636%ºº | | 6,846,161 | | 190,623,748 | | (195,429,234) | | 2,040,175 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 119,616 | | 40,682,298 | | (37,587,127) | | 3,214,787 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | JUNE 30, 2021 |
Janus Henderson U.S. Managed Volatility Fund
Notes to Schedule of Investments and Other Information
| | |
Russell 1000® Index | Russell 1000® Index reflects the performance of U.S. large-cap equities. |
| | |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of June 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at June 30, 2021. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of June 30, 2021. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | $ | 1,146,053,343 | $ | - | $ | - |
Investment Companies | | - | | 2,040,175 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 4,018,484 | | - |
Total Assets | $ | 1,146,053,343 | $ | 6,058,659 | $ | - |
| | | | | | | |
Janus Henderson U.S. Managed Volatility Fund
Statement of Assets and Liabilities
June 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $1,067,846,497)(1) | | $ | 1,146,857,040 | |
| Affiliated investments, at value (cost $5,254,962) | | | 5,254,962 | |
| Non-interested Trustees' deferred compensation | | | 27,947 | |
| Receivables: | | | | |
| | Fund shares sold | | | 3,806,763 | |
| | Dividends | | | 536,498 | |
| | Foreign tax reclaims | | | 13,090 | |
| | Dividends from affiliates | | | 179 | |
| Other assets | | | 6,869 | |
Total Assets | | | 1,156,503,348 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 4,018,484 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 4,278,274 | |
| | Advisory fees | | | 466,912 | |
| | Transfer agent fees and expenses | | | 220,825 | |
| | Professional fees | | | 45,278 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 29,101 | |
| | Non-interested Trustees' deferred compensation fees | | | 27,947 | |
| | Non-interested Trustees' fees and expenses | | | 4,322 | |
| | Affiliated fund administration fees payable | | | 2,334 | |
| | Custodian fees | | | 1,254 | |
| | Accrued expenses and other payables | | | 161,749 | |
Total Liabilities | | | 9,256,480 | |
Net Assets | | $ | 1,147,246,868 | |
| | |
See Notes to Financial Statements. |
| |
12 | JUNE 30, 2021 |
Janus Henderson U.S. Managed Volatility Fund
Statement of Assets and Liabilities
June 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 860,463,286 | |
| Total distributable earnings (loss) | | | 286,783,582 | |
Total Net Assets | | $ | 1,147,246,868 | |
Net Assets - Class A Shares | | $ | 26,218,226 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,054,923 | |
Net Asset Value Per Share(2) | | $ | 12.76 | |
Maximum Offering Price Per Share(3) | | $ | 13.54 | |
Net Assets - Class C Shares | | $ | 21,286,107 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,728,413 | |
Net Asset Value Per Share(2) | | $ | 12.32 | |
Net Assets - Class D Shares | | $ | 361,566,656 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 28,789,129 | |
Net Asset Value Per Share | | $ | 12.56 | |
Net Assets - Class I Shares | | $ | 468,596,299 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 36,747,108 | |
Net Asset Value Per Share | | $ | 12.75 | |
Net Assets - Class N Shares | | $ | 54,635,477 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,301,253 | |
Net Asset Value Per Share | | $ | 12.70 | |
Net Assets - Class S Shares | | $ | 28,736,175 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,257,342 | |
Net Asset Value Per Share | | $ | 12.73 | |
Net Assets - Class T Shares | | $ | 186,207,928 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 14,830,917 | |
Net Asset Value Per Share | | $ | 12.56 | |
| |
(1) Includes $3,981,067 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson U.S. Managed Volatility Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 15,119,568 | |
| Affiliated securities lending income, net | | 7,679 | |
| Dividends from affiliates | | 6,948 | |
| Unaffiliated securities lending income, net | | 242 | |
| Other income | | 208 | |
| Foreign tax withheld | | (16,420) | |
Total Investment Income | | 15,118,225 | |
Expenses: | | | |
| Advisory fees | | 5,602,769 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 71,448 | |
| | Class C Shares | | 219,597 | |
| | Class S Shares | | 70,394 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 390,584 | |
| | Class S Shares | | 70,418 | |
| | Class T Shares | | 527,929 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 37,266 | |
| | Class C Shares | | 16,506 | |
| | Class I Shares | | 804,473 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,906 | |
| | Class C Shares | | 1,255 | |
| | Class D Shares | | 50,071 | |
| | Class I Shares | | 20,716 | |
| | Class N Shares | | 1,552 | |
| | Class S Shares | | 407 | |
| | Class T Shares | | 2,824 | |
| Registration fees | | 133,820 | |
| Shareholder reports expense | | 124,911 | |
| Professional fees | | 54,931 | |
| Affiliated fund administration fees | | 31,344 | |
| Non-interested Trustees’ fees and expenses | | 17,384 | |
| Custodian fees | | 10,723 | |
| Other expenses | | 124,625 | |
Total Expenses | | 8,387,853 | |
Less: Excess Expense Reimbursement and Waivers | | (168,475) | |
Net Expenses | | 8,219,378 | |
Net Investment Income/(Loss) | | 6,898,847 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | JUNE 30, 2021 |
Janus Henderson U.S. Managed Volatility Fund
Statement of Operations
For the year ended June 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 328,002,377 | |
| Investments in affiliates | | (500) | |
Total Net Realized Gain/(Loss) on Investments | | 328,001,877 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (70,805,451) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (70,805,451) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 264,095,273 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson U.S. Managed Volatility Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
June 30, 2021 | | Year ended
June 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 6,898,847 | | $ | 17,213,554 | |
| Net realized gain/(loss) on investments | | 328,001,877 | | | 65,542,102 | |
| Change in unrealized net appreciation/depreciation | | (70,805,451) | | | (42,343,379) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 264,095,273 | | | 40,412,277 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (3,433,859) | | | (929,662) | |
| | Class C Shares | | (2,662,531) | | | (739,580) | |
| | Class D Shares | | (40,284,343) | | | (11,052,762) | |
| | Class I Shares | | (50,572,370) | | | (22,489,424) | |
| | Class N Shares | | (5,755,279) | | | (1,712,986) | |
| | Class S Shares | | (3,182,516) | | | (846,833) | |
| | Class T Shares | | (25,448,838) | | | (7,688,615) | |
Net Decrease from Dividends and Distributions to Shareholders | | (131,339,736) | | | (45,459,862) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (4,160,863) | | | (1,603,921) | |
| | Class C Shares | | (5,485,968) | | | (4,869,217) | |
| | Class D Shares | | 6,206,457 | | | (20,437,407) | |
| | Class I Shares | | (13,712,682) | | | (257,313,082) | |
| | Class N Shares | | 1,942,622 | | | (1,344,044) | |
| | Class S Shares | | (976,109) | | | (2,045,179) | |
| | Class T Shares | | (45,830,783) | | | (34,844,593) | |
Net Increase/(Decrease) from Capital Share Transactions | | (62,017,326) | | | (322,457,443) | |
Net Increase/(Decrease) in Net Assets | | 70,738,211 | | | (327,505,028) | |
Net Assets: | | | | | | |
| Beginning of period | | 1,076,508,657 | | | 1,404,013,685 | |
| End of period | $ | 1,147,246,868 | | $ | 1,076,508,657 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | JUNE 30, 2021 |
Janus Henderson U.S. Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.38 | | | $11.37 | | | $11.66 | | | $10.41 | | | $9.87 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.12 | | | 0.12 | | | 0.08 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 2.82 | | | 0.24 | | | 0.39 | | | 1.73 | | | 0.60 | |
| Total from Investment Operations | | 2.87 | | | 0.36 | | | 0.51 | | | 1.81 | | | 0.72 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.06) | | | (0.17) | | | (0.40) | | | (0.18) | |
| | Distributions (from capital gains) | | (1.36) | | | (0.29) | | | (0.63) | | | (0.16) | | | — | |
| Total Dividends and Distributions | | (1.49) | | | (0.35) | | | (0.80) | | | (0.56) | | | (0.18) | |
| Net Asset Value, End of Period | | $12.76 | | | $11.38 | | | $11.37 | | | $11.66 | | | $10.41 | |
| Total Return* | | 26.48% | | | 3.14% | | | 5.54% | | | 17.73% | | | 7.38% | |
| Net Assets, End of Period (in thousands) | | $26,218 | | | $27,092 | | | $28,718 | | | $24,345 | | | $42,371 | |
| Average Net Assets for the Period (in thousands) | | $28,579 | | | $29,019 | | | $26,466 | | | $26,879 | | | $32,360 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.94% | | | 0.94% | | | 0.96% | | | 0.94% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.94% | | | 0.94% | | | 0.96% | | | 0.94% | | | 0.92% | |
| | Ratio of Net Investment Income/(Loss) | | 0.43% | | | 1.08% | | | 1.07% | | | 0.69% | | | 1.21% | |
| Portfolio Turnover Rate | | 190% | | | 102% | | | 87% | | | 102% | | | 108% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.02 | | | $11.04 | | | $11.32 | | | $10.16 | | | $9.62 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.02) | | | 0.05 | | | 0.05 | | | 0.01 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | 2.72 | | | 0.22 | | | 0.39 | | | 1.68 | | | 0.59 | |
| Total from Investment Operations | | 2.70 | | | 0.27 | | | 0.44 | | | 1.69 | | | 0.63 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.04) | | | — | | | (0.09) | | | (0.37) | | | (0.09) | |
| | Distributions (from capital gains) | | (1.36) | | | (0.29) | | | (0.63) | | | (0.16) | | | — | |
| Total Dividends and Distributions | | (1.40) | | | (0.29) | | | (0.72) | | | (0.53) | | | (0.09) | |
| Net Asset Value, End of Period | | $12.32 | | | $11.02 | | | $11.04 | | | $11.32 | | | $10.16 | |
| Total Return* | | 25.71% | | | 2.41% | | | 4.94% | | | 16.96% | | | 6.59% | |
| Net Assets, End of Period (in thousands) | | $21,286 | | | $24,089 | | | $29,433 | | | $31,692 | | | $34,652 | |
| Average Net Assets for the Period (in thousands) | | $23,134 | | | $27,415 | | | $30,565 | | | $32,871 | | | $23,745 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.58% | | | 1.58% | | | 1.61% | | | 1.54% | | | 1.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.58% | | | 1.58% | | | 1.61% | | | 1.54% | | | 1.67% | |
| | Ratio of Net Investment Income/(Loss) | | (0.21)% | | | 0.44% | | | 0.41% | | | 0.12% | | | 0.39% | |
| Portfolio Turnover Rate | | 190% | | | 102% | | | 87% | | | 102% | | | 108% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson U.S. Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.23 | | | $11.22 | | | $11.52 | | | $10.29 | | | $9.75 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | 0.15 | | | 0.15 | | | 0.11 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | 2.77 | | | 0.24 | | | 0.37 | | | 1.70 | | | 0.55 | |
| Total from Investment Operations | | 2.85 | | | 0.39 | | | 0.52 | | | 1.81 | | | 0.74 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.09) | | | (0.19) | | | (0.42) | | | (0.20) | |
| | Distributions (from capital gains) | | (1.36) | | | (0.29) | | | (0.63) | | | (0.16) | | | — | |
| Total Dividends and Distributions | | (1.52) | | | (0.38) | | | (0.82) | | | (0.58) | | | (0.20) | |
| Net Asset Value, End of Period | | $12.56 | | | $11.23 | | | $11.22 | | | $11.52 | | | $10.29 | |
| Total Return* | | 26.71% | | | 3.41% | | | 5.79% | | | 17.99% | | | 7.67% | |
| Net Assets, End of Period (in thousands) | | $361,567 | | | $315,423 | | | $337,476 | | | $343,865 | | | $326,401 | |
| Average Net Assets for the Period (in thousands) | | $341,346 | | | $327,755 | | | $335,559 | | | $334,494 | | | $24,628 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.68% | | �� | 0.69% | | | 0.71% | | | 0.69% | | | 0.79% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.68% | | | 0.69% | | | 0.71% | | | 0.69% | | | 0.79% | |
| | Ratio of Net Investment Income/(Loss) | | 0.66% | | | 1.33% | | | 1.31% | | | 0.98% | | | 2.03% | |
| Portfolio Turnover Rate | | 190% | | | 102% | | | 87% | | | 102% | | | 108% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.37 | | | $11.36 | | | $11.65 | | | $10.40 | | | $9.86 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | 0.15 | | | 0.15 | | | 0.11 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 2.81 | | | 0.24 | | | 0.38 | | | 1.73 | | | 0.61 | |
| Total from Investment Operations | | 2.89 | | | 0.39 | | | 0.53 | | | 1.84 | | | 0.75 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.09) | | | (0.19) | | | (0.43) | | | (0.21) | |
| | Distributions (from capital gains) | | (1.36) | | | (0.29) | | | (0.63) | | | (0.16) | | | — | |
| Total Dividends and Distributions | | (1.51) | | | (0.38) | | | (0.82) | | | (0.59) | | | (0.21) | |
| Net Asset Value, End of Period | | $12.75 | | | $11.37 | | | $11.36 | | | $11.65 | | | $10.40 | |
| Total Return* | | 26.75% | | | 3.37% | | | 5.81% | | | 18.02% | | | 7.76% | |
| Net Assets, End of Period (in thousands) | | $468,596 | | | $428,888 | | | $685,211 | | | $643,071 | | | $325,847 | |
| Average Net Assets for the Period (in thousands) | | $439,089 | | | $645,830 | | | $674,516 | | | $495,143 | | | $203,913 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.73% | | | 0.69% | | | 0.70% | | | 0.68% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.69% | | | 0.69% | | | 0.70% | | | 0.68% | | | 0.65% | |
| | Ratio of Net Investment Income/(Loss) | | 0.66% | | | 1.33% | | | 1.32% | | | 0.98% | | | 1.43% | |
| Portfolio Turnover Rate | | 190% | | | 102% | | | 87% | | | 102% | | | 108% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
18 | JUNE 30, 2021 |
Janus Henderson U.S. Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.34 | | | $11.33 | | | $11.62 | | | $10.37 | | | $9.83 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.10 | | | 0.17 | | | 0.16 | | | 0.12 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 2.79 | | | 0.23 | | | 0.39 | | | 1.72 | | | 0.60 | |
| Total from Investment Operations | | 2.89 | | | 0.40 | | | 0.55 | | | 1.84 | | | 0.76 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.10) | | | (0.21) | | | (0.43) | | | (0.22) | |
| | Distributions (from capital gains) | | (1.36) | | | (0.29) | | | (0.63) | | | (0.16) | | | — | |
| Total Dividends and Distributions | | (1.53) | | | (0.39) | | | (0.84) | | | (0.59) | | | (0.22) | |
| Net Asset Value, End of Period | | $12.70 | | | $11.34 | | | $11.33 | | | $11.62 | | | $10.37 | |
| Total Return* | | 26.89% | | | 3.53% | | | 6.01% | | | 18.13% | | | 7.87% | |
| Net Assets, End of Period (in thousands) | | $54,635 | | | $46,912 | | | $48,624 | | | $44,651 | | | $44,318 | |
| Average Net Assets for the Period (in thousands) | | $49,066 | | | $48,706 | | | $48,621 | | | $43,765 | | | $61,477 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.55% | | | 0.55% | | | 0.56% | | | 0.54% | | | 0.57% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.55% | | | 0.55% | | | 0.56% | | | 0.54% | | | 0.57% | |
| | Ratio of Net Investment Income/(Loss) | | 0.78% | | | 1.47% | | | 1.46% | | | 1.12% | | | 1.63% | |
| Portfolio Turnover Rate | | 190% | | | 102% | | | 87% | | | 102% | | | 108% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.36 | | | $11.35 | | | $11.63 | | | $10.40 | | | $9.83 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.04 | | | 0.11 | | | 0.11 | | | 0.07 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | 2.80 | | | 0.24 | | | 0.39 | | | 1.72 | | | 0.57 | |
| Total from Investment Operations | | 2.84 | | | 0.35 | | | 0.50 | | | 1.79 | | | 0.72 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.11) | | | (0.05) | | | (0.15) | | | (0.40) | | | (0.15) | |
| | Distributions (from capital gains) | | (1.36) | | | (0.29) | | | (0.63) | | | (0.16) | | | — | |
| Total Dividends and Distributions | | (1.47) | | | (0.34) | | | (0.78) | | | (0.56) | | | (0.15) | |
| Net Asset Value, End of Period | | $12.73 | | | $11.36 | | | $11.35 | | | $11.63 | | | $10.40 | |
| Total Return* | | 26.29% | | | 3.02% | | | 5.45% | | | 17.56% | | | 7.40% | |
| Net Assets, End of Period (in thousands) | | $28,736 | | | $26,404 | | | $28,815 | | | $31,160 | | | $35,264 | |
| Average Net Assets for the Period (in thousands) | | $28,167 | | | $28,036 | | | $29,626 | | | $31,843 | | | $3,882 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.05% | | | 1.05% | | | 1.06% | | | 1.04% | | | 1.12% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.04% | | | 1.05% | | | 1.05% | | | 1.03% | | | 1.08% | |
| | Ratio of Net Investment Income/(Loss) | | 0.30% | | | 0.97% | | | 0.97% | | | 0.62% | | | 1.50% | |
| Portfolio Turnover Rate | | 190% | | | 102% | | | 87% | | | 102% | | | 108% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson U.S. Managed Volatility Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended June 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.22 | | | $11.21 | | | $11.51 | | | $10.28 | | | $9.75 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.07 | | | 0.14 | | | 0.14 | | | 0.10 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | 2.77 | | | 0.24 | | | 0.37 | | | 1.71 | | | 0.59 | |
| Total from Investment Operations | | 2.84 | | | 0.38 | | | 0.51 | | | 1.81 | | | 0.72 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.08) | | | (0.18) | | | (0.42) | | | (0.19) | |
| | Distributions (from capital gains) | | (1.36) | | | (0.29) | | | (0.63) | | | (0.16) | | | — | |
| Total Dividends and Distributions | | (1.50) | | | (0.37) | | | (0.81) | | | (0.58) | | | (0.19) | |
| Net Asset Value, End of Period | | $12.56 | | | $11.22 | | | $11.21 | | | $11.51 | | | $10.28 | |
| Total Return* | | 26.70% | | | 3.32% | | | 5.67% | | | 17.94% | | | 7.48% | |
| Net Assets, End of Period (in thousands) | | $186,208 | | | $207,700 | | | $245,736 | | | $260,106 | | | $254,637 | |
| Average Net Assets for the Period (in thousands) | | $211,171 | | | $230,458 | | | $255,699 | | | $258,372 | | | $156,046 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.79% | | | 0.80% | | | 0.79% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.78% | | | 0.79% | | | 0.80% | | | 0.78% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | 0.58% | | | 1.23% | | | 1.23% | | | 0.88% | | | 1.31% | |
| Portfolio Turnover Rate | | 190% | | | 102% | | | 87% | | | 102% | | | 108% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | JUNE 30, 2021 |
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson U.S. Managed Volatility Fund (the “Fund”) is a series of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A 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 C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, Janus Capital Management LLC (“Janus Capital”), or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Distributors LLC dba Janus Henderson Distributors (“Janus Henderson Distributors”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with United States of America generally accepted accounting principles ("US GAAP").
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of June 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded daily on the accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including Janus Capital or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. The risk of investing in securities in the European markets may also be heightened due to the referendum in which the United Kingdom voted to exit the EU, commonly known as “Brexit,” which immediately led to significant market volatility around the world, as well as political, economic and legal uncertainty. The United Kingdom formally left the EU on January 31, 2020 and entered into an eleven-month transition period, which expired on December 31, 2020. The negative impact on not only the United Kingdom and European economies could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 3,981,067 | $ | — | $ | (3,981,067) | $ | — |
| | | | | | | | | |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments' payables and receivables and related collateral on the Statement of Assets and Liabilities. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
Real Estate Investing
To the extent that real estate-related securities may be included in the Fund’s named benchmark index, Intech’s mathematical investment process may select equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to primarily invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of June 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $3,981,067. Gross amounts of recognized liabilities for securities lending (collateral received) as of June 30, 2021 is $4,018,484, resulting in the net amount due to the counterparty of $37,417.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.50% of its average daily net assets.
Intech Investment Management LLC (“Intech”) serves as subadviser to the Fund. As subadviser, Intech provides day-to-day management of the investment operations of the Fund subject to the general oversight of Janus Capital. Janus Capital owns approximately 97% of Intech.
Janus Capital pays Intech a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (net of any fee waivers and expense reimbursements).
Janus Capital has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus/administrative fees payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.65% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing October 28, 2020. If applicable, amounts waived and/or reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by Janus Services, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital. For all share classes, Janus Services also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Services is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, Janus Henderson Distributors, a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares’ average daily net assets, of up to 1.00% of the Class C Shares’ average daily net assets, and of up to 0.25% of the Class S Shares’ average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Henderson Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Capital serves as administrator to the Fund pursuant to an administration agreement between Janus Capital and the Trust. Under the administration agreement, Janus Capital is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent Janus Capital seeks
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
reimbursement and such costs are not otherwise waived). In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of Janus Capital and/or its affiliates, are shared with the Fund. Total compensation of $357,443 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended June 30, 2021. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of June 30, 2021 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the year ended June 30, 2021 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $559,325 were paid by the Trust to the Trustees under the Deferred Plan during the year ended June 30, 2021.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended June 30, 2021 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the year ended June 30, 2021, Janus Henderson Distributors retained upfront sales charges of $2,901.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended June 30, 2021.
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended June 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $4,795.
As of June 30, 2021, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 66 | | 3 | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 122,857,506 | $ 85,622,455 | $ - | $ - | $ - | $ (27,455) | $ 78,331,076 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2021 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 1,073,780,926 | $89,377,073 | $(11,045,997) | $ 78,331,076 |
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
| | | | | |
For the year ended June 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 51,642,938 | $ 79,696,798 | $ - | $ - | |
| | | | | |
For the year ended June 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 9,941,815 | $ 35,518,047 | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ 21,031,429 | $ (325,213) | $ (20,706,216) |
Capital has been adjusted by $21,031,429, including $9,839,451 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended June 30, 2021 | | Year ended June 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 514,221 | $ 6,242,296 | | 590,753 | $ 6,669,909 |
Reinvested dividends and distributions | 211,952 | 2,462,878 | | 63,514 | 736,127 |
Shares repurchased | (1,051,019) | (12,866,037) | | (799,921) | (9,009,957) |
Net Increase/(Decrease) | (324,846) | $ (4,160,863) | | (145,654) | $ (1,603,921) |
Class C Shares: | | | | | |
Shares sold | 59,259 | $ 701,226 | | 261,481 | $ 2,933,363 |
Reinvested dividends and distributions | 218,850 | 2,462,062 | | 59,008 | 664,426 |
Shares repurchased | (734,781) | (8,649,256) | | (802,453) | (8,467,006) |
Net Increase/(Decrease) | (456,672) | $ (5,485,968) | | (481,964) | $ (4,869,217) |
Class D Shares: | | | | | |
Shares sold | 1,436,796 | $ 17,280,406 | | 1,421,859 | $ 15,667,413 |
Reinvested dividends and distributions | 3,474,491 | 39,678,692 | | 954,274 | 10,888,263 |
Shares repurchased | (4,216,455) | (50,752,641) | | (4,371,567) | (46,993,083) |
Net Increase/(Decrease) | 694,832 | $ 6,206,457 | | (1,995,434) | $ (20,437,407) |
Class I Shares: | | | | | |
Shares sold | 7,234,711 | $ 88,979,673 | | 15,610,141 | $ 156,983,023 |
Reinvested dividends and distributions | 4,054,688 | 47,034,383 | | 1,857,770 | 21,494,401 |
Shares repurchased | (12,251,356) | (149,726,738) | | (40,075,255) | (435,790,506) |
Net Increase/(Decrease) | (961,957) | $(13,712,682) | | (22,607,344) | $(257,313,082) |
Class N Shares: | | | | | |
Shares sold | 626,872 | $ 7,724,952 | | 497,753 | $ 5,653,841 |
Reinvested dividends and distributions | 498,414 | 5,751,697 | | 148,638 | 1,712,308 |
Shares repurchased | (960,794) | (11,534,027) | | (803,055) | (8,710,193) |
Net Increase/(Decrease) | 164,492 | $ 1,942,622 | | (156,664) | $ (1,344,044) |
Class S Shares: | | | | | |
Shares sold | 182,920 | $ 2,216,484 | | 272,353 | $ 3,085,312 |
Reinvested dividends and distributions | 273,944 | 3,177,746 | | 73,025 | 844,896 |
Shares repurchased | (523,670) | (6,370,339) | | (560,758) | (5,975,387) |
Net Increase/(Decrease) | (66,806) | $ (976,109) | | (215,380) | $ (2,045,179) |
Class T Shares: | | | | | |
Shares sold | 1,484,571 | $ 17,854,091 | | 4,095,408 | $ 45,208,997 |
Reinvested dividends and distributions | 2,176,320 | 24,853,579 | | 661,528 | 7,554,650 |
Shares repurchased | (7,336,932) | (88,538,453) | | (8,167,280) | (87,608,240) |
Net Increase/(Decrease) | (3,676,041) | $(45,830,783) | | (3,410,344) | $ (34,844,593) |
6. Purchases and Sales of Investment Securities
For the year ended June 30, 2021, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$2,097,772,875 | $2,272,810,292 | $ - | $ - |
Janus Henderson U.S. Managed Volatility Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to June 30, 2021 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson U.S. Managed Volatility Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson U.S. Managed Volatility Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson U.S. Managed Volatility Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of June 30, 2021, the related statement of operations for the year ended June 30, 2021, the statements of changes in net assets for each of the two years in the period ended June 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of June 30, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended June 30, 2021 and the financial highlights for each of the five years in the period ended June 30, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2021 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
August 20, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-1093; (ii) on the Fund’s website at janushenderson.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s 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 Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 60-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each Fund of Janus Investment Fund (together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreements for the Janus Henderson Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2020, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Janus Henderson Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund, and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2021 through February 1, 2022, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements. “Management fees,” as used herein, reflect actual annual advisory fees and, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
Henderson Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Janus Henderson Funds, noting that Janus Capital generally does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2020, approximately 75% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2020, approximately 62% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson International Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the first Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2020 and the second Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital and Intech had taken or were taking to improve performance.
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the third Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2020 and the bottom Broadridge quartile for the 12 months ended May 31, 2020. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 10% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 9% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Janus Henderson Funds, Janus Capital performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Janus Henderson Funds are reasonable in relation to the management fees Janus Capital charges to funds subadvised by Janus Capital and to the fees Janus Capital charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; and (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; (4) 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by Janus Capital; and (5) 5 of 8 Janus Henderson Funds have lower management fees than similar separate accounts managed by Janus Capital.
The Trustees considered the fees for each Fund for its fiscal year ended in 2019, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”):
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Value Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson International Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for both share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Value Plus Income Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Triton Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that, the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Large Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to Janus Capital and its affiliates of their relationship with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund manager’s capital structure and cost of capital.
Additionally, the Trustees considered the estimated profitability to Janus Capital from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by Janus Capital to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by Janus Capital were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that Janus Capital’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Janus Henderson Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by Janus Capital
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
and any subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 73% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. They also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) as the assets of some of the Janus Henderson Funds have declined in the past few years, certain of those Janus Henderson Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined; (3) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (4) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by Janus Capital and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at Janus Capital, Janus Capital’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, Janus Capital appeared to be investing to increase the likelihood that these Janus Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at Janus Capital.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of Janus Capital separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of Janus Capital and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Janus Henderson Fund. The Trustees concluded that Janus Capital’s and the subadvisers’ use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital and the subadvisers may potentially benefit from their
Janus Henderson U.S. Managed Volatility Fund
Additional Information (unaudited)
relationship with each other in other ways. They concluded that Janus Capital and its affiliates share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of the Janus Henderson Funds and other clients serviced by Janus Capital and its affiliates. They also concluded that Janus Capital and the subadvisers benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from Janus Capital’s and/or the subadvisers’ receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital, the subadvisers or other Janus Henderson funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capital’s and the subadvisers’ ability to serve the Janus Henderson Funds.
LIQUIDITY RISK MANAGEMENT PROGRAM
The Janus Henderson Funds (other than the money market funds) have adopted and implemented a written liquidity risk management program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). Rule 22e-4, requires open-end funds to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The LRMP incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio investments; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Capital Management LLC, the Fund’s investment adviser (“Janus Capital”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various groups within Janus Capital’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”).
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). During the annual period ended June 30, 2021, the Program Administrator provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2020 through December 31, 2020 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period, and discussed the additional actions that the Liquidity Risk Working Group took during the period of market volatility in the spring of 2020 to monitor the Fund’s liquidity. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Program Administrator expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, taking into account the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson U.S. Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was June 30, 2021. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus Henderson in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
Schedule of Investments
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Henderson U.S. Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Henderson U.S. Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson U.S. Managed Volatility Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended June 30, 2021:
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Capital Gain Distributions | $89,536,249 |
Dividends Received Deduction Percentage | 8% |
Qualified Dividend Income Percentage | 8% |
Janus Henderson U.S. Managed Volatility Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 51 series or funds referred to herein as the Fund Complex.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson U.S. Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Chairman
Trustee | 1/08-Present
6/02-Present | Independent Consultant (since 2019) and Chief Operating Officer, muun chi LLC (organic food business) (since 2020). Formerly, Managing Partner, Impact Investments, Athena Capital Advisors LLC (independent registered investment advisor) (2016-2019), Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations) (2009-2016), Chief Executive Officer, Imprint Capital Advisors (impact investment firm) (2013-2015), and Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 51 | Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (since 2016), Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson U.S. Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Trustee | 1/13-Present | Principal, Curam Holdings LLC (since 2018). Formerly, Executive Vice President, Institutional Markets, of Black Creek Group (private equity real estate investment management firm) (2012-2018), Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 51 | Advisory Board Member of AEW Core Property Trust (open-end property fund) (since 2020), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of MotiveQuest LLC (strategic social market research company) (2003-2016), Director of Nuveen Global Investors LLC (2007-2011), Director of Communities in Schools (2004-2010), and Director of Mutual Fund Education Alliance (until 2010). |
Janus Henderson U.S. Managed Volatility Fund
Trustees and Officers (unaudited)
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TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
William D. Cvengros
151 Detroit Street
Denver, CO 80206
DOB: 1948 | Trustee | 1/11-Present | Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000), and Chief Investment Officer (1987-1994) and Vice Chairman and Director (1990-1994) of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 51 | Advisory Board Member, RevOZ Fund LP and related funds (real estate investments for opportunity zones) (since 2020), and Advisory Board Member, Innovate Partners Emerging Growth and Equity Fund I (early stage venture capital fund) (since 2014). Formerly, Managing Trustee of National Retirement Partners Liquidating Trust (2013-2016), Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013), Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009), Director of RemedyTemp, Inc. (temporary help services company) (1996-2006), and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
Janus Henderson U.S. Managed Volatility Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Raudline Etienne
151 Detroit Street
Denver, CO 80206
DOB: 1965 | Trustee | 6/16-Present | Founder, Daraja Capital (advisory and investment firm) (since 2016), and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (since 2016). Formerly, Senior Vice President (2011-2015), Albright Stonebridge Group LLC, and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 51 | Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019) and Director of Brightwood Capital Advisors, LLC (since 2014). |
Gary A. Poliner
151 Detroit Street
Denver, CO 80206
DOB: 1953 | Trustee | 6/16-Present | Retired. Formerly, President (2010-2013) of Northwestern Mutual Life Insurance Company. | 51 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013) and West Bend Mutual Insurance Company (property/casualty insurance) (since 2013). Formerly, Trustee of Northwestern Mutual Life Insurance Company (2010-2013) and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson U.S. Managed Volatility Fund
Trustees and Officers (unaudited)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past Five Years | Number of Portfolios/Funds in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee During the Past Five Years |
Independent Trustees | | | | |
Diane L. Wallace
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 6/17-Present | Retired. Formerly, Chief Operating Officer, Senior Vice President-Operations, and Chief Financial Officer for Driehaus Capital Management, LLC (1988-2006) and Treasurer for Driehaus Mutual Funds (1996-2002). | 51 | Director of Family Service of Lake County (since 2019). Formerly, Independent Trustee, Henderson Global Funds (13 portfolios) (2015-2017), Independent Trustee, State Farm Associates’ Funds Trust, State Farm Mutual Fund Trust, and State Farm Variable Product Trust (28 portfolios) (2013-2017). |
Linda S. Wolf
151 Detroit Street
Denver, CO 80206
DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 51 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), Shirley Ryan Ability Lab and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019), and Director of Walmart (until 2017). |
Janus Henderson U.S. Managed Volatility Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President and Head of North America at Janus Henderson Investors (since 2017), President and Head of North America at Janus Capital Management LLC (since 2013 and 2017, respectively), President at Janus Capital Group Inc. (since 2013), President and Director at Janus International Holding LLC (since 2019 and 2011, respectively), President at Janus Holdings LLC (since 2019), President and Director at Janus Management Holdings Corporation (since 2017 and 2012, respectively), Executive Vice President and Head of North America at Janus Distributors LLC (since 2011 and 2019, respectively), Vice President and Director at Intech Investment Management LLC (since 2012), and Executive Vice President at Perkins Investment Management LLC (since 2011). Formerly, Executive Vice President at Janus Capital Group Inc., Janus International Holding LLC, and Janus Management Holdings Corporation (2011-2019), Director at Perkins Investment Management LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
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Janus Henderson U.S. Managed Volatility Fund
Trustees and Officers (unaudited)
| | | | |
OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 7/20-Present | Head of Compliance, North America for Janus Henderson Investors (since September 2020) and Chief Compliance Officer for Janus Capital Management LLC (since September 2017). Formerly, Global Head of Investment Management Compliance for Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer of Janus Henderson Distributors (May 2017-September 2017), Vice President, Compliance at Janus Capital Group Inc., Janus Capital Management LLC, and Janus Distributors LLC (2009-2017). |
Jesper Nergaard
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present
2/05-Present | Head of U.S. Fund Administration, Janus Henderson Investors and Janus Services LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson U.S. Managed Volatility Fund
Notes
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Janus Henderson U.S. Managed Volatility Fund
Notes
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Janus Henderson U.S. Managed Volatility Fund
Notes
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson and Intech are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors |
| | | | 125-02-93016 08-21 |
Item 2 - Code of Ethics
As of the end of the period covered by this Form N-CSR, the Registrant has adopted a Code of Ethics (as defined in Item 2(b) of Form N-CSR), which is posted on the Registrant's website: janushenderson.com. Registrant intends to post any amendments to, or waivers from (as defined in Item 2 of Form N-CSR), such code on janushenderson.com within five business days following the date of such amendment or waiver.
Item 3 - Audit Committee Financial Expert
The Registrant's Board of Trustees has determined that the following members of the Board's Audit Committee are "audit committee financial experts," as defined in Item 3 to Form N-CSR: William D. Cvengros, Gary A. Poliner, and Diane Wallace who are each "independent" under the standards set forth in Item 3 to Form N-CSR.
Item 4 - Principal Accountant Fees and Services
Janus Investment Fund (the "Trust"), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end investment company, offers 47 funds which include multiple series of shares with differing investment objectives and policies. The funds comprising the Trust have differing fiscal year ends (June 30 and September 30). This Form N-CSR relates to funds with June 30 fiscal year ends (the "Funds").
(a) Audit Fees
The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Funds' annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $951,717 in fiscal 2021 and $1,094,159 in fiscal 2020.
(b) Audit-Related Fees
The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Funds' financial statements and are not reported under paragraph (a) of this Item were $0 in fiscal 2021 and $24,532 in fiscal 2020.
The nature of the services comprising the fees disclosed under this category includes agreed upon procedures.
(c) Tax Fees
The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were $200,771 in fiscal 2021 and $194,918 in fiscal 2020.
The nature of the services comprising the fees disclosed under this category includes tax compliance, tax planning, tax advice, and corporate actions review.
(d) All Other Fees
The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were $0 in fiscal 2021 and $0 in fiscal 2020.
(e) (1) The registrant's Audit Committee Charter requires the registrant's Audit Committee to pre-approve any engagement of the principal accountant (i) to provide audit or non-audit services to the registrant or (ii) to provide non-audit services to the registrant's investment adviser or any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X. The Chairman of the Audit Committee or, if the Chairman is unavailable, another member of the Audit Committee who is an independent Trustee, may grant the pre-approval. All such delegated pre-approvals must be presented to the Audit Committee no later than the next Audit Committee meeting.
(2) 0%
(f) Not applicable as less than 50%
(g) The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were $200,771 in fiscal 2021 and $194,918 in fiscal 2020.
(h) The registrant's audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.
Item 5 - Audit Committee of Listed Registrants
Not applicable.
Item 6 - Investments
(a) Schedule of Investments is contained in the Reports to Shareholders included under Item 1 of this Form N-CSR.
(b) Not applicable.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable to this Registrant.
Item 8 - Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant.
Item 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to this Registrant.
Item 10 - Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees.
Item 11 - Controls and Procedures
(a) The Registrant's Principal Executive Officer and Principal Financial Officer have evaluated the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) within 90 days of this filing and have concluded that the Registrant's disclosure controls and procedures were effective, as of that date.
(b) There have been no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the Registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12 - Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
(a) Not applicable.
(b) Not applicable.
Item 13 - Exhibits
(a)(1) Not applicable because the Registrant has posted its Code of Ethics (as defined in Item 2(b) of Form N-CSR) on its website pursuant to paragraph (f)(2) of Item 2 of Form N-CSR.
(a)(2) Separate certifications for the Registrant's Principal Executive Officer and Principal Financial Officer, as required under Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached as Ex-99CERT.
(b) A certification for the Registrant's Principal Executive Officer and Principal Financial Officer, as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, is attached as Ex99.906CERT.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Janus Investment Fund
By: /s/ Bruce Koepfgen
Bruce Koepfgen, President and Chief Executive Officer of Janus Investment Fund
(Principal Executive Officer)
Date: August 30, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: /s/ Bruce Koepfgen
Bruce Koepfgen, President and Chief Executive Officer of Janus Investment Fund
(Principal Executive Officer)
Date: August 30, 2021
By: /s/ Jesper Nergaard
Jesper Nergaard, Vice President, Chief Financial Officer, Treasurer and Principal Accounting Officer of Janus Investment Fund
(Principal Accounting Officer and Principal Financial Officer)
Date: August 30, 2021
